How much do i need to earn?

ALB10N_2

Hiya.....

How much per year do i need to earn to qualify for a 1st class 'Stamp'? (NO! I'm not sending a letter )

I'm 52 & took voluntary redundancy with a pension of around £630 per calendar month. I want to earn at least enough each year to get a 'stamp'.
I pay tax on the pension, obviously, and am working some days here or there during the year.
My tax code for work is 'BR'
My NI code is 'A'

Any help or pointers would be appreciated.

Cheers

BiLL

sleepless_saver

The earnings threshhold is £5435 a year, above this you need to pay Class 1 NI contributions. However if your earnings are above the lower earnings limit which is £4680 a year, you will be treated for benefits purposes as if you had paid the NI contributions. See link .

As you are 52 now, you will only need 30 years NI contributions to get your full state pension.

ALB10N_2

Thanx for replying Sleepless,....

Still not sure about some things.

Does the pension i receive count as 'earnings'? Or do i have to earn the threshhold on top?
What i'm really asking is.... If i didn't work at all between now and the age of 65, would receiving my works pension (£7,500 per annum) & paying tax on that get me the stamps?

Sorry for being so brainless, if not for the pension it would be easy to work out. I think?

Cheers

BiLL

EdInvestor

Why do you want to pay the stamp?Is it for your state pension, or for benefit entitlement? As you will retire after 2010, then you only need 30 years NI.How many have you clocked up already?

It is always possible to pay voluntary contributions if you are not working (and not seeking work) if necessary.

ALB10N_2

Hi Ed

I want to receive the full state pension (100%).
It's my understanding that i need stamps for all but 5yrs from when i left school up until i'm 65. I left when aged 15 & have worked all my life,... apart from a few months here or there. I took VR & a pension from my last full time employer in 2005. I'm sort of sure that i now need 8 more stamps.
I'm assuming i have at least 35 stamps as of now.

Does that make sense?

jem16

ALB10N wrote: »

I'm assuming i have at least 35 stamps as of now.

From 2010 the requirement for a full state pension reduces from 44 years for men and 39 years for women to 30 years for both.

As you already have 35 years and are due to get your state pension after 2010 you have enough already so you don't need to woryy about it.

Linton

ALB10N wrote: »

Hi Ed

I want to receive the full state pension (100%).
It's my understanding that i need stamps for all but 5yrs from when i left school up until i'm 65. I left when aged 15 & have worked all my life,... apart from a few months here or there. I took VR & a pension from my last full time employer in 2005. I'm sort of sure that i now need 8 more stamps.
I'm assuming i have at least 35 stamps as of now.

Does that make sense?

Wrong understanding - if you reach 65 after 2010 you only need 30 years worth of stamps to get the full state pension. If you have got 35 now, you are fine. You can find out how much pension you have so far earned from:

http://www.thepensionservice.gov.uk/

ALB10N_2

WHOOPEEEEEEE!!!!!!!

Thanx sleep, ed, jem & linton........

Must've been changed recently from when i was advised

That's a weight off..... Just need to earn enough to keep me in the black now. Phewww!!

One more question, if i may....
My wife is 60 in April with 27 qualifying years (stamp 1)..... How/will this change affect her? ie: Would 3 stamps give her a full pension? I'm just sorting out the money (£4,300) to buy the extra 12 she would have needed.
I've registered with thepensionservice, but won't get to know for a while.

Cheers all.

BiLL

jem16

ALB10N wrote: »

One more question, if i may....
My wife is 60 in April with 27 qualifying years (stamp 1)..... How/will this change affect her? ie: Would 3 stamps give her a full pension? I'm just sorting out the money (£4,300) to buy the extra 12 she would have needed.

As your wife will retire before 2010 she will need the 39 years to qualify for a full pension.

ALB10N_2

Oh well.......

Cheers for the advice & pointers.....

(",)