Topping up NI contributions
September 22nd, 2009
If you reach State retirement age by April 5 2015 and have gaps in your NI contributions, you may now top up your NI records to ensure you are entitled to a full state pension. You can go back as far as 1975 and top up at a rate of £12.05 per missing week.
To qualify for the full basic pension, currently £4,953 per annum, you will need 30 years of full contributions, effectively £165 per year of contributions. This will cost £626.60 (£12.05 * 52) per missing year. To make it worthwhile topping up, you would need to collect your pension for almost 4 years - £626/165.
For others not reaching retirement age before April 5 2015, topping up is restricted to buying a maximum of six years of contributions, with at least one full year already on record.
The content of this article is for general information only. It should not be relied on and action which could affect your business or personal circumstances should not be taken without appropriate professional advice.
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