State Pension

farquarpigmix

So far I have paid 39 years of NI contributions. If I work to the ripe age of 67 I will have paid 51 years. So I am paying a extra 16 years for no extra state pension as someone who pays 30, or 35 years. Been told I can't stop payments so to me its a rip off. is this correct saying I am unable to stop throwing money away?


If am unlucky to pass away nobody will receive my state pension. So another rip off.


If this has been asked before I apologise.

AnotherJoe

It's been said many times before.

Pollycat

Do you think your NI contributions go solely to pay for your state pension?

How is the NHS funded?

What about the people who have paid a lot of NI over the years because they are are on a high salary but don't have the minimum years of contributions to entitle them to the full state pension?
My OH had the minimum years (30) when he left employment.
However, the minimum has since been raised to 35 years so he won't get the full state pesnion unless he pays to top it up.
Over the years, he's probably paid far more NI contributions than a lot of other people who will get more pension than he will.

Do you think that is fair?
Is it a rip-off?

And no - you can't stop 'throwing money away'.

farquarpigmix

1) No its not fair.


2) I know NIC aren't just for state pension


3) Is it a rip off? Yes


4) Why is it we pay towards the NHS but have to pay for prescriptions, dental treatment & opticians?


5) Over the years, he's probably paid far more NI contributions than a lot of other people who will get more pension than he will. Rip off again.



6) And no - you can't stop 'throwing money away'. Spoil sport

Pollycat

farquarpigmix wrote: »

6) And no - you can't stop 'throwing money away'. Spoil sport

Well, now you know so you'll just have to suck it up - fair or not, rip-off or not.

Maybe you should look up the definition of 'rip-off''........

jamesd

farquarpigmix wrote: »

So far I have paid 39 years of NI contributions. If I work to the ripe age of 67 I will have paid 51 years. So I am paying a extra 16 years for no extra state pension as someone who pays 30, or 35 years. Been told I can't stop payments so to me its a rip off. is this correct saying I am unable to stop throwing money away?

For most of your working life you've been paying into a system that works like this:

1. Fixed increase in basic state pension for each year paying in or getting credits. Stopped increasing after 30 years.
2. Earnings-related SERPS then S2P portion. Carried on increasing as long as you worked, no cap.

So for most of your 39 years you were getting increased state pension from your extra working years above 30. And actually for most of them the cap wasn't 30 years for basic, it was over 40 but that ceased to matter when it was dropped to 30.

From 6 April 2016 there is now a fixed increase for each year of 1/35th of the flat rate level and no increase at all for anyone already above that flat rate cap level of about £155. So you're probably not continuing to accrue any more now unless you were contracted out. Those who are above the flat rate cap get triple lock up to the cap and CPI increases on the part above it.

The flat rate setup is a deliberate move to transfer pension payments from those with fullish working lives to those with minimal or just less paying in. A high percentage of them women with mainly credits. So a full working life low earner who would have seen maybe £190 a week under the old system would see just the £155under the new. Assuming a full working life in each of the systems.

Scrounger

farquarpigmix wrote: »

Been told I can't stop payments so to me its a rip off. Is this correct saying I am unable to stop throwing money away?

Not correct: you can stop paying NI by stopping working (eg by retiring) or becoming self-employed. :eek:
Alternatively, if your employer offers a Salary Sacrifice pension scheme then that can help reduce or possibly even eliminate your NI contributions.

I'm currently doing the latter until I am in a position to do the former. :beer:
Scrounger

atush

Have you looked into how much SP you will get? Will it be the new full rate (ie around 155/w) or have you been contracted out and will get less?

If door number 2, your extra years from now on of NI WILL buy you more state pension, up to the new full rate. around 4 quid per week for life for each extra year.

colsten

farquarpigmix wrote: »

1) No its not fair.

what would a fairer system [to everyone in society, not just to yourself] look like in your opinion, and how would you finance it?

farquarpigmix wrote: »

2) I know NIC aren't just for state pension

Why are you complaining then? How else would you insure yourself against unemployment and disability if not by paying some sort of an insurance premium? How would you suggest the working age benefits available to all in our society would be funded if not by the contributions of everyone of working age?

farquarpigmix wrote: »

3) Is it a rip off? Yes

Have you ever sat down and worked out the size of the investment you'd need to have to guarantee you an index-linked income for the rest of your life? How would you finance the required amount?

farquarpigmix wrote: »

4) Why is it we pay towards the NHS but have to pay for prescriptions, dental treatment & opticians?

with an appropriate increase in NI and/or taxes, all that could be provided for "free". I'd love to see you being the one one responsible to sell that idea to the electorate.

AllyMac

My partner and I will get the same SP.

He has worked minimum wage jobs his whole life and revived various tax credits / CB because of his kids. I've paid HR Tax for many years and get no CB. (salary sacrifice for CCVs though!)

Do I find that unfair?
Not in the slightest.

It's not a savings account for your retirement, it's a national insurance scheme. It's how it works and though there are doubtless pockets of unfairness, I see no issue with people paying according to their means - and I'm happy to do so.

Do you a refund if you had less than the average number of kids? Money back if you've been lucky not to ever need surgery? Etc etc...

farquarpigmix

Pollycat wrote: »

Well, now you know so you'll just have to suck it up - fair or not, rip-off or not.

Maybe you should look up the definition of 'rip-off''........

Just putting my eyes back in.