Is NI still compulsary ?

dreamon100

I've been working abroad for several years and was paying voluntary NI contributions. Then the pensions people told me I had enough years in to qualify for a full pension (35 yrs at the time) so I stopped paying in.
Now I will possibly be working back in the UK, will I have to start paying NI again ?
It seems too good to be true that once everyone has the requisite number of years in ( now 30 I believe) you don't have to pay anymore.
I'm sure I can remember workmates still having to pay until retirement and complaining bitterly that they were having to carry those that didn't want to work.
Thanks.

chesky369

Dream on dreamon100 - you will still have to pay until your reach retirement age even though in years to come you will be entitled to a full pension with only 30 years contributions.

jd87

Yep you have to keep paying. Remember NI doesn't just pay for pensions. Part of it goes to NHS and social security too.

hugheskevi

I've been working abroad for several years and was paying voluntary NI contributions.

You are a victim of the political risk surrounding pensions unfortuantely, and due to pension policy changing all those voluntary contributions are effectively a complete waste of money as you will end up with a lot more than 30 qualifying years but there is no benefit for anything beyond 30 :embarasse

Pollycat

hugheskevi wrote: »

You are a victim of the political risk surrounding pensions unfortuantely, and due to pension policy changing all those voluntary contributions are effectively a complete waste of money as you will end up with a lot more than 30 qualifying years but there is no benefit for anything beyond 30 :embarasse

jd87 wrote: »

Yep you have to keep paying. Remember NI doesn't just pay for pensions. Part of it goes to NHS and social security too.

hugheskevi, as jd87 points out, NI contributions cover more than just your state pension. :cool:

Batchy

if you dont contribute anything it doesnt matter, but it does matter id you have a private pension. when we talk of pension credits, you get rewarded for doing nothing in your healthy years.

The government should reward the workers.

it should not feel obligated to paying for "things" on retirement other than a roof heat and food, if people have chose not to live a vested interested in their retirement over the years. then they should pay the price.

People need to realise they need to provide for retirement.

marklv

dreamon100 wrote: »

I've been working abroad for several years and was paying voluntary NI contributions. Then the pensions people told me I had enough years in to qualify for a full pension (35 yrs at the time) so I stopped paying in.
Now I will possibly be working back in the UK, will I have to start paying NI again ?
It seems too good to be true that once everyone has the requisite number of years in ( now 30 I believe) you don't have to pay anymore.
I'm sure I can remember workmates still having to pay until retirement and complaining bitterly that they were having to carry those that didn't want to work.
Thanks.

NI is a tax, just like any other, and you do need to pay it while you are working. You only stop paying it when you actually retire.

Niggles

I don't think marklv is quite right. NI may be a tax but unlike income tax you do stop paying it once you are passed state retirement age if you are still working, not simply when you retire.

marklv

No - NI is a tax on earned income only. Pension income and investment income are not NIcable. Please don't give the government any ideas!!

See here for a relevant question: http://www.theanswerbank.co.uk/Business-and-Finance/Question692404.html

hugheskevi

hugheskevi, as jd87 points out, NI contributions cover more than just your state pension.

Pollycat, this was in regard to voluntary class 3 NICs, which unlike other classes of contributions, count only toward bereavement benefits and Basic State Pension.

Errata

marklv wrote: »

NI is a tax, just like any other, and you do need to pay it while you are working. You only stop paying it when you actually retire.

It stops when people reach retirement age, not when people retire. They can carry on working until they're 90 if they want to 50 but won't pay NI once past the statutory retirement age.