NI contributions etc.

[Ironside]

Hi peeps,
Me and my partner are going to go full time next April and I wanted to know if we need to pay NI contributions etc. When we do.
We are both leaving our jobs and plan to travel at least a year before we think of working again.
Cheers Ironside

 

[Jim]

Check and see if you already qualify for full pensions.

 

[Ironside]

No Jim we won’t I’m 40 & swmbo is 49

 

[Figaro]

You'll need to continue paying NI contributions in that case to qualify for your full state pension

 

[Ironside]

Ok thankyou

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[Jim]

No Jim we won’t I’m 40 & swmbo is 49

I think you'll need 35 years worth of contributions to get a pension. If you've been paying since you left school and you do intend to work again. there is no reason why you can't have a couple of years off.

 

[Stealaway]

I think you'll need 35 years worth of contributions to get a pension. If you've been paying since you left school and you do intend to work again. there is no reason why you can't have a couple of years off.

They will tell you when you maxed out and even refund any overpayment. The pension contribution is only a small amount as far as I remember. Just set up a standing order.

 

[Northernraider]

I've been travelling /fulltiming 2 years now haven't worked since Dec 2017
I haven't paid ni since then but I'm 46 and planning to be working again

I've worked pretty much since leaving school so probably got 29/30 years paid in by now.

If your only 40 I wouldn't worry too much about having a year off

Especially as like me you'll be lucky to get a pension anyway as they keep raising it and have no bloody money apparentky.

I love how folk. That have never worked still get one regardless

 

[PhilMary]

If I recall correctly, the NI contributions are less if you earn less than a certain amount, so for the advantages of state pension I would think it is worth keeping up your NI contributions.
Phil

 

[Jim]

They will tell you when you maxed out and even refund any overpayment.

Are you sure? I thought you just keep paying

'I paid NI for 44 years and feel hard done by': STEVE WEBB replies

This week, our retirement Agony Uncle Steve Webb answers a reader who asks why after paying National Insurance for 44 years he is losing out on ‘a grand scale' from state pension reforms.

www.thisismoney.co.uk

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[Camdoon]

Gain free credits by earning between £118 and £166 per week. Or self employed costs circa £200pa. You can easily check your contributions online. Why assume?

 

[Pete5996]

You can check your NI contribution record here.

 

[Camdoon]

Are you sure? I thought you just keep paying

'I paid NI for 44 years and feel hard done by': STEVE WEBB replies

This week, our retirement Agony Uncle Steve Webb answers a reader who asks why after paying National Insurance for 44 years he is losing out on ‘a grand scale' from state pension reforms.

www.thisismoney.co.uk

You keep paying until you reach state pension age.
When the system changed in 2015 some people were told they would benefit from buying previous years when these purchases were of no benefit (mostly those on Defined Benefit pensions). The Government will refund any unnecessary over payment for those inadvertently mislead.

 

[Jim]

You keep paying until you reach state pension age.
When the system changed in 2015 some people were told they would benefit from buying previous years when these purchases were of no benefit (mostly those on Defined Benefit pensions). The Government will refund any unnecessary over payment for those inadvertently mislead.

Yes that's how I understood it, so taking a couple of years out won't penalise your pension at all as long as you have the 30 odd years in.

 

[Ivory55]

I think it’s only paid on above about £120 a week. Might be worth taking your year out from April to April rather than ruin 2 year’s of contribution.

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[Stealaway]

Are you sure? I thought you just keep paying

'I paid NI for 44 years and feel hard done by': STEVE WEBB replies

This week, our retirement Agony Uncle Steve Webb answers a reader who asks why after paying National Insurance for 44 years he is losing out on ‘a grand scale' from state pension reforms.

www.thisismoney.co.uk

You only have to continue to pay if you are working.
Once you have maxed out and stop working, at any age, there are no more payments necessary.

 

[Northernraider]

You can check your NI contribution record here.

Thanks for that I just did that so looks like I have 28 full years and 2 years with 50 weeks and 48 weeks from back in early 90's
21 years available to pay which if you only need 35 is a bit of a con really

 

[Northernraider]

I think it’s only paid on above about £120 a week. Might be worth taking your year out from April to April rather than ruin 2 year’s of contribution.

Weird thing is I just checked mine and despite not having worked since December 2017 . The 2017/2018 year is paid in full
My 2018/19 is not available

 

[Ivory55]

I am no expert just suggestions. They will get the money out of you one way or another. Haha

 

[SomeoneElse]

Remember mothers get NI contributions credits if claiming child benefit but not working. Even though hubby was earning oodles and they don't get any child benefit DiL was made to claim it so she gets NIC credits. Of course they took great delight in telling she wouldn't get any cash.

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[romany]

can't find the article now but there was something about losing money if you hadn't contributed in the last two years before you draw your pension. I have managed to lose a whole £1.50 of mine despite paying for for 38 years because not paid anything in last year still trying to find out why

 

[The Wino]

Although the state pension is hardly a fortune in times when annuity rates are so low you would need a fair bit of cash to buy an annuity with similar benefits in terms of regular increases index linking etc so worth looking into this

 

[Minxy]

Weird thing is I just checked mine and despite not having worked since December 2017 . The 2017/2018 year is paid in full
My 2018/19 is not available

The contributions you had already made up to December 2017 must have been sufficient to cover the minimum annual amount required, hence having full benefits for 2017/18.

 

[Deneb]

The contributions you had already made up to December 2017 must have been sufficient to cover the minimum annual amount required, hence having full benefits for 2017/18.

If you earn more than the lower earnings limit in any year (currently £6,136) your contributions are treated as having been paid in full. Northernraider presumably paid from April to December 2017 and earned at least that amount over that period.

I deliberately retired a few months into the 2017-18 financial year to get an additional full year credited, as I cannot get the maximum new state pension having spent my entire working life contracted out. I intend (god-willing) to buy 5 extra years before I reach SPA, which is the most I can get, but working an extra few months saved me paying £720 or thereabouts to get a full record for 2017-18.