Early Retirement

JamesT_2

Hi All

I am 63 and have just taken voluntary redundancy and decided to retire early. I am receiving a small company pension. I also have a small stakeholder pension which I have only been in for approx 18 months. I am yet to hear from them regards my options. I have a question which I have not been able to get answer to on the internet.

As I have decided to retire early and not seek employment do I have to inform any government department? My concern is about national insurance contributions. I have more than the required 44 years contributions for a full state pension when I reach 65 in July 2010 (I also know this requirement is changing in April 2010 to 30 years contributions)

I will not be seeking to claim job seekers allowance but do I still have to register at the unemployment office?

I will be talking to my tax office later to ensure my tax deductions are no longer on an 'emergency' basis, my pension provider says until I tell the tax office my incomes this is usual?

Sorry if these are daft questions but I do not want to go through an interview with the unemployment office if it is not necessary.

Thanks for any advice
JamesT

margaretclare

Hello James

Although you've decided not to seek employment you should still be entitled to contribution-based Jobseeker's Allowance and you should get your NI contributions credited to you.

Contact your local JobCentrePlus.

Regarding your stakeholder pension, you don't have to do anything with it unless you want to. You could convert it to an annuity but alternatively, you could leave it until you really need it, up to age 75! Or you could continue to add to it even if you have no earned income.

JamesT_2

Hi Margaretclare

Thanks for your reply, I will contact my local jobcentreplus. I thought you did not get jobseeker allowance if you had reasonable personal savings?
JamesT

margaretclare

No, contribution-based JSA is what you get for the first 6 months. As the name implies, it's based on your contributions and is not means-tested. When that runs out after 6 months that's when income-based JSA starts and that's when it becomes means-tested.

In any case, it's important to get your NI contributions credited to you, whether you're getting JSA or not.

Oblivion

margaretclare wrote: »

Although you've decided not to seek employment you should still be entitled to contribution-based Jobseeker's Allowance and you should get your NI contributions credited to you.

I'm a bit confused by this. According to the direct.gov.uk website, you need to be actively seeking work to qualify for Jobseekers Allowance ...

Who is eligible?

If you're out of work or working less than 16 hours a week on average, you may be able to get Jobseeker's Allowance.
You must be:

• capable of working
• available for work
• actively seeking work
• below state pension age

Dave.

gfplux

Be creative and get the money.

Errata

Sign on and get your JSA - you haven't a hope in hell of a job given the current economic climate.

tuggy12

margaretclare wrote: »

In any case, it's important to get your NI contributions credited to you, whether you're getting JSA or not.

Why is this important?

The OP has already said he has more than 44 years of contributions and anyway the last 5 years between 60 and 65 are credited whether you are working or not.

Also I'm sure JSA is not so straightforward when the redundancy is voluntary.

CLAPTON

to add

your income situation is not quite clear but
-if you have worked this tax year then its likely you are owed tax as your allowances assume you work the whole year
- if your pension (and only income?) is taxed BR you need to contact HMRC to have your allowance transferred.


tuggy12 has given the correct info about NI

McKneff

You presumably have worked all your life. Time to get a little back.
and you are entitled to it.

Oblivion

anniehanlon wrote: »

You presumably have worked all your life. Time to get a little back.
and you are entitled to it.

Are you speaking of a legal entitlement or a perceived moral entitlement? The OP has already stated that he is not seeking further work, so how can he be entitled to JSA?

Dave.