Do you have a UK National Insurance number and have you considered buying back years towards your UK State Pension?

If you are aged between 40 to 73 and have worked in the UK for a minimum of 3 years at any time in your working life, you need to consider this as it could be transformational to funding your retirement. Typically, Jersey residents who have been contributing into the Jersey Social Security system are eligible to buy back years for only £163.80 per year. This is incredible value when you consider a full UK pension currently pays £203.85 per week.

There is a strict time limit on buying back years.

You’ve got until 5 April 2025 to buy back any missing national insurance years from 2006 to 2016. Normally you can buy back up to six years, but when the ‘new’ state pension was introduced, transitional arrangements were put in place to let you plug gaps all the way back to 2006. This was due to end on 5 April 2023, and then 31 July 2023, but because so many people are trying, the necessary government phone lines were clogged up so the date has been extended.

– Aged between 70 and 73(ish)+? This is for men born after 5 April 1951 (currently aged up to 73) and women born after 5 April 1953 (currently up to 71). Born earlier? You’re on the old state pension, so this doesn’t apply.

There are certain qualification criteria that must be met before HMRC will confirm if you are eligible to pay voluntary Class 2 contributions. However, the application process is straightforward so if you think it may be a possibility, we encourage you to submit an application to HMRC.

Why national insurance years matter..

The full ‘new’ state pension is currently £203.85 a week – however how much you receive depends on how many ‘qualifying’ full national insurance (NI) years you have. Most collect NI years through working and paying NI, but you can also get them if you’re claiming benefits or caring for others (if you’re not sure what this is about)  In general, you need around 35 full NI years to get the maximum state pension, though some will need a lot more (we’ve seen examples of people needing 44+ years) depending on your age and NI record up to now.

Securing an increased UK State Pension can be crucial when it comes to retirement planning and enjoying freedom over how you enjoy your money in the future.

Please contact us should you require guidance or wish to discuss this with your Wealth Planner.