Another NI question

M3_Sussex

I retired three months ago. I am 54 and am wondering if I should be making minimum NI contributions to maintain my future pension benefit??

sleepless_saver

Whether it's worthwhile or not depends how many years NI contributions and/or HRP you already have. Personally I wouldn't bother if I had 30 years or more as it looks like that is all that will be needed to get full state pension for someone your age in the future.

You can get a pension forecast - which I am pretty sure also gives you info on the number of years you've contributed for - from the Pension Service website.

M3_Sussex

OK, thanks. I just checked their web site and found the following:

Basic State Pension
Entitlement to the basic State Pension is dependent on the number of qualifying years you have earned over your working life.

Qualifying years are based on the NI contributions you have paid, been treated as having paid or been credited with during your working life.

Working life
Your working life is the period over which you have to have met the contribution conditions for the basic State Pension. It is normally:

* 49 years for men

Looks like I fall short!!

sleepless_saver

but it's more complicated than that - see below from the pension service website which is where the 30 years I quoted comes from.

Following the publication in May 2006 of the White Paper “Security in retirement: towards a new pensions system”, the Government has introduced the Pensions Bill setting out the way it intends to change the law to give effect to the proposals for changing the entitlement conditions for the State Pension for people who reach State Pension age on or after 6 April 2010.

Basic State Pension will still be based on qualifying years built up through paid, treated as paid or credited National Insurance contributions but the proposed changes are designed to increase the number of people who receive a full basic State Pension. The Bill seeks to make a number of changes which include:

* gradually increasing the State Pension age from 65 to 68 between 2024 and 2046
* reducing the number of qualifying years needed for a full basic State Pension to 30 for people who will reach State Pension age on or after 6 April 2010. At the moment women need between 39 and 44 years (depending on their date of birth) and men need 44

sleepless_saver

And also, it's currently 44 years for a man to get full state pension - they credit the other 5 years to bring it up to 49, don't ask me how this works! see leaflet

M3_Sussex

Thanks a lot for that. I think I'll give them a ring and see exactly where I stand as I also took a couple of years off in 2000 and 2003.

Pollycat

I'm in the same situation, after taking early retirement almost 4 years ago when I was just 50.

I'm (I think) 3 years short and did intend to pay volunary contributions to ensure my full state pension but after reading about the proposal to reduce the number of qualifying years, I decided that I'd wait it out and see what happens.

Polly

seven-day-weekend

If you reach State Retiremnet Age after April 5th 2010, the law is changing so that you only have to pay 30 years' worth of Contributions to receive full State Pension. (It hasn't changed yet).

The existing rule is that you have to pay for 44 or 39 years depending upon your gender.

I personally would get a State Pension Forecast, see how many years you've paid and if you need to pay any more to bring you up to 30 do so.

My retirement date is January 2010 so I have had to pay for 39 years and have paid Voluntary Contributions for 2 of the 3 years needed to bring me to 39 years.

Here's the link to get a Pension Forecast:
http://www.thepensionservice.gov.uk/atoz/atozdetailed/rpforecast.asp

Hope this helps

M3_Sussex

seven-day-weekend wrote: »

Here's the link to get a Pension Forecast:
http://www.thepensionservice.gov.uk/atoz/atozdetailed/rpforecast.asp

Hope this helps

OK, thanks. I have done it and now have to wait for a PIN to arrive in the post.

CLAPTON

the existing rule is that you have to have credited either 44 for a man and 39 for a women and NOT paid.

Women in particular can be credited for time spent looking after children and if a carer.

Both can be credited if claiming JSA.
Men are credited for 5 years if they dont work after 60
best to get the forecast and read the details.

CIS

Men are credited for 5 years if they dont work after 60

Men working after 60 will be credited if they are earning but dont earn enough to accrue a qualifying year.