Another NI question

seven-day-weekend

http://www.dwp.gov.uk/mediacentre/pressreleases/2007/jan/nat-05-07-160107.asp

http://www.saga.co.uk/magazine/money/paullewis/paulewis16.asp

But have a look at these links.

nelliebag

Mary_Hartnell wrote: »

Hi Nellie,

Lucky you for being able to retire at 48.
I retired at 56 and had a conversation with the tax man that went like this:
- So what do I get for all this, in my case self employed, national insurance?
"Nothing".
- So it is just extra tax on my part time activity ?
"I think you understand the situation very well".

I find I am now working just to pay my car expenses etc. It is not really worth working to be taxed at 40% plus another 8 - 9 % in NI contributions.
This is a shame really, because we cannot be complete bumbos to have become so "rich" by the time we retired and we probably still have something to offer the economy.

You can defer your state pension and it gets bigger for each year, BUT you might die without getting it at all.

You can put your earnings and possibly roll over some of your pension income into another pension fund, which can be outside your estate until the age of 75.

A cousin of mine found herself as one of a team of a dozen nurses, whose job was to keep an elderly ga ga heiress alive as long as possible - that sort of prospect fills me with horror.

If you have got any tips for avoiding 40% IHT and nursing home fees, let me know!

Thanks Mary
sounds like its all gloom and doom - still they say working helps keep Alzheimers away so it might save some money on the nursing home!!!
nellie

EdInvestor

keaskin wrote: »

I have 14 years hrp and when I got forcast they say I will not get any pension as you need so many payed years I cant remember exact number for hrp to count,
I have the option of buying more years to acheive this.most women dont know this and think they will get some pension and there is a time limit for buying extra years but not sure what it is. does anyone know.
hope this helps some women reading this and they get a forcast in time

IIRC you need to have paid 10 years for the HRP to kick in.You can pay up to six years in back NI, but at present this has been extended to 10, because of a computer foul-up a few years ago.

I believe this regulation may change after 2010 when the new 30 year rule comes in, as they will count NI conts differently in a way which is much fairer to women.The new rule is on its way through parliament and is widely expected to be approved.

www.thepensionservice.gov.uk is the place to go for details and forecasts.

CIS

For reference HRP rules can be found here
http://www.hmrc.gov.uk/manuals/nimmanual/nim41300.htm

IIRC,

HRP cannot reduce the number of years required for a full pension to below 20(rising to 22). A person needs a minimum of 25% of the requisite years to get a minimum pension, so, a woman retiring at 60 with 19years HRP could get a minimum pension with 5yrs of conts and a full pension with 20yrs.

M3_Sussex

M3_Sussex wrote: »

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

Well, I received the PIN this morning but am still unable to get a forecast. It is mandatory to complete details about your ex spouse. I haven't seen her for 28 years so how am I supposed to know her address and NI number. Very frustrating!!:mad:
Looks like I'll have to phone them after all!!

seven-day-weekend

M3_Sussex wrote: »

Well, I received the PIN this morning but am still unable to get a forecast. It is mandatory to complete details about your ex spouse. I haven't seen her for 28 years so how am I supposed to know her address and NI number. Very frustrating!!:mad:
Looks like I'll have to phone them after all!!

Will it not let you complete the forms without this information? What if you've never been married?

M3_Sussex

Yes it does. I did do that however, knowing nothing about pensions I wasn't sure what relevance the spouse information would have.
Would you say the forecast I did as a never married person would be accurate?

CIS

If you haven't seen her for 28years then assuming the divorce was back then and you've worked and paid NI then its extremely unlikely to make any difference to your pension.

M3_Sussex

CIS wrote: »

If you haven't seen her for 28years then assuming the divorce was back then and you've worked and paid NI then its extremely unlikely to make any difference to your pension.

No, I didn't actually get around to divorcing her until 2000. Will this make a difference?

CIS

It can do , it depends on your own NI record. Have you always worked and earned a reasonable wage ?