National Insurance / Pension Credit Question

fallen121

I've always wanted to ensure that I had accumulated enough National Insurance contributions to qualify for a full state pension, and courtesy of the online tool I can see that I'm finally getting there. I went to University in Scotland, where the courses are longer than in England, and didn't have full time work either before or immediately after University, so understandably there were some periods during my younger years where there were large gaps in my contribution history. I considered paying up my missing years at one point, but now that my employer is not obliged to let me go at 60 and I can keep working as many of my colleagues have to a point at which I feel ready to retire, I am going to make sure that I do have enough contribution years when I finally do go.

The point of this thread is to ask a question. Why am I bothering? My able bodied neighbour over the road who has spent the last 27 years sitting on his doorstep watching me hurry to work, sunning himself, reading, taking long walks with his dogs, playing football and badminton and claiming state benefits in between brief "work placements" which have never lasted longer than few days, recently "retired" (I'm not sure from what) on a full State Pension courtesy of Pension Credits. Another acquaintance, whose total work history (involving lots of instances of being fired and/or being made redundant who now claims they are "too scared" to look for work in case they are made redundant again) will also, courtesy of Pension Credits be retiring on a full pension even though their total work history over the course of their lifetime amounts to less than 5 years.

If Pension Credits are there to prop up, not just the sick, the disabled and those unable to work due to caring responsibilities but also those who CHOOSE not to work, why on earth is there this intense pressure to accumulate NI contributions to fund my state pension? I understand that Pension Credits are means tested and not available to all, but whilst I own my own home and my neighbour doesn't, it was always my understanding that it is the value of savings income which is the deciding factor, and that your home is discounted for the purposes of calculating this benefit. Unless, of course, the person concerned goes into a home.

Please tell me I dragging myself to work every day for a reason. My neighbour waved cheerfully at me this morning, before settling down in his chair with a cup of tea and the crossword. The dogs he has require a vast amount of exercise which he has both the time and energy to give them. By the time I get home tonight I'll be lucky if I have enough energy to raise a smile....

p00hsticks

fallen121 wrote: »

Please tell me I dragging myself to work every day for a reason.

Self respect ?

Linton

Would you be happy to have lived your life at the standard of living provided by benefits? What about the prospect of 30 years retirement at £159/week?

As to why you should get a full quota of NI years.....

If you have the money to retire early there is no need to work longer just to get the NI years. Paying voluntary contributions after you stop working is an astonishingly good deal. The extra State Pension it provides is equivalent to an index linked annuity rate of 30% compared with the 3% you can get from a pension company.

Perhaps you should focus on optimising your situation rather than worrying about other people's. High blood pressure before you are 60 wont help if you want a long and healthy retirement.

Malthusian

By the time I get home tonight I'll be lucky if I have enough energy to raise a smile....

Then see a GP or a therapist because that's got nothing to do with your neighbour.

As Linton said, thinking about your income post State Pension Age is sod all use if you don't have the physical and mental health to enjoy life after that point.

Have you obtained a new State Pension statement? (Thought I'd beat Xylophone to it.) Do you know what level of State Pension you're actually due to get when you retire? Due to the myriad of different systems in place it may be substantially more than Pension Credit once you have a full NI record.

Living on benefits is a miserable existence and working gives you the option of having a significantly more comfortable life, including when you're no longer able to, than if you spent your entire life on the tender mercy of the State.

I understand that Pension Credits are means tested and not available to all, but whilst I own my own home and my neighbour doesn't, it was always my understanding that it is the value of savings income which is the deciding factor, and that your home is discounted for the purposes of calculating this benefit. Unless, of course, the person concerned goes into a home.

[STRIKE]Savings Credit isn't available to those who reach State Pension Age after 6 April 2016 so this is pretty irrelevant to you.[/STRIKE] Scratch that, you were of course thinking about the deemed income on savings and investments over £10,000. You're right that your main residence isn't counted for this purpose.

xylophone

Thought I'd beat Xylophone to it.

Some posters are such spoilsports.....:D