NI short fall?

GlasweJen

I'm 22 and been in part time work/full time uni for 3 years. When I was made unemployed for 8 months last year I was unable to claim NI stamps due to still being a full time student. I have since got a letter saying that I have an NI shortfall and I'll need to pay £156 to make it up or else I may not get a pension when I'm older. The lady on the phone was very unhelpful and told me to pay up now or else retire with nothing but the letter implies that I may not need to pay this. Does anyone know what this is all about?

healy

The letter is giving you the chance to pay that amount to make the year up to a qualifying year for your state retirement pension. You do not have to pay this if you do not want to. You have up to 6 years after the end of that tax year to pay it so you could pay it later if you want.

From 2010 men and women only need 30 qualifying years to receive a full pension so there are more years you can "miss" than before but it is up to you if you want to pay it or not. Best to ignore the rude, ignorant women, but not all staff are like that.

Oldernotwiser

Healy's absolutely right about this. Given that you're going into medicine and the likely value of the state pension in 45 years time, I don't think that you need to bother about it!

GlasweJen

thanks, i got quite worried when she said i wouldn't get a pension, i had images of pensioner me sitting with a candle in a dark house.

suelees1

GlasweJen wrote: »

thanks, i got quite worried when she said i wouldn't get a pension, i had images of pensioner me sitting with a candle in a dark house.

nice one glaswejen:rotfl: . I've a few mates up there who could pop by and lend you a shovel of coal and cup of soup.

glitterkitty

You dont need to pay. especially not if you are young. the letters have to go out by law to let you know about it. The letter doesnt say you wont get a pension, its just telling you that you could pay to make another qualifying year
http://studenttaxadvice.direct.gov.uk

GlasweJen

if you read my post the lady on the phone told me i wouldn't get a pension