Do I stop paying NI?

givememoney

I am reaching the big 60 in October.

I do not plan to give up work as yet. I have been told to write to the HM Reveue and Customs to tell them my plan so I stop paying NI contributions.

My question is this. Does it mean that any contributions I make over the age of 60 are not going to benefit me in anyway so it is money down the drain so to speak?

I want to defer my old age pension and take a lump sum later.

Is this the correct thing to do?

al_yrpal

Yes,

Everyone stops paying NI at 60, they won't take it from you anyway, and if you haven't enough years for a full pension, the years until you retire get credited as though you were paying.

If you plan on dying early, deferring your pension could be the wrong thing to do!

Al

seven-day-weekend

If you are working, it is 60 you stop paying them if you are female, and 65 if you are male.

http://www.adviceguide.org.uk/index/life/benefits/national_insurance_contributions_and_benefits.htm#when_do_you_have_to_pay_national_insurance_contributions

Errata

Why not use the money you'll save through not having to pay NI to top up your private pension contributions?
And Happy Birthday in advance.

LittleVoice

Make sure any employer registers the fact that you are over 60 (woman) or 65 (man) and provide evidence. Tell them specifically not to deduct NI contributions. Don't rely on them automatically stopping the deductions.

I mention this as I work through agencies now and have had to make a point of telling them otherwise they would have happily continued making the deductions (one did even though I notified them but have since corrected it).

millie

You need to get a certificate from the National Insurance department to give to your employer, I got one at in December last year. They send a form asking you to fill in to claim your pension, and a bit to fill in if you want to defer it. I think there was a phone number on that form that you could ring to get the certificate. It only took about a week for certificate to come.

LittleVoice

You can do it by getting the form, but if you present your birth certiificate (and a marriage certificate if you have changed your name since birth for that reason), then the employer can use that as evidence. You probably have the documents which can be available to your employer immediately rather than waiting for the certificate (which I do not have though I don't pay NI).

LittleVoice

al_yrpal wrote: »

Yes,

Everyone stops paying NI at 60, they won't take it from you anyway, and if you haven't enough years for a full pension, the years until you retire get credited as though you were paying.

If you plan on dying early, deferring your pension could be the wrong thing to do!

Al

As already noted, it's only women who can stop paying at 60.

Employers do deduct NI unless they are alert or have been alerted!

The only way you get credited with NI contributions is either to be registered as unemployed or, I believe, if you have carer responsibilities which prevent you working.

Deferring receipt of a state pension is a good idea unless you really need the money straight away and, as the OP is planning to continue working, they must be planning to continue living!

Jennifer_Jane

millie wrote: »

You need to get a certificate from the National Insurance department to give to your employer, I got one at in December last year. They send a form asking you to fill in to claim your pension, and a bit to fill in if you want to defer it. I think there was a phone number on that form that you could ring to get the certificate. It only took about a week for certificate to come.

Re the certificate about the NI, it was easy to phone up and get it. You then send it as said above, to your employer's pay dept as proof of not having to pay NI. But when you leave that employer need to remember to get it back from them so that if you do other work, you have the certificate to give to them. I've diarised for 2 years ahead when due to retire. I think it would be easy to forget to do this a couple of years down the line.

Hope this makes sense. Millie was right about everything. They send you a form 'About Your State Pension' 4 months before your birthday, and you have to claim your pension. I am deferring and I just ignored the letter - should I have done this, Millie? Am worried that I've done something wrong. Thought I could just claim when I retired and they would send me money?? :eek:

millie

I am deferring and I just ignored the letter - should I have done this, Millie? Am worried that I've done something wrong. Thought I could just claim when I retired and they would send me money?? :eek:[/QUOTE]

I also ignored the letter when I phoned for the certificate they sent me another form to fill in, to say I was deferring but I did not bother with that either.

ketherin

Advise please, I'm 54 and maybe offered early retirement from my company, I'm in a final salary pension plan and aware that I cant receive my pension until I'm 55.

But if i take the package do i have to continue paying any NI contributions ?

Thanks for your help