Will you get a state pension

Mikeef

Hello,

I have a friend who left school before they finished their exams and has never worked. They have never claimed any benefits and just lived with/off their parents.

As they have never paid any national insurance and never claimed any benefits, what will happen to their state pension? Will they still get one?

My friend is 30 and I doubt they will ever work or claim any benefits.

Many Thanks

Mikeef

Aegis

Mikeef wrote: »

Hello,

I have a friend who left school before they finished their exams and has never worked. They have never claimed any benefits and just lived with/off their parents.

As they have never paid any national insurance and never claimed any benefits, what will happen to their state pension? Will they still get one?

My friend is 30 and I doubt they will ever work or claim any benefits.

Many Thanks

Mikeef

If he's not paid any class 1 or class 2/4 (i.e. employed or self employed) National Insurance payments, then he will be ineligible for the state pension as it currently stands. He may be eligible for income support if he's in dire need, but that's all.

If he wants a state pension but doesn't work, he'll need to pay class 3 NI contributions to bring his record up to date. This can be backdated a few years (the number eludes me for the moment) and is simply charged at a flat rate per week.

Of course, he could always get a job and not worry about this anywhere near as much. What's the plan when his parents get too old to support him any more?

hugheskevi

If he's not paid any class 1 or class 2/4 (i.e. employed or self employed) National Insurance payments, then he will be ineligible for the state pension as it currently stands. He may be eligible for income support if he's in dire need, but that's all.

He would have 3 year's of starter credits, so get 10% of the pension wouldn't he?

Aegis

hugheskevi wrote: »

He would have 3 year's of starter credits, so get 10% of the pension wouldn't he?

Quite possibly, that's the first I've seen of that particular benefit though, so I can't say for sure.

McKneff

If he starts to pay for his NI now (as he is 30) he will have enough credits by the time he is 60 to claim a full pension.

That, of course, is under present legislation, it will probably be completely different by the time 30 years has elapsed.

Why does he not work, he is using resources that other people are paying for.

Blobby8_2

Are your friends parents rich ? Maybe if your friend expects to inherit property he will not actually need a pension.
If he is "of independant means" why would he work ?

dunstonh

if the friend is female then some credit could be earned there if she has children.

Dick_here

Always 'a friend' isn't it !

RichandJ

!!!!!!_here wrote: »

Always 'a friend' isn't it !

No, I think you're quite wrong and very harsh here !!!!!!.

Sometimes it's a relative.

gadgetmind

Aegis wrote: »

If he wants a state pension but doesn't work, he'll need to pay class 3 NI contributions to bring his record up to date. This can be backdated a few years (the number eludes me for the moment) and is simply charged at a flat rate per week.

Class 2 is cheaper but HMRC will start sending tax returns as you have to tell them you're self employed.

dtsazza

gadgetmind wrote: »

Class 2 is cheaper but HMRC will start sending tax returns as you have to tell them you're self employed.

Interesting - is it legal to register yourself as self-employed in this case, and then (correctly) fill in a tax return for £0 income?