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National insurance contributions

Discussion in 'Retirement' started by littlevanner, Oct 7, 2019.

  1. littlevanner

    littlevanner New commenter

    can anyone advise on whether I will still pay NI contributions once retired and drawing my TP at age 59. My NPA for state pension is 67. I assumed I would have to continue paying till then but someone today suggested I wouldn’t unless I ‘earned’ income . Thanks in advance !
     
  2. phatsals

    phatsals Established commenter

    No you don't - however - you need to check what your NI record is. If you already have full entitlement to State Pension, great, if not keep contributing until you do. You can do this either through voluntary Class 3, about £750 pa for £4.40pw additional pension, or if you can get invigilator or exam marking work, £153 pa Class 2 contributions for £4.40 pw additional pension. Likewise you could tutor and pay self employed Class 2 contributions that way.
     
  3. diddydave

    diddydave Established commenter

    You do not unless you want to.
    You can use the government's checking service to see how much state pension you qualify for: https://www.gov.uk/check-state-pension

    Mine tells me I need another 5 years of National Insurance to get the full amount and as @phatsals has said it is certainly worth seeing if you can pay the Class 2 rather than the Class 3 as they are 5 times less. £3 a week compared to £15 a week.

    Eligibility page: https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions (of particular interest to teachers is the examiner/invigilator option)
     
    Treacle3 likes this.
  4. Rott Weiler

    Rott Weiler Star commenter Forum guide

    I agree with previous posters. You do not pay NI on pension payments you receive from TPS, only income tax. But if you have a job as well you would pay NI on employment income from that until state pension age.

    Whether to voluntarily pay NI is a whole other (big and complicated) question on which there are several threads here.
     
    Treacle3 likes this.
  5. Treacle3

    Treacle3 New commenter

    This thread couldn't have come at a better time for me - just got an exam invigilator post today...
    Thanks everyone. I will read up on it :)
     
  6. littlevanner

    littlevanner New commenter

    Thank you for all the sound advice - now to do battle with the pension checker
     
  7. Iamtitanium

    Iamtitanium New commenter

    A little off topic but I've seen an exam invigilator job advertised at about £9.50 an hour. Is that about right and does the pay rate make a difference to whether you can pay class 2 or class 3 contributions?
     
  8. phatsals

    phatsals Established commenter

    The pay rate has no impact, it's the role itself. You can pay your tax via payroll but NI isn't payable, there is a clause that therefore allows you to pay NI as self employed. I've copied the regulations link here:-

    https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim74100

    For anyone trying to speak to HMRC and register it can sometimes be tricky, the people on the phone aren't always experienced and can try to fob you off. They did with me initially, but I when I quoted the regs they went off and checked. I was right. I know the same thing has happened to others, not always, but often.

    Once registered that's it, they just send a bill once a year. I've just paid for last year and now have only 1 more for full entitlement to State Pension - then a mere 6 year wait until I can claim it but hey ho.
     
    Iamtitanium likes this.
  9. Piranha

    Piranha Star commenter

    I would recommend trying to get a little tutoring. You will get a far better hourly rate, can take up to £1,000 per year tax free and you can still pay the voluntary class 2 NI.
     
    Iamtitanium likes this.
  10. Brianthedog

    Brianthedog Occasional commenter

    I thought about exam invigilation, but the hourly rate is rubbish! I can earn double the rate by tutoring.
     
  11. Treacle3

    Treacle3 New commenter

    Yes, but you have to want to do it... and you could earn even more by returning to teaching - if you want to...
    There is no preparation or expectations for "success" from being an exam invigilator. They are different "jobs".
    In the same way, I earn double the hourly rate as a gardener compared to a variety of available "delivery jobs"...but you have to be happy to be doing a physical job in a variety of weather conditions.
     
  12. eljefeb90

    eljefeb90 Senior commenter

    I do quite a lot of invigilation. Yes, it's boring but I go to my 'happy place' and find it meditative. I have no fewer than six different contracts. The basic is £10 per hour , one contract is £12 although I sometimes work as a Chief and that is £15.
    Towards the end of my time in teaching, I rigorously logged my hours and divided my net pay over several months. It came to £14 an hour.
    I was a Faculty Head on UPS 3 with all the accompanying stress, targets and pressure than went with it. When I wasn't working ridiculous hours, my mind was often thinking about issues at work.
    Give me invigilation any day.
     

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