Total Pension Newbie, and Skint

saubryn

I'm 24, my husband is 32, and we have recently signed off and started self employed work. We are earning so little that we can get the full rate of tax credits.

We are below the threshold for compulsory NI contributions, so have a choice about paying them.

I assumed that the 8 or 10 quid a month each it would be for NI is far, far too little to make it worth putting in a pensions fund instead. Am I wrong? Neither of us have done a thing about saving for retirement yet. Would we be better off just paying the NI contributions for now until we start making more money?

Any advice appreciated!

umami

I was listening to radio4 this am. and the topic was N.I. contributions.Try https://www.bbc.co.uk/moneybox.

saubryn

Thanks!

I think we both would be best off continuing to pay if we're banking on a state pension. I'm assuming its not worth paying into another one until we enter proper employment or start making enough from the self employed work?

EdInvestor

Yes, definitely pay the NI contributions.You would have to save 100k to get the basic state pension (more for a woman) so it's a bargain.

saubryn

Wow, I hadn't realised the amount that was required to get anything worthwhile.

Thanks!