Early Retirement and Future State Pension

Terrysdelight

Hello

My husband has just retired from his job after 30 years. He is only 50 so he will still need to add to his NI contributions for his state pension.

How would he do this? Should he get another job - should he sign on whilst looking for another job? I'm assuming his pension would wipe out any entitlement to money but I am wondering if he would get automatic NI credits for state pension if signed on?

GenghisKhan

Terrysdelight wrote: »

Hello

My husband has just retired from his job after 30 years. He is only 50 so he will still need to add to his NI contributions for his state pension.

How would he do this? Should he get another job - should he sign on whilst looking for another job? I'm assuming his pension would wipe out any entitlement to money but I am wondering if he would get automatic NI credits for state pension if signed on?

Why doesn't he just pay voluntary Class 3 NI contributions for the next 5 years? The cost is £14.10 per week.

Terrysdelight

GenghisKhan wrote: »

Why doesn't he just pay voluntary Class 3 NI contributions for the next 5 years? The cost is £14.10 per week.

Thank you. I didn't realise that could be done :-)

GenghisKhan

Terrysdelight wrote: »

Thank you. I didn't realise that could be done :-)

In that case this might be helpful https://www.gov.uk/voluntary-national-insurance-contributions/why-pay-voluntary-contributions

Previn

Terrysdelight wrote: »

Hello

My husband has just retired from his job after 30 years. He is only 50 so he will still need to add to his NI contributions for his state pension.

How would he do this? Should he get another job - should he sign on whilst looking for another job? I'm assuming his pension would wipe out any entitlement to money but I am wondering if he would get automatic NI credits for state pension if signed on?

Have you checked the state pension estimate online?
It may be that he has full 30 years contribution for old state pension as they included 2 years after leaving school.
If he wasn't contracted out it may be close to or more than the new state pension & you wouldn't need to make any extra contributions

molerat

^^^^^ This.
A pension forecast - using the on line system can be easiest - to see exactly what amount he has accrued so far is the first thing to do.
https://www.gov.uk/log-in-register-hmrc-online-services

Looking after grandchildren can be another nice little earner - MrsM has so far got £2.2K of class 3 credits

Sjmb

molerat wrote: »

^^^^^ This.
A pension forecast - using the on line system can be easiest - to see exactly what amount he has accrued so far is the first thing to do.
https://www.gov.uk/log-in-register-hmrc-online-services

Looking after grandchildren can be another nice little earner - MrsM has so far got £2.2K of class 3 credits

I had no idea that you could claim for NI credits for providing childcare. Thank you for this!

xylophone

Your husband does need to obtain his "starting amount" for new state pension.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/514265/how-the-new-state-pension-is-calculated-apr-2016.pdf

molerat

Sjmb wrote: »

I had no idea that you could claim for NI credits for providing childcare. Thank you for this!

https://www.gov.uk/government/publications/national-insurance-credits-for-adults-who-care-for-a-child-under-12

saver861

Terrysdelight wrote: »

Hello

My husband has just retired from his job after 30 years. He is only 50 so he will still need to add to his NI contributions for his state pension.

If he is only 50 he has about another 16 or 17 years to make up any shortfall. If he has full 30 years now and that gives him the current £119 per week then he only needs about another 8 years to make maximum pension.

Thus you don't need to go buying voluntary years at this stage.

bigjl

I would advise him to get some form of employment (unless health reasons rule this out)

Even one or two days a week, doing some kind of work that he enjoys. So it is not a chore but a pleasure to go to work for those couple of days.

I know loads of people from my old NHS Trust that have retired but still do a couple of days a week to keep their hand in so to speak.