Automatic national insurance credits

teralin

Does anyone know how the new pensions legislation will affect the automatic national insurance credits that are given to people over the age of 60 who are not in employment.

My last pension forecast dated 2003 stated that as I become of pensionable age at 63, they would automatically pay my NI contributions between the ages of 60 and 63. I currently have 23 NI qualifying years and I will need 30 under the new rules. I am wondering whether I can get away with buying only four further years worth of voluntary contributions and let the government pay for the final three.

If anyone has read anything about this aspect of the new law, I would be very interested to hear.

Many thanks

CIS

Does anyone know how the new pensions legislation will affect the automatic national insurance credits that are given to people over the age of 60 who are not in employment.

Being in employment (unless S/E) doesn't stop you getting Auto Credits , although they are only used if your earnings don't give you a qualifying year.

When do you reach state pension age ?

I had a quick can through the report but couldn't find anything to say whether the automatic credits are being kept or not.

teralin

June 2016. The powers that be must have considered the subject of auto credits. I think that they will phase them out eventually because of the future rises in retirement age.

DRS1

I asked someone at The Pension Service about these automatic credits and was told they were being phased out under the new law on the basis that you don't really need them if you only need 30 years of credits for a full pension. My SPA is in 2026 and I won't qualify at all - actually I rather gathered that if you weren't 60 already you probably wouldn't benefit but that was just reading between the lines.

The other thing I ws told was that it would be autumn of 2008 before they could do pension forecasts under the new law (assuming it is passed).

teralin

Thanks for your response. I believe the law was passed a few days ago.:j

teralin

Has anyone else heard or read anything definitive about the future of automatic NI credits between the ages of 60 and 65?

mrbnewc1

Hi

Basically, automatic NI credits will be phased out for men, in line with the increase in pension age for women from 2010-2020. This only affects men born on or after 06/04/1950.

Hope this helps.

Mrbnewc1

benny5

Hi

Just picked up on this, and would like clarification, sorry if I appear dumb.

My DOB is 01/03/1950 and currently have 38 qualifying years. Do I have to work to 2010 to qualify for maximum benefit.

Many thanks

Benny.

EdInvestor

benny5 wrote: »

My DOB is 01/03/1950 and currently have 38 qualifying years. Do I have to work to 2010 to qualify for maximum benefit.

Assuming you're a man retiring at age 65 after 2010, you will only need 30 years to get the full basic state pension.

It's not actually necessary to work to gain qualifying years.Payment of voluntary contributions will do the trick.If unemployed, NI conts may be credited for you free.

benny5

Thanks for the info.
Yes I am a man, shortly to be a redundant one, after 38 years service and 7 years away from being 65. As I don't rate my chance of further meaningful employment I am concerned about my pension entitlement, hence the question on contributions.

Regards

Benny.