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NI contributions

Discussion in 'Retirement' started by Nebka, Dec 18, 2018.

  1. Nebka

    Nebka New commenter

    I am claiming my TP do you still have to contribute to NIC, I have the required 35 years.
  2. lindenlea

    lindenlea Star commenter

    You definitely stop when you reach your state pensionable age and I think if you have 35years contributions you have enough as well. Someone else will come along who really knows soon.
  3. jonnymarr

    jonnymarr Occasional commenter

    Yes, you stop.

    However, owing to the 'contracting out' of public sector pensions, you won't necessarily receive a full state pension even after 35 contributory years. It's worth checking. See previous threads & google the Royal London guide ( "topping up your state pension / everything you ever wanted to know" ) It was recommended on here a while ago and I found it very helpful.
  4. Sundaytrekker

    Sundaytrekker Star commenter

    It depends if you have a job or not. You don’t pay NI on your pension income but if you have other earnings and are above the threshold then you will pay some until you reach state pension age. As jonnymarr said, even 35 years might not give you a full new state pension though it should give you the full old one. This is why some of us are keen to continue contributing to NI either through working or voluntary contributions. Sign up to your personal tax account on gov.uk to see your state pension forecast.
    eljefeb90 likes this.
  5. eljefeb90

    eljefeb90 Senior commenter

    There is a very detailed thread started on September 24 by @stopwatch. You were contracted out as a teacher, so you do not get the full state pension, just the basic. Simply put, there is about a £40 per week gap between the two, but it all depends how long you were contracted out for. You can make up this gap by a) working and earning above the lower earnings limit for National Insurance contributions of about £6000 per annum; b) not working and topping up your entitlement by paying a yearly voluntary payment of just under £800.
    Various people have done the number crunching and, very roughly, if you take the most costly option of the voluntary contributions, you will break even after three and a half years...your outlay will balance the amount of the increased pension. Basically, if you plan to live into your seventies, it's a no brainer. You can do the sums if you like...for every extra year of full contributions, you get about £4 a week which equals just over £200 a year.
    Bedlam3 likes this.
  6. Nebka

    Nebka New commenter

    Thanks for all your answers. Merry Christmas.
    Sundaytrekker and eljefeb90 like this.
  7. Bcschris

    Bcschris New commenter

    Another way to boost your state pension is if you help to look after grandchildren after retiring. I was able to claim my daughter-in-law's N I credits because I did regular child care while she returned to work. I have done this for 2017-18, and can do the same for the next two years. This will add a total of £15 per week to my state pension, for no outlay.
    Dorsetdreams likes this.
  8. catmother

    catmother Star commenter

    On the downside,that means having to look after children!:p
    PeterQuint and lindenlea like this.
  9. lindenlea

    lindenlea Star commenter

    Dorsetdreams and catmother like this.
  10. impis

    impis New commenter

    Another way to safeguard your NI contributions is to sign on at the job center. I haven't done that myself, as the idea of them expecting me to job search is not a happy one. Besides, I now volunteer with a charity that helps jobseekers and it would be very strange to swap sides.
  11. Dunteachin

    Dunteachin Star commenter

    You can't get Jobseekers Allowance if you're in receipt of an occupational pension.
    catmother likes this.
  12. applecrumblebumble

    applecrumblebumble Lead commenter

    There’s nothing stopping you looking for employed work if you are below state retirement age. Having an occupational pension does not stop you signing on and so maintaining your NI credits if you are looking for work. I think you also entitled to JSA if it is based on contributions paid within the last two tax years. After two years, all income including savings would probably preclude you getting JSA. I’m not sure how long you can keep signing on to maintain NI credits but you can only get JSA for 6 months.
    I personally have gone down the self employed route, as an examiner. This entitles me to pay class 2 contributions at £150 per year for a £4 ish a week uplift on my state pension that seems good value to me.
    eljefeb90 likes this.

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