National Insurance contributions

florian

Hi there, I'm new on the forums and am looking for some advice.

I am 22 and about to start full-time work and as such will be paying NI contributions. However, I plan to move permanently abroad within the next 10 years, what happens to these -say -10 years worth of contributions? Are they lost?

Many thanks,
Florian

CLAPTON

some of the NI payments are 'insurance' against unemplyment & sicknesss benefit while you are working
and some goes towards your state pension... which you will still be able to claim at 68

florian

Thanks for the quick reply. Does that mean I can claim (10 years worth) of state pension at 68, even if living abroad?

Thanks again

CLAPTON

well yes although I'm sure things will have changed by then... maybe for the better who can say

florian

Cheers -- so best to also contribute to my employers final salary scheme too then, and get both when I'm retiring?

CLAPTON

of course you have no choice about NI but yes I would very much suggest paying into the final salary scheme too... you is your employer and how much do you have to contribute?

LittleVoice

florian wrote: »

Thanks for the quick reply. Does that mean I can claim (10 years worth) of state pension at 68, even if living abroad?

Thanks again

You may like to read this -
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/PensionsAndRetirement/StatePension/DG_10026714

florian

My employer pays 5% of my salary into the scheme for me, and for every 1% extra I pay they will pay another 1.5% (up to 12.5%). So if i pay 6%, they pay 12.5% and a total of 18.5% is invested. Which sounds pretty good to me. Although I'm not experienced at all in these matters.

CLAPTON

that doesn't sound like a final salary scheme but a defined contributions scheme... still good

florian

LittleVoice wrote: »

You may like to read this -
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/PensionsAndRetirement/StatePension/DG_10026714

Thanks for the link, from what I gather, you need to have worked atleast 10 years to qualify for a minimum state pension (which is 25% of the full .. woo great).

EdInvestor

florian wrote: »

Thanks for the link, from what I gather, you need to have worked atleast 10 years to qualify for a minimum state pension (which is 25% of the full .. woo great).

That's under the old rules. Under the new rules (from 2010) there is no minimum number of years to qualify. Under the new rules 10 years conts would get you a pension worth a third of the full basic pension, as only 30 years conts will be required to qualify for the full pension.