National insurance, not working but where do I fit in

EdInvestor

IIRC anyone on low earnings would get an S2P pension as though they were earning 12k p.a.

CIS

IIRC from when I used to do it, your right. Everyone gets S2P at the minimum level of #12K or therabouts, the top of the 1st band. (except S/E, MWRRE and non-employed people not in receipt of benefits)

The 8K is very nearly the differnce between the LEL and the top of the 1st band

EdInvestor

It's a government freebie for the low paid.

Anyone (especially women) in a part time job should make absolutely sure that they are getting more than the "lower earnings limit" (around 4-5k at present?) and paying NI contributions, because not only does this mean you are in for the full basic state pension, it also means you will get a freebie extra S2P pension added on, the same as someone would get who is earning double your pay at 12k.


Actually this matter could do with more publicity from Martin IMHO. :money:

CIS

Or claiming a qualifying state benefit, or receiving HRP with a child under 6.

margaretclare

Couldn't agree more.

I feel passionately that - even in the 21st century - women don't give their pension provision the attention that it deserves. For my generation, I am one of a minority of retired women who gets SRP in my own right. I also get some SERPS for the years that I wasn't in the NHS pension scheme. Women then were told that they'd get a pension through their husband.

Even though things have changed so drastically, women are still not thinking enough about their own pension provision. Do as EdInvestor suggests!!

Margaret Clare

happyhero

My wife works at the local school catering and only works 2 hours a day, 5 days a week so she only earns about just over £2600 a year, so what should she do, try and get more hours which they will not give because the job does not require it, or get another job?

What will she get if she only earns this much?

What if she was to give the job up and be unemployed like me, couldn't she just pay £7.55 per week like I could to get a full state pension? This seems to me the cheaper route to a full state pension.

There are lots of people who are unemployed and do nothing, what would they get in relation to this £82 figure? Surely they get something from the state?

CIS

On #2600, she'll get nothing, unless she get Child Bnenefit for a child under 6 , in that case she'll accrue a little Additional Pension (around #2 per week) for each full tax year that she claims Child Benefit and the child is aged under 6 yaers.

She could choose to pay the #7.55.

Only unemployed people get a weekly NI credit on benefits , as do most disabled people on benefits.

Are you getting working Tax Credit, if so your wife can get an NI credit from that for every week where she earns less than #82.
http://www.hmrc.gov.uk/manuals/nimmanual/NIM41235.htm

happyhero

So would an unemployed person on benefit get a full state pension at the end due to the credits?

As for the working Tax credit, we cannot take advantage of that because one of the stipulations is you have to work a minimum of 16 hours a week, and wife only does 10, annoying.

I think we are both going to be stuck with paying the £7.55 each, can't see in our situation anyway to get help with anything or do it any other way. We seem to miss out by a little with everything, eg 10 hours a week but would need 16, don't earn enough, need 4 to 5k but only get £2600. I must say I am a little scared as to whether I can maintain enough profit from shares to live on, but I will just have to try my best, and hope. The situation has probably come along a little too early but I really want to give it a go.

CIS

Not if they where on benefits for their entire life,

Theres two conditions that need to be satified for a full pension

1) You need a minimum of 25% of the requiste number of years for a minimum state pension

2)You must have at least 50 class1/2 contributions on record prior to 1975, or have had a had class 1/2 earnings equivalent to 52 8 teh LEL in any one tax since 1975.

The only way this rule could be waived is as a a widow(er) or divorcee,claiming on their ex/late spouses NI, where if the ex/late spouse would meet the 2nd criteria, the surviving partner is also deemed to meet the condition.