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National insurance poll

Discussion in 'Teaching abroad' started by clovispoint, Jul 31, 2017.

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What are you doing about National Insurance?

  1. I have no National Insurance contributions

  2. I have some years of National Insurance but no longer contribute

  3. I have some years of National Insurance and plan to contribute from overseas

  4. I have some years and continue to pay National Insurance (class 2 / 3) from overseas

  5. I am not worried about my pension future

Results are only viewable after voting.
  1. clovispoint

    clovispoint Occasional commenter

    A thread earlier prompted this poll, who still pays National Insurance whilst overseas? I have many years to go before I will see a state pension but I continue to pay as I want some fall back plan on top of my retirement investments.
     
    Helen-Back likes this.
  2. kdec

    kdec New commenter

    I have many, many years to go and so far have one year of contributions in the UK and six in France... European pensions tend to be quite generous so as long as there is no mortgage to pay it'll be fine and even better if I have a little rental apartment for a bit of extra cash.
     
  3. clovispoint

    clovispoint Occasional commenter

    The countries I have worked in did not allow me any local schemes so I've had to stick with national insurance as a back up. Fully paid up right now, it runs at £159 a week which isn't going to give me a comfortable retirement so I'm saving elsewhere too. My only concern is that there'll be some means test down the line and I'll be penalised for being sensible!
     
    Teachallover and Helen-Back like this.
  4. Mainwaring

    Mainwaring Lead commenter

    I had just finished paying my 40 years when they reduced it to 30.
     
  5. clovispoint

    clovispoint Occasional commenter

    That is annoying! I had five years removed then returned and my pension age upped. The goal posts are a bit shonky but I just hope they stay up.
     
  6. Teachallover

    Teachallover Occasional commenter

    I completely agree with your concern clovispoint. Who can say what will happen in 30-40 years time...?
     
    clovispoint likes this.
  7. snowflakesfalling

    snowflakesfalling Occasional commenter

    I thought it was 35 years you needed?
     
  8. clovispoint

    clovispoint Occasional commenter

    It is currently 35 years- it has changed a few times.

    I have serious concerns about pensions in the future. The aging population means the costs to the government can only go up. The rise in pensionable age is a mitigation against the subsequent increase in funding costs. More pensioners and less workers to fund them. I fully expect pensionable age to increase, hopefully years of contribution will not. I don't really want to have to depend on a full-time salary at 68 (my current pensionable age) so I am saving hard to allow me to at least make choices about the sort of work I may need to do post- 60. I've a small teacher's pension as I've spent most of my career teaching overseas. Means testing is my biggest worry, I currently save/ invest my gratuity (which equates to the employers contribution to pension) and save at least as much again for my part.

    The Tory party tried something that needs to be done in the last election, basically seizing assets to pay for care and health (older population is a sicker population). It did no go down well! I expect to see inheritance tax increase because the money to pay for care and pensions has to come from somewhere. If not that, means testing (as it is a much easier sell than increasing inheritance tax). I would prefer that they collected from the deceased rather than the living but many of the younger generation are hoping for a windfall from parents property to fund their retirement. UK property has sucked so much money out of the economy that inheritance is how many people hope to get actual money in their pockets.

    Best plan is to have many plans so I will keep paying my NI, saving and investing. I can't rely on an inheritance.
     
  9. Teachallover

    Teachallover Occasional commenter

    I was broadly speaking, meaning in 30-40 years time when you reach retirement age...
     
  10. 576

    576 Established commenter

    It is currently 30 years to get anything. 35 for the full pension but more if you paid in less because you were contracted out (eg like TPS).
    You can see your pension forecast online at government gateway along with details of how many years you've paid and how many still to go.
    Please don't base your decisions on hearsay. I need 38 years. Find out how many years conts you personally need because it's not one size fits all.
     
    clovispoint likes this.
  11. clovispoint

    clovispoint Occasional commenter

    It is not all or nothing. If you have less than the qualifying years to qualify for the full pension you get the fraction. For example, for me, if I have 12 years NI contributions I will get 12/35s of the full pension on reaching retirement age. The rules change and it all depends on you age so as 576 days, get your forecast online. A bit of a faff but easy to do.
     
  12. AshgarMary

    AshgarMary New commenter

    Clovis: I think you mean £159 per annum!

    This below relates to state pension earned via NI, not Teacher's pension etc.

    I paid it while abroad. As others have pointed out, the goal posts have shifted several times. When I went to live abroad, I only needed 30 years in to get full pension, I had 29. Now I have to get 35 years in and so have been paying self-employed contributions for 3 or 4 years now but I think they're pfaffing about with that after April 2018.

    A further fly in the appointment - if you've paid (or been credited with) 35 full years (only and no periods of contracting out) you get full rights to state pension. If, however, you have paid 35 years but say 5 years were contracted out, then they will knock whatever they deem 5 years worth to be off eg for me £40 PER WEEK (my employment pension is just £55 per week).

    It seems also that if you pay 35 full years PLUS additional years contracted out say 40 years total contributions (35 full, 5 contracted out) you will still get that knocked off despite having paid more into the system than someone who only has the 35 full years. It is NOT clear, not at all, that if you pay in an additional 5 full years that you can wipe that out and get full state pension.

    Further, if you ask the pensions place about 'basic state pension' (which my brother did) - he is younger and only has 28 years in - they say he only needs another 2 (to make 30 years) without appraising him of the fact that the 'basic state pension' is only available to those reaching state pension age before April 2016 and everyone else has to call it something else 'new state pension'. He has made life changing decisions on that basis despite his big sister advising him that it is wrong information.

    The whole system is utter, muddled chaos.

    My advice is if you are under 40, accept that you will probably have to make your own provisions and nothing is guaranteed. Over 40, accept it too but it is too late in life probably to make a significant difference. I am thinking of crowdfunding a chain of workhouses.
     
  13. clovispoint

    clovispoint Occasional commenter

    Not sure what you mean. Current fully paid up new pension is £159 per week. Link

    Nothing is guaranteed and most people are in different positions. As I said state pension is a back up plan. It could be £8090 a year extra income (hopefully much more with inflation etc). I hope so.

    Do your own homework, I'm passing on my understanding from what I've read. Very happy to be enlightened or directed to more information.
     
    Teachallover likes this.
  14. stopwatch

    stopwatch Established commenter

    I believe that, from around April this year, overseas contributions to NI will increase to around £75 per month instead of the current £13ish per month.

    Still a good deal though.

    Similar to others, I am concerned that, as government look to decrease costs for State Pension, they will means test it. If you have a teachers pension, this may/will mean they will reduce your State Pension accordingly.

    I have assumed that the above will be the case (I am due to get my State Pension in 6 years) and have saved/invested to supplement my 21 years teachers pension contributions which gives me about £10,500 pa
     
    clovispoint likes this.
  15. AshgarMary

    AshgarMary New commenter

    My apologies - I thought you meant the annual contribution to National Insurance class 2 which is approx £159 pa. Misunderstood what you were saying.
     
    clovispoint likes this.
  16. Helen-Back

    Helen-Back Occasional commenter

    The clas 3 c8ontributions are about 52 quid a month, not 75. Like you say, still a good deal. If you paid a reducef NI during your working years your pension will be reduced a little (25 pound a week in my case), but you can make it up. I need to pay in an extra 2 years (37 in total) to get the full pension.

    The government seems to have drawn a line in the sand. The recent pension age rise only affected those with more than 20 to retirement (those below 47). I am hoping that is their benchmark. They have to allow people sufficient time to fill the financial gap.
     

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