State Pension forecast

Mlep

Have just carried out a State Pension forecast and was unhappy with the statement:
"You cannot improve your forecast any more"
From this I understand that although I will continue to pay into my State Pension for another six years there will be no benefit to me.
Q. Is there a way to stop paying the element of my NI that is my State Pension?
In my simple world this is theft, in that I am compelled to contribute for no benefit.

Mojisola

Mlep wrote: »

Have just carried out a State Pension forecast and was unhappy with the statement:
"You cannot improve your forecast any more"
From this I understand that although I will continue to pay into my State Pension for another six years there will be no benefit to me.
Q. Is there a way to stop paying the element of my NI that is my State Pension?
In my simple world this is theft, in that I am compelled to contribute for no benefit.

Your NI contributions don't just go towards your pension.

GunJack

Mojisola wrote: »

Your NI contributions don't just go towards your pension.

This exactly.... if you get sick would you want the NHS to cure you, for instance?? NI also goes to NHS, eligibility for some state benefits, etc......no theft/fraud involved.

Do you get any benefit from your car insurance if you don't make a claim??

Audaxer

Mlep wrote: »

Have just carried out a State Pension forecast and was unhappy with the statement:
"You cannot improve your forecast any more"

If it is forecast you are at the maximum £164 per week, that is presumably good news. I thought after 41 years of full NI payments I would be at the maximum, but in retirement I have another 6 years of voluntary contributions to make to get to the maximum.

Paul_Herring

You could always become eligible to not pay any NI by reducing your employment income to £162 per week.

All paying NI does it give you 'credits' towards your state pension, up to a limit - it doesn't actually pay for it.

Tom99

[FONT=Verdana, sans-serif]NI is essentially a tax on employment income under another name to make it seem more acceptable, not something set aside to provide state pensions, NHS or whatever.[/FONT]

p00hsticks

Mlep wrote: »

In my simple world this is theft, in that I am compelled to contribute for no benefit.

That's how taxation in a society works. Your contributions are going to pay todays pensions, not being put aside in preparation for your retirement.

Would you prefer that they kept a record of exactly how much NI you paid over the years and as soon as you had received that amount back in a combination of NHS treatment and/or benefits you were simply abandoned by the state ?

The chances are that one or two serious medical conditions would soon see your balance in the red even before you reached pension age......

Silvertabby

“ In my simple world this is theft, in that I am compelled to contribute for no benefit.
Originally posted by Mlep

If you are an average earner you will get back the State pension element of your NI contributions after just 5 years of retirement. After that, you are quids in. Some theft!

marlot

Mlep wrote: »

...
In my simple world this is theft, in that I am compelled to contribute for no benefit.

So ... if I have no children, I should be able to opt out of funding schools?
if I'm a pacifist I should be able to opt out of funding defence?
if I'm healthy I should be able to opt out of funding the NHS?



You can escape NI by earning less (there's a threshold) or by getting older (no payments when you're over your state pension age).

antrobus

Tom99 wrote: »

[FONT=Verdana, sans-serif]NI is essentially a tax on employment income under another name to make it seem more acceptable, not something set aside to provide state pensions, NHS or whatever.[/FONT]

Actually a small slice of NI does go to the NHS, and the remainder is set aside in the National Insurance Fund to pay for the state pension as well as other contributory benefits.

National Insurance Fund Accounts
https://www.gov.uk/government/publications/national-insurance-fund-accounts

Paul_Herring

and the remainder is set aside in the National Insurance Fund to pay for the state pension as well as other contributory benefits.

Yes, but that's for other people's state pension/benefits, not your own.

You don't have a pot that you contribute during your working life, and withdraw from when you retire as you would with either a defined contribution or defined benefit scheme.