Have you topped up a UK pension to cover gaps?

[andye]

Can you specify which years you want to pay for? My understanding is that you pay a lump sum into the HMRC bank account and then they allocate it - but I can't see anything that tells me how they do this (ie will they allocate to Class 2 years first or Class 3)? My wife is in a similar situation with a mix of class 2 and 3, but she only needs to top up the class 2's to get her full 35 years.

I was wrestling with this as she has 3 class 3 years when not working in Aus before the Class 2s to date.

I called and they said not to worry and they would allocate the best way.

I am not 100% confident they will do it to best advantage but apparently the advice is to wait the 6-8 weeks for the record to update then there is a process where you can ask for the payment to be reallocated if you don't like what's happened

 

[SydneySwan]

Could you simply not make multiple payments, one for each year that you wish to pay? If it comes down to reallocating - at least you can argue it should have been obvious that you were paying a year at a time for the cheapest years.

 

[aplmac]

Just as an observation of the UK pension system: I've just come off the phone to them (1hr 6mins on hold) to query why my 2023-2024 year for National Insurance contributions is showing as "year not full".
I received my contributions invoice dated 6th April 2024 by snail mail, and paid it upon receipt 14th May 2024. So six months ago.
When I finally spoke to a human, he advised me that yes, my payment had been received 14th May, and was sitting in my NI account, just not allocated to the tax year. So I asked when that would that happen, and he said that if he sends in the enquiry to the "specialist team that does the allocations" TODAY, the estimated backlog time for them to look into it would be MID-AUGUST 2025!!! (by which time I'll have got my notice for the 2024-2025 tax year) so if my record isn't showing updated by mid-August 2025, please to give them a call back then so they can escalate it!!! Pip pip cheerio!!
Honestly, there are no words.....!!!!

 

[kelvedon]

Exactly

Just as an observation of the UK pension system: I've just come off the phone to them (1hr 6mins on hold) to query why my 2023-2024 year for National Insurance contributions is showing as "year not full".
I received my contributions invoice dated 6th April 2024 by snail mail, and paid it upon receipt 14th May 2024. So six months ago.
When I finally spoke to a human, he advised me that yes, my payment had been received 14th May, and was sitting in my NI account, just not allocated to the tax year. So I asked when that would that happen, and he said that if he sends in the enquiry to the "specialist team that does the allocations" TODAY, the estimated backlog time for them to look into it would be MID-AUGUST 2025!!! (by which time I'll have got my notice for the 2024-2025 tax year) so if my record isn't showing updated by mid-August 2025, please to give them a call back then so they can escalate it!!! Pip pip cheerio!!
Honestly, there are no words.....!!!!

Exactly the same for me. Paid in May, not showing on my NI contributions record so called them in August. Was told that yes, they had received the payment but it would take 8 weeks to be reflected on my records……still not showing.
The time frame is not a concern to me, but interestingly my estimated maximum pension (at 67) has been reduced by the equivalent of one year, though the current eligibility amount remains the same. I.e. they seem to have reduced by existing “years of contribution” by a year.

 

[aplmac]

Exactly

Exactly the same for me. Paid in May, not showing on my NI contributions record so called them in August. Was told that yes, they had received the payment but it would take 8 weeks to be reflected on my records……still not showing.
The time frame is not a concern to me, but interestingly my estimated maximum pension (at 67) has been reduced by the equivalent of one year, though the current eligibility amount remains the same. I.e. they seem to have reduced by existing “years of contribution” by a year.

Shrinkflation!

 

[Rebus]

Can you specify which years you want to pay for? My understanding is that you pay a lump sum into the HMRC bank account and then they allocate it - but I can't see anything that tells me how they do this (ie will they allocate to Class 2 years first or Class 3)? My wife is in a similar situation with a mix of class 2 and 3, but she only needs to top up the class 2's to get her full 35 years.

Both my wife and I are approved to make NI contributions at the Class 2 rate. She made an initial payment of 1 year as a dummy run. We assumed that it would be allocated to the oldest outstanding year but it was filled against the current FY. We then made another payment equivalent to 3 years and sent a hard copy letter (yes, really) to confirm that we had made the payment and stipulating the years against which the payment was to be allocated. A few months later we could see that her NI record had been correctly updated. HMRC also sent a hard copy letter to confirm payment receipt and allocation.

My take away from this is that each time we make a payment we are going to send a letter via snail mail to confirm and state the years to which it refers. It may be the case that each incoming letter has to be scanned, allocated to an employee and actioned.

On a side note, I echo the sentiments of others that if you are approved to backfill outstanding years at Class 2 rates it is a no-brainer. Yes, the income will affect your Australian age pension entitlement but the lack of means-test makes the UK age pension well worth having. I would also suggest to pay as many outstanding years as you can afford in case your cicrumstances change and you are not longer working. At that point you would have to pay at the Class 3 rate.

 

[kelvedon]

Be aware that UK age pensions drawn in Australia are frozen at the rate that they are first drawn. There is no increase in the amount paid, which with inflation diminishes the real value of the pension.