Do I stop paying NI?

zygurat789

seven-day-weekend wrote: »

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

For Class 1 & Class 2 National Insurance, you do not pay from the first monday after your retirement birthday, however, for Class 4 the first year you do not pay is the tax year when you are of retirement age on 6 April.

Tuesday_Tenor

Ketherin

Your entitlement to state pension will depend upon 30 years' NI contributions. If you haven't made these you may want to continue to pay NI contributions voluntarily.

To check out whether you qualify for state pension , and when you will receive it, see:

http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/index.htm

sleepless_saver

ketherin wrote: »

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

You don't pay NI contributions on an occupational pension (but as another poster said, if you have less than 30 years NI contributions it may be in your interests to make up the shortfall).

mrgibbson

ketherin wrote: »

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

No sure exactly what you mean. I assume by taking early retirement you mean you're stop working too?

If you only pension income will be your finanal salary pension contributions, you only pay income tax on those and no NI.

Primrose

As long as somebody has paid sufficient NI contributions to qualify for a full State pension there is no point in continuing to pay as you won't get a bigger pension.
To avoid any confusion about this, write to Department of Work & Pensions and get confirmation in writing that you are fully qualified. Government agencies seem to be in such a mess at the moment that I wouldn't rely on any information provided over the phone.

Any private occupational pension you may draw is completely disconncted to NI contributions. You could be receiving an early occupational pension and find that when you come to State retirement age you don't qualify for a full State pension because you haven't made enough contributions - so if that's the case you may have to go on paying NI contributions after you've retired early until you've paid a sufficient number to qualify.

PennyForThem_2

Primrose wrote: »

As long as somebody has paid sufficient NI contributions to qualify for a full State pension there is no point in continuing to pay as you won't get a bigger pension.
To avoid any confusion about this, write to Department of Work & Pensions and get confirmation in writing that you are fully qualified. Government agencies seem to be in such a mess at the moment that I wouldn't rely on any information provided over the phone.

You can get a state pension confirmation on the internet via www.gateway.gov.uk

You need to know your national insurance number and when you got married (if you did) and date of birth.

It wasn't instant because they post you a secure code so took me 7 days but I can now go back and get it anytime I want instantly.

stilernin

Primrose wrote: »

As long as somebody has paid sufficient NI contributions to qualify for a full State pension there is no point in continuing to pay as you won't get a bigger pension.
.

Whilst I understand that this thread is about retiring or not, I want to add a point about not paying NI.

I relocated a few years ago, age 54, and decided not to work for a year or so whilst I settled in. Not needing an income for that period and already having 30yrs contributions, I didn't notify 'the system' that I wasn't working. After 2 years, I'd been in work and had been made redundant, so I felt I had a legitimate reason to go to the Job Centre to 'sign on' whilst I looked for work.

At this point, I was advised that I had not made sufficient contributions over the previous two years to enable me to receive Job Seekers allowance. The fact that I had over 30 years previously counted for nothing, They only look back over 2 years. Actually, because I had too much capital behind me, I would not be entitled to anything anyway, except NI contributions, which I would only need if I were to claim JSA in the future, which I couldn't claim as I had too much capital....................... etc etc. :rotfl::rotfl:

fanlightfranny

I’m self-employed on a very low income (from the business). My low income would exempt me from paying NI. I have however kept paying, on the assumption that I will be eligible for ESA (Incapacity Benefit), should the need arise….the need arose. It was a dreadful experience…..they passed me fit for work, so no benefit was forthcoming.
I’m in receipt of an occupational pension (having been retired on health grounds over 20 years ago). I wouldn’t qualify for Job Seekers Allowance. I’m male, and have 43 years NI contributions. My pension forecast shows I will receive a full pension.
Due to a mix up by the ESA people, I have a bill for £86.00 for outstanding NI. I’m tempted not to bother paying. I’m currently awaiting for an NI Exemption Application Form to arrive. Other than my social conscience, what is the point of paying? Even with my occupational pension…I’m pretty poor. I think there are others, who are in a better position to prop up the system.