Class 3 Contributions

If you want to pay for missing National Insurance contributions (Nics) to top up your state pension entitlement, do so before April 6, after that the costs will rocket by 49%.

For the rest of this tax year, until 6 April, the cost of buying back each missing year, up to a maximum of 6 years at any one time, is £421.20 a year. But in less than a month that will rise to £626.60.

You need a 10 year Nics history to be entitled to a basic state pension, and receive 26% of the full weekly amount.

Bear in mind, too, that from April 2010 you will only need 30 years Nics history for a full basic state pension, down from 44 for men and 39 for women.

Buying back years is not suitable for everyone though, married women, younger people and those who stand to fall into the means testing trap might see little benefit.

For ways to pay extra Class 3 contributions call the National Insurance Enquiry Helpline on 0845 915 5996.


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