How much NI to get pension

LULULU1

Hi all,
I know that you need to pay NI for 35 years but what exactly does this mean.

Does it mean you just have to have paid a small amount if NI (ie if you are part time) or is there a set amount per year you must pay in.

How would it work if you were part time for most of this years.

Is there a process where you can top up if you haven't paid enough in.

Reason for asking is my partner has worked part time for most of her life although now fulltime. She is currently 48 and we hope tp retire when she is 57

HappyMJ

LULULU1 wrote: »

Hi all,
I know that you need to pay NI for 35 years but what exactly does this mean.

Does it mean you just have to have paid a small amount if NI (ie if you are part time) or is there a set amount per year you must pay in.

How would it work if you were part time for most of this years.

Is there a process where you can top up if you haven't paid enough in.

Reason for asking is my partner has worked part time for most of her life although now fulltime. She is currently 48 and we hope tp retire when she is 57

You don't need to pay a penny.

You can check your NI history online.

Personally I have a limited company and that company pays me a salary of £8,060 per year. There is no tax or NI to pay on that payment yet I am credited with having paid NI contributions as that is above the Lower Earnings Limit of £112 per week. NI is payable on earnings above £155 per week.

As long as you've earned more than £5,824 per year (earning at least £112 every week) then you get NI credits. If you've got a child benefit payment you also get credits, if you claim JSA or ESA even if you get no payment due to your partners earnings you get NI credits.

A non-working partner can claim JSA credits only if they're out of work and looking for work. You get no money but you do get credits.

xylophone

Your wife should obtain a new state pension statement.

https://www.gov.uk/check-state-pension

https://www.gov.uk/national-insurance/overview

jamesd

LULULU1 wrote: »

I know that you need to pay NI for 35 years but what exactly does this mean.

It means that a person who has never worked or received credits before 6 April 2016 will need 25 years of working at above the NI lower earnings limit or receiving credits to receive the maximum flat rate state pensions.

For people who are not around 18 years old at the moment it is likely to be less than 35 years because the accrual rates of state pension were higher under the previous system due to the earnings-related portion.

LULULU1 wrote: »

How would it work if you were part time for most of this years.

So long as the earnings were above the lower earnings limit the year will count.

LULULU1 wrote: »

Is there a process where you can top up if you haven't paid enough in.

Yes if there are gaps within the last six years or for future years if not working or receiving credits. Some special cases can go back longer but those won't apply to your partner.

LULULU1 wrote: »

Reason for asking is my partner has worked part time for most of her life although now fulltime. She is currently 48 and we hope tp retire when she is 57

It is unlikely that she will need to do anything other than carry on as planned. To be sure she should get a state pension statement and compare her current entitlement to the flat rate maximum. Take the difference between the two, multiply by 35 and divide by the maximum flat rate to work out how many years they need to get to the full flat rate. This is because each year paying in from now on produces 1/35th of the flat rate increase until the flat rate maximum is reached.

singhini

HappyMJ wrote: »

You don't need to pay a penny.


Personally I have a limited company and that company pays me a salary of £8,060 per year. There is no tax or NI to pay on that payment yet I am credited with having paid NI contributions as that is above the Lower Earnings Limit of £112 per week. NI is payable on earnings above £155 per week.

As long as you've earned more than £5,824 per year (earning at least £112 every week) then you get NI credits. If you've got a child benefit payment you also get credits, if you claim JSA or ESA even if you get no payment due to your partners earnings you get NI credits.

A non-working partner can claim JSA credits only if they're out of work and looking for work. You get no money but you do get credits.

Thanks for explaining this, I've often see these figures quoted on the GOV websites but not really understood their relevant

TBC15

Does the LTD Company need to make a profit? And could you pay the whole of your wages into a SIP?