Pension Contribution Question

PrincessJR

Hi All,

I know there are other questions on here relating to this but I have read the threads and am still not sure what to do.......

I had a letter yesterday stating that there is a shortfall in my NI contributions for 2006/07. I understand this as I became unemployed and didnt sign on.

I can pay £37.75 to cover 06/07. I know this is a bargain but......

My question is, as I am only 26, and hopefully have plenty of time to make up my 30 years (I already have 8 so need 22 more), should I not bother paying this?

I am saving for a wedding at the mo so money is tight!! However, I do plan to have children in a year or so, and so will take time off work.

Any advice really appreciated

Thanks
Jayne

JayZed

I say yes. It is, as you say, a bargain, and it gives you just a tiny bit more flexibility later in life - for example, if you end up having loads and loads of kids!

EdInvestor

I wouldn't bother, under the new rules you have plenty of leeway.

artha

PrincessJR wrote: »

Hi All,

I know there are other questions on here relating to this but I have read the threads and am still not sure what to do.......

I had a letter yesterday stating that there is a shortfall in my NI contributions for 2006/07. I understand this as I became unemployed and didnt sign on.

I can pay £37.75 to cover 06/07. I know this is a bargain but......

My question is, as I am only 26, and hopefully have plenty of time to make up my 30 years (I already have 8 so need 22 more), should I not bother paying this?

I am saving for a wedding at the mo so money is tight!! However, I do plan to have children in a year or so, and so will take time off work.

Any advice really appreciated

Thanks
Jayne

I wouldn,t bother as you are still young enough to get 30 years. If you are going to have children you may get credits for period when you can,t work. My wife has 3 years credits for the the time she didn,t work while looking after our daughter in early years. I don't however know whether this still applies so perhaps someone else can comment?

EdInvestor

You will get credited with NI years when at home looking after children if you are claiming child benefit.

MrMicawber_2

A bird in the hand being worth two in the bush I would pay the £37.75 - you know you are up to date then and you just don't know what changes the future holds on NI contributions. Who knows they just might put the contributions needed back up to the 40 or even 50 year mark if they think we're all going to live to 150 or the cost might rocket up.

(I am making a basic assumption that there will continue to be a state pension which sometimes you do wonder about).