Should I continue to pay Ni contributions?

Supersaint13

Wonder if anyone can help please?

I'm currently unemployed and have been claiming contributions based JSA, although this will stop at the end of July. My savings mean that I won't be eligible to continue to claim JSA as I will be over the threashold.

Whilst I am trying desparately to find a job, no luck so far, in spite of dozens and dozens of applications etc.

If, worst case scenario, I'm unable to find work, I'm 54 and can draw on my frozen works pension next April, which whilst it's not my preferred course of action does at least give me some flexibility; the amount of my pension will be sufficient for us to live on.

I am eligible in due course for a full state pension, having made more than the 30 qualifying years contributions required.

The question is, between now and next April, should I continue to make the fortnightly visit to the JobCentre to claim my NI contributions, or, given that I have the required qualifying years, just leave things as they are? Would not claiming them have any other impacts?

Any help with this would be greatly appreciated, thanks.

jamesd

Yes, you should. One reason is the potential effect on any new combined basic and additional state pension scheme that may be introduced in the future, the £140 a week proposal that you may have read about. Until the rules are known it makes sense to act as though it may make a difference.

Supersaint13

many thanks jamesd

Rodders53

Only real reason I see for it is to provide bereavement benefits for a partner which are based on a different no of contribution years formula. IF your pension provides for your partner and will be sufficient, I see little reason to keep paying NI (although signing on gets it 'for free').

You can always buy NI in a lump if you need later if the Govt. pension rules change - unless they change that rule too.

(I took early retirement at 53 and haven't paid NI since; but then I'm not looking for a job.)

whiskyman

By signing on and getting credits you will qualify for s2p. If as it seems you are neaqr retiremnt age this will be worth over £2.00 a week extra pension. If your retirment date is before the 6th April next year it is not worth it as your final relevant year was last year. This means this year does not count towards your pension as it will not be a full year.

Queries

Dear Supersaint13, please may I suggest contacting your local Citizen's Advice Bureau for advice (CAB). You can probably arrange an appointment over the 'phone at your local branch. (From personal experience, I would not ask advice online or via their helpline.) Talking to somebody face-to-face is the best way, wish you well!

jamesd

whiskyman, do you have a reference to support signing on causing S2P additional state pension payouts to increase? Last I knew it counted towards the basic state pension and not S2P.