RE: Class 2 for investors ?7 Dec 2025 13:45
Yes, at the time finacial advisers were recommended people only made the basic contribution, not the extra top up....but it means you do'nt get full state pension... But you have your private pension to compensate, and I guess you put the saved cashed into that.... which sounds great at the time..probably is for many.......but if your changing jobs every few years interrupting the private pension, have periods out of work, time out, markets crash, pension scheme fails or gives poor return, or the gov increases the years required again, maybe the safe bet is not contracting out......
I am waiting for my pension forecast to see how many years I was contracted, so I know how it matches the 3 years extra above the required 35 years to get full state pension....
originally I only needed 30 years so many would expect to naturally contribute plenty of extras years for which you get no extra once full is achevied, but thats now become 38 years for me, standard 35 years(was 30),. plus 3 more to get full...
whats interesting is if you can pay class 2 contributions, it just £3.50/wk, about £180/year to claim another year...
I think full pension is ~£230wk, so 230/35= £6.50wk, thats all most doubling your money first year..... for class 3 which most pay its about £16wk so will take nearly 3 years to break even....
So even if you over paid a few years class 2, you simple cant beat that.....