to pay or not to pay National Insurance?

Rosiepopp

After 37 years in the NHS I take early retirement at the end of May.:beer: I have received my pension quote, but on calculating my expected tax deduction, I am unsure whether I still continue to pay NI.
Are payments compulsory? and if I am able to opt out, does it affect my State Pension at 66?
Ta
Rosiepopp

zygurat789

Rosiepopp wrote: »

After 37 years in the NHS I take early retirement at the end of May.:beer: I have received my pension quote, but on calculating my expected tax deduction, I am unsure whether I still continue to pay NI.
Are payments compulsory? and if I am able to opt out, does it affect my State Pension at 66?
Ta
Rosiepopp

NICs are deducted from earnings, not pensions.
It may affect your pension at age 6? depending on the rules in force at that time.

jem16

Rosiepopp wrote: »

and if I am able to opt out, does it affect my State Pension at 66?

If you already have 35 years worth of NI contributions it probably won't affect your state pension. However through being in a contracted out pension you will not receive the full flat rate state pension as there will be a deduction. Continuing to work after 2015 when the NHS scheme loses its contracted status could earn you some extra state pension.

Rosiepopp

Thanks for that both of you.
It helps me to clarify the situation.
I don't have any choice to continue to 2015 unfortunately, as retiring due to ill health. Fortunately was at an age I could leave and take my pension
:T