Final Salary Pension - National Insurance Contributions

gordonc1960

Hi Can someone advise me please. I am about to retire from the police after 30 years service, having paid into the final salary pension scheme. I know that I will be liable to pay 20% tax on my monthly income, but do I also have to pay NI Contributions, and if so, how much.

I will be 49 when I retire.

Valli

Are you married?

Anyway I would suggest you read this

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/PensionsAndRetirement/index.htm

And don't forget you should still have a tax code so that you don't pay tax on some of your earnings.

Have you not had a pensions forecast?

gordonc1960

Hi, Yes I'm (still) married.:rotfl:

gordonc1960

Valli wrote: »

Are you married?

Anyway I would suggest you read this

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/PensionsAndRetirement/index.htm

And don't forget you should still have a tax code so that you don't pay tax on some of your earnings.

Have you not had a pensions forecast?

I know how much I'll get as a lump sum and how much I will receive each month. I know that I will not be taxed on the married man's allowance part - and 20% thereafter, but I don't know from whats left each month (about £1890) how much will be deducted as NI.

Valli

Damn! Thwarted again. There was me thinking I might have found a bloke with some cash:rotfl::rotfl:

Has that site been any good? I did think you only paid NI on earnings...

Valli

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015904


This page says that you pay NI on earnings up until state retirement age... a pension however is not earnings. I would THINK no - but it's unclear.

What are you going to do with all that free time then? I have some decorating needing doing:rotfl:

KathysBoy

gordonc1960 wrote: »

Hi Can someone advise me please. I am about to retire from the police after 30 years service, having paid into the final salary pension scheme. I know that I will be liable to pay 20% tax on my monthly income, but do I also have to pay NI Contributions, and if so, how much.

I will be 49 when I retire.

You do NOT have to pay NI on pension income.

Valli

I thought not...
But what about entitlement to state pension - mind you with a police pension doubt he'll need it.

CLAPTON

there are no NI contributions on pension income

pension income is taxed exactly like any other so if your sole income is your pension then you get the first 6035 tax free then pay 20% on the rest

if you get a job then you will be liable to NI on the earnings and tax of course

if you have paid NI for 30 years then you will get the full state pension when you reach retirement age (which is taxable income)

married man allowance applies to people born before 1935

bloaty

CLAPTON wrote: »

there are no NI contributions on pension income

pension income is taxed exactly like any other so if your sole income is your pension then you get the first 6035 tax free then pay 20% on the rest

if you get a job then you will be liable to NI on the earnings and tax of course

if you have paid NI for 30 years then you will get the full state pension when you reach retirement age (which is taxable income)

married man allowance applies to people born before 1935

Doesn't the 30 yr NI rule come in from 2010 and before that date men have to have 44 qualifying years to receive maximum state pension?

CLAPTON

bloaty wrote: »

Doesn't the 30 yr NI rule come in from 2010 and before that date men have to have 44 qualifying years to receive maximum state pension?

yes but the OP says he's 49... so he will only need 30 years