ESA, NI & medical pension

LindsayO

Not sure if this is the best board for this but it is about benefits (and pensions and disability)
I just got a statepension forecast that says if I work to 65 and keep paying NI I will get the full pension. However I have a progressive condition and I am finding it hard to keep working and anticipate that I will need to retire early for medical reasons. Now I am very lucky to have a pension that pays out right away if I am medically retired. It is a two tier pension. The lower tier is paid if they judge I can't do my job but could do something else. The higher tier is paid if they judge that I can't work at any job

If I get the lower tier then if I'm eligible on health grounds I could ESA. In this case would ESA pay my NI? IF I get the higher tier I would not get any ESA as my income would be too large for ESA to get paid so does that mean I wouldn't get my NI paid? I'm not complaining. I know that I am much more fortunate than most people with my same health problems, I'm just trying to understand the way that the benefit system works

de1amo

from what i gather if you have 30years of Ni paid you would stop paying???be interesting to know

de1amo

another point of interest are you in the position to make extra voluntary payments to add to you pension before you decide--i always wish i had before i was medically retired

seven-day-weekend

If you get ESA it would pay your NI.

I think I'm right in saying this, but even if you don't get any money for ESA because your Pension is too high, providing you are have the entitlement, ESA would still pay your NI. Someone will correct me if I'm wrong.

Bear in mind that you will only need 30 years worth of NI for your full State Pension.

de1amo

i probably should start a new thread--but if you dont get esa or right to it-which lots are finding-because you are paid a pension before retirement age do you have to continue paying Nİ from the medical pension??--even when youve paid 30 years

LindsayO

de1amo and seven-day-weekend,
thanks for your replies. I am hoping that what seven-day-weekend says is correct.

de1amo,
I currently have 16 years of NI payments, if I worked to 65 I would have 31. So if I am medically retired I won't have the full 30. I am now working part-time due to ill health/disability and can't afford to pay extra top-up NIs, but if what 7-day says is true and I qualified for ESA then I wouldn't have to.

If I am medically retired and I don't qualify for ESA, then I might still be allowed to pay top-up NIs to get the full state pension, but I don't think I could afford to

de1amo

the esa is set to exclude people with pensions--the old style İncapacity benefit allowed you to have savings and a pension but Mr blair/brown closed that avenue--i dont know how esa view income and covering Nİ credits--on the old İB you used to be able to work part time--up to 12 hours or 92 pounds and stil get all the ni credits as well as the benefit--i dont know anything about esa--its worth investigating

---

i was talking about buying extra pension years before you start claiming it--i reckoned at the time i retired that loaning the money to buy the extra years would have more than be paid for by having an increased pension for life --your union rep might be an avenue of advice!

LindsayO

de1amo wrote: »

the esa is set to exclude people with pensions--the old style İncapacity benefit allowed you to have savings and a pension but Mr blair/brown closed that avenue--!

It does depend on how much of a pension you get. If I get the lower tier pension I would still get some ESA payments (if I qualified on health grounds)

leemack

i take it you're talking about deferring state pension. if you are deferring you can't do this and claim esa, it's classed as deprivation of income and they would take the state pension into account as if it was income and you would be refused.

LindsayO

leemack wrote: »

i take it you're talking about deferring state pension. if you are deferring you can't do this and claim esa, it's classed as deprivation of income and they would take the state pension into account as if it was income and you would be refused.

I don't think that is what I'm talking about. As I understand it deferring the state pension means not taking the state pension at normal retirement age, in my case 65, but waiting and taking it later (don't know why you would do this)

What I am talking about is retiring early sometime before I reach 65 (I'm 50 now) due to ill health. Say I had to retire at 52 due to ill health. At this point I might qualify for ESA (if I passed the physical and was on the lower tier of my medical pension). IN this case I would be drawing my works pension and receiving ESA. At that point (when I'm 52) I would only have 18 years NI, so I would not qualify for a full state pension when I reached 65, unless the additional NI contributions were paid either by me or through being on ESA. I'm not sure if either of these is possible

leemack

sorry, misunderstood, that'll teach me to read things properly!

you can receive contributary esa and your ni would be paid. I think that even if your pension nils your esa then your ni conts would be paid, as long as you made your claim it becomes a conts only claim (i think).

Whether you receive any contributary esa depends on the level of your pension. if your pension is less than £85 a week you keep full contributary esa (as long as you qualify on capability for work grounds) if your pension is more than £85 a week then half of the amount over £85 is deducted from your ESA each week.