N.I.payments

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starmatch
starmatch Posts: 2 Newbie
in Pensions, annuities & retirement planning
Hi Everyone
I am a man of 60 thinking of retiring early, i have been told that i will still have to pay National insurance until my expected retirement date which is 66, is this correct.
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  • molerat
    molerat Posts: 31,866 Forumite
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    edited 11 December 2017 at 11:26PM
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    You can pay voluntary NI class 3 contributions if you need to add to your state pension if you are short of the full amount but you do not have to pay them. Have you had a state pension forecast ?
  • Silvertabby
    Silvertabby Posts: 9,023 Forumite
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    Only if you can/want to increase your State pension.

    What is your current State pension forecast?
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
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    starmatch wrote: »
    Hi Everyone
    I am a man of 60 thinking of retiring early, i have been told that i will still have to pay National insurance until my expected retirement date which is 66, is this correct.

    You only *have* to pay NI until your retirement date if you earn enough to be actually liable for NI (Currently £157 per week.)

    If you're not earning that much, then see above about voluntarily paying it, if you need to.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • starmatch
    starmatch Posts: 2 Newbie
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    I have already paid in enough contributions to get my full state pension at 66, but I was told that if I retire early at 60,then the N.I. will still have to be paid until I am 66
  • molerat
    molerat Posts: 31,866 Forumite
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    edited 12 December 2017 at 2:04PM
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    starmatch wrote: »
    I have already paid in enough contributions to get my full state pension at 66, but I was told that if I retire early at 60,then the N.I. will still have to be paid until I am 66
    Compulsory NI contributions are paid on employment income over £157 per week which does not include pension income and is payable up until state retirement age regardless of having paid enough for a "full" pension. As long as your pension forecast to date is at £155.65 or above then you have nothing to do or pay, sit back and enjoy your retirement. I must say that it is unusual to find someone who can afford to retire at 60 and have a full state pension !
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
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    starmatch wrote: »
    I have already paid in enough contributions to get my full state pension at 66, but I was told that if I retire early at 60,then the N.I. will still have to be paid until I am 66

    Double check (if you haven't already here) your contributions to state pension: https://www.gov.uk/check-state-pension

    If you do have enough contributions for a full pension, and you're earning below the limit for NI contributions, then you don't have to voluntarily pay.

    It's only if you're earning more than that limit, that you must pay N.I. until retirement age, regardless of whether you have already contributed sufficient for a full state pension (N.I. pays for more than pensions.)
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • TBC15
    TBC15 Posts: 1,452 Forumite
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    molerat wrote: »
    Compulsory NI contributions are paid on employment income over £157 per week which does not include pension income and is payable up until state retirement age regardless of having paid enough for a "full" pension. As long as your pension forecast to date is at £155.65 or above then you have nothing to do or pay, sit back and enjoy your retirement. I must say that it is unusual to find someone who can afford to retire at 60 and have a full state pension !

    What’s unusual the retire at 60 bit or have a full state pension contributions at 60?
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
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    TBC15 wrote: »
    What’s unusual the retire at 60 bit or have a full state pension contributions at 60?

    The latter I suspect. Usually due to contracting out reducing it. I'll be back to full contributions required by the time I'm 52 (maybe 53) for that reason, (and planning on retiring long before 60.)

    Won't be able to claim it until I'll be 67 however..
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • TBC15
    TBC15 Posts: 1,452 Forumite
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    15yrs to go, I’d keep an eye on those goal posts.
  • mgdavid
    mgdavid Posts: 6,705 Forumite
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    starmatch wrote: »
    I have already paid in enough contributions to get my full state pension at 66, but I was told that if I retire early at 60,then the N.I. will still have to be paid until I am 66

    who exactly told you this?
    The questions that get the best answers are the questions that give most detail....
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