Doamin name renewal

Here is a relatively simple question. I just need some clarification:

My Domain name renewal is coming up and in looking at the area where we need to buy the domain name, I get this message :

For 1600 credits, you can choose a customized domain name for your forum for one year. If your forum is still active after this period, the second year is free!

Just to clarify, do I need to renew and the next year is free or is this coming year free ?

Hope all is well with you all.

Andre