NI contributions: Do I have to pay them?

abbijoe

Having been in continuous employment since 1974 and therfore enough 'qualifying' years in for a future state pension (unless next government increase retirement age again!!):
Do I still have to pay NI contributions from my wage? And if not, how do I get my employer to not deduct them?

Regards

atush

If you work, you pay. If you aren't working, you don't have to make the voluntary ones.

And dont be all snide abt the govt. they actually lowered the years needed (I do realise they reduced from 40 something to 30 but then raised to 35 so an overall lowering).

People like to give a big old who ha and cr*p over govt but 35 years is less for a full basic SP then it used to be when you started working.

Plenty of things to whine abt in this world and that aint one..

Torry_Quine

Until you reach state retirement age then NI is still payable. Remember is not about building up towards your pension alone but goes towards lots of benefits which you could have needed or could need in the future. If you have been fortunate not to need any contribution based benefits then be thankful

atush

I am sure they managed to have use the nhs once or twice over a lifetime.

I dont use it much, but I do when I need it. Could be years between.

abbijoe

Thanyou. Am greatful for your input.

jamesd

Were you contracted out of the additional state pension for some of those years? Either in a workplace defined benefit scheme, like final salary, most of which are/were contracted out or yourself into a personal pension?

If you were contracted out you can continue to gain from more than 35 years until your income reaches the flat rate cap level. A person who wasn't contracted out will reach the cap sooner.

Given how many years you have worked it's quite likely that unless you were contracted out you will already have an entitlement greater than the flat rate cap and will gain nothing from more years. You will still have to pay full NI until you reach your state pension age. You can check this by getting a state pension statement that you can request online.

FatherAbraham

abbijoe wrote: »

And if not, how do I get my employer to not deduct them?

By working outside the UK, preferably in another EEA country, so that your UK uyears of social insurance will count towards any minimum insurance requirement for that country's own pension scheme.

Warmest regards,
FA

System

The question again shows that it would be better to separate the tax-paying and the pension-contribution aspects of NI.

JezR

NI is 12%. 11% goes to the National Insurance Fund, 1% goes outside to the NHS. That was a Gordon Brown legacy. Should really have put 1p on income tax instead ...

System

JezR wrote: »

NI is 12%. 11% goes to the National Insurance Fund, ...

But that's more than just the state pension?
Successive governments have encouraged people to regard their NI credits as building up pension rights, so it's hardly surprising that in this new pension-conscious age, people expect to be able to see the relationship between their pension contributions and the pension they buy.

What % of employee NI goes towards pensions?
What % of employer NI goes towards pensions?

Are these figures good value in terms of the pension they buy?

bigadaj

JezR wrote: »

NI is 12%. 11% goes to the National Insurance Fund, 1% goes outside to the NHS. That was a Gordon Brown legacy. Should really have put 1p on income tax instead ...

Do you have a reference for those figures, my interpretation has been that despite having a. Different name then NI and tax just go into teh government coffers. They may entitle you to particular benefits but that has no direct correlation with the sums that have been input and they certainly aren't ring fenced in anyway.