Not paying NI Contributions

johntb2868

I recieve a police pension after retiring after an injury on duty and I am now part time self employed. I am 36.

I honestly believe that, because of my pension, I will not recieve a state pension because by the time I retire it will be means tested. I have paid approximately 20 years worth of NI contributions but I don't want to take the risk of paying more into something which I firmly believe I will get nothing from.

I know that the current law states that I will recieve a state pension but laws change.

John

Caroline73_2

Couldn't every 36 year old with a private pension argue the same thing?

seven-day-weekend

I think you're basing an awful lot on something that may never happen.

What if it isn't made means-tested? I feel that it will not be. You've then got only a 2/3 state pension when you could have had a full one.

Your choice of course, but I personally believe in keeping my options open.

Baz_2

If you are self emplyed all you need pay is your £2 odd per week to qualify for your pension and your class 4 based on profits which you cannot avoid anyway.

Not sure what the point is to be honest. Save £110 per year is all your gaining.

johntb2868

Thanks for your replies. There are some valid points.

I look at it this way.

When I started paying NI contributions 21 years ago the reitremant age was 65 Now it's 67 and people are living longer. I believe that the age to qualify for a state pension will be at least 70 when my time comes.

The arguement about means testing is only my own opinion but I honestly beileve it will happen and because if that I am not willing to pay out now.

Of course I may be wrong but I am willing to take the risk and put the money away now into something in which I know will give me at least my money back. If I am wrong then I have paid enough to qualify for something PLUS what I have saved in my private little nest egg.

There are many people like me who don't believe in paying into something you have no control over.

EdInvestor

Class 2 NICs (around 2 pounds a week, bargain of the year) not only entitle you to the state pension but also contributions-based incapacity benefit (not means tested). Why would you want to count yourself out of that?

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seven-day-weekend

Absolutely Edinvestor. It seems a no-brainer to me.

Tharweb

EdInvestor wrote: »

Class 2 NICs (around 2 pounds a week, bargain of the year) not only entitle you to the state pension but also contributions-based incapacity benefit (not means tested). Why would you want to count yourself out of that?

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Incapacity Benefit was replaced by Employment Support Allowance from 27 October 2008 but the contirbution conditions (NI based) are the same.

I agree it's a no-brainer though, you only have to claim it for a couple of weeks to recoup the cost of your annual class 2 stamp.

System

It has always been argued that the NI that you pay is for the people currently collecting state pensions and not for your future pension.

Pollycat

johntb2868 wrote: »

I recieve a police pension after retiring after an injury on duty and I am now part time self employed. I am 36.

I honestly believe that, because of my pension, I will not recieve a state pension because by the time I retire it will be means tested. I have paid approximately 20 years worth of NI contributions but I don't want to take the risk of paying more into something which I firmly believe I will get nothing from.

I know that the current law states that I will recieve a state pension but laws change.

John

NI contributions don't only cover state pensions.
What about the other things that your NI contributions give you?
You mention an injury on duty that necessitated your early retirement - maybe an injury serious enough to require hospitalisation or medical treatment at the least.
How do you think that's funded? How much would treatment/operations have cost you if we didn't have the NHS (funded from YOUR NI contributions)?
Do you have to pay to see your doctor?
No.

johntb2868

As far as I am aware, my NHS treatment is funded by my tax - not my national insurance.