Signing on for NI contributions only

xoranium

Hi
Since I've been denied JSA, its advised that I continue to sign on for Ni contributions.
My question is how much is this worth per week to my pension?
Thanks in advance

curty510

not sure of the amount it will contribute, but my OH was short on NI contributions when she had a child break(no benefits claimed), she was advised she wouldn't be entitled to any state pension when she retires if the shortfall wasn't met, we promptly paid the £700.

My advice would be to sign on for them, otherwise it might be a decision you regret later on in life.

London50

Each qualifying year on your National Insurance record after 5 April 2016 will add about £4.45 a week to your new State Pension

xoranium

Ok thanks
So its about £0.09 a week.
If I didn't sign on for 4 weeks and then i got a job I would then have to fork out £0.36 to make up the difference to be eligible for pension?

I ask because applying for jobs and signing on will cost me £8 a week... Travel costs and going online and having a phone. And since I receive no money whatsoever, I simply can't afford to go.

London50

Yes you are correct but you can top up once you have a job and {as it stands} as long as you have the min years payments you would get full state pension.

xylophone

Have you and your wife obtained a new state pension statement?

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

epitome

xoranium wrote: »

Ok thanks
So its about £0.09 a week.
If I didn't sign on for 4 weeks and then i got a job I would then have to fork out £0.36 to make up the difference to be eligible for pension?

I ask because applying for jobs and signing on will cost me £8 a week... Travel costs and going online and having a phone. And since I receive no money whatsoever, I simply can't afford to go.

London50 wrote: »

Yes you are correct but you can top up once you have a job and {as it stands} as long as you have the min years payments you would get full state pension.

I wouldn't say that is correct. If there is a 4 week shortfall on the year and you want to pay it off it will cost you circa £13.50 for each week.

Xoranium,
First of all why have you been disallowed JSA Conts?
Did you satisfy FCC or SCC for either year 13/14 or 14/15? If you don't know.. ask JCP to tell you.

What about the tax year April 6 2015 - April 5 2016 were you continuously working/did you claim any benefits? When you did work did you earn at least the LEL (Lower Earnings Limit) for that tax year, for every week you did work?

Have you been continuously employed since the 6th April 2016? Up to what date?, and what date did your JSA claim start from? i.e. how many gaps are there already in this 16/17 year?

How old are you?

How many fully paid up years do you already have?

You can fill a form online to get a NI records statement.

You can put the first year as when you were age 16, and the last year as 2015

You only need 30 years at present but my understanding is that this is going to rise to 35 years in the near future.

xylophone

Xoranium,
First of all why have you been disallowed JSA Conts?

https://forums.moneysavingexpert.com/discussion/comment/71592640#Comment_71592640

Londonsu

epitome wrote: »

I wouldn't say that is correct. If there is a 4 week shortfall on the year and you want to pay it off it will cost you circa £13.50 for each week.

Xoranium,
First of all why have you been disallowed JSA Conts?
Did you satisfy FCC or SCC for either year 13/14 or 14/15? If you don't know.. ask JCP to tell you.

What about the tax year April 6 2015 - April 5 2016 were you continuously working/did you claim any benefits? When you did work did you earn at least the LEL (Lower Earnings Limit) for that tax year, for every week you did work?

Have you been continuously employed since the 6th April 2016? Up to what date?, and what date did your JSA claim start from? i.e. how many gaps are there already in this 16/17 year?

How old are you?

How many fully paid up years do you already have?

You can fill a form online to get a NI records statement.

You can put the first year as when you were age 16, and the last year as 2015

You only need 30 years at present but my understanding is that this is going to rise to 35 years in the near future.

It already has as from April this year you can get a pension after 10 years but you will only get the new full flat rate pension of £155.65 if you have paid in or had credits for 35 years


Once you have hit 35 years contributions if working you will still pay NI but it wont be added to your pension, NI credits after this time wont be added to your pension. You will get a protected pension if (like me) you had already paid in more then 35 years before April this year


.https://www.gov.uk/new-state-pension/what-youll-get

metrobus

The new system is for each NIC year you have credited you get 1/35th of the state pension which is £155.65.

After 35 years credits you get no extra but eg if you only have 20 years NIC years you get 20/35 of it so £88.94.

You can buy NIC class 3 voluntary credit years for £733.20 per year, for each year at current rates you will get an extra £231.25 (£4.45 x 52 weeks)

However if you do not have large savings minimum income guarantee will top any shortfall up to the £155.65 basic rate pension.

Things are constantly changing and anything could happen in the future.

xoranium

I have been refused cont based due to being self employed for 3 years.
And just refused income based because my partner earns 127 a week. Average over 12 months but this is a zero hour contract and we have had periods of 3months or more with 0 income.

Still regarding the signing on.. At the moment I feel the money saved from not signing on will be better directed to feeding my son and keeping him warm rather than building my NI contributions that I won't see for another 21 years

Thanks for your posts