Make a 27% Return!

I've had a letter from those very nice people at HMRC.

It seems that I'm entitled to something called Graduated Retirement Benefit.  I haven't actually worked for the past 6 years and so haven't paid any National Insurance, but it seems that I can voluntarily make Class 3 payments of £626.60 a year to effectively 'buy back' these missing years.

Now I'm no mathemetician, but I got out my pencil and did some sums. 

In April the basic states pension goes up to £5,077.80 a year.  According to the rules, each year I pay for entitles me to 1/30th of the full pension.  So, for £626.60 I get back £169.26 a year.  I work that out to be a return of 27%.

This is what my grandchildren call a 'no brainer'.

Be well.