RETIRING EARLY National Insurance Help

Izzy_Skint

Hello

I'm a lady of 56 years old and have paid my full 30 years on National Insurance contributions.

My health is poor and i have decided to give up work in december and live off my savings for the foreseeable future.

Question...Do i still need to pay any further NI contributions?

Thank you very much
Izzy

p00hsticks

If you want a 'full' pension, I'm afraid you may need another five years contributions, as you'll fall under the new rules coming in in April 2016, which require 35 years contributions to get the maximum 'flat rate' of around £148.

However, references to it being a 'flat rate' pension over simplify things in the early years, as there are deductions made from the standard amount for people who've been contracted out, and steps to ensure that those who would have been entitled to more under the current rules ( thanks to SERPS or S2P contributions) don't lose out.

I'm not an expert, but when you can get a forecast of what you'll be getting under the new rules (which I believe you can't at present but should be able to do in the near future), I think you'll need to consider if you'll get more by paying additional years contributions .... and that you may need to hang on until after April 2016 to do this.

BigAunty

The Direct Gov website will have information on how you can pay voluntary contributions and how to get an upto date NI contribution statement.

Have you looked into whether you are entitled to any sickness or disability benefits rather than burn through your savings? Look at the Direct Gov website which has information on Employment Support Allowance and Personal Independence Payment to see if you may qualify.

If you are a tenant, you may qualify for housing benefit depending on your capital.