will I get maximum state pension with no further NI contributions

pem

Hi all

I took voluntary redundancy at the start of 2018 at age 61.
Myself and my wife have enough savings and her pensions for me to be able to afford to retire now.

Below is my state pension summary.
I am reading it right that I will get the maximum state pension amount that I can and that I will not lose out in any way if I no longer work and pay no further National Insurance contributions



Your State Pension summary
You can get your State Pension in June 2022. Your forecast is
£182.47 a week. £793.42 a month, £9,521.02 a year

Your forecast
is not a guarantee and is based on the current law
is based on your National Insurance record up to 5 April 2018
does not include any increase due to inflation
£182.47 is the most you can get

You cannot improve your forecast any more.

If you’re working you may still need to pay National Insurance contributions until 14 June 2022 as they fund other state benefits and the NHS.

AnotherJoe

I read it the same way you do.

Dazed_and_confused

Yes, as you over the standard "new" State Pension amount you cannot increase* your entitlement any further irrespective of any additional National Insurance contributions.

* If you check your account again after 5 April you should see the new value following the annual inflation increase.

OldMusicGuy

Yes, you are right. You will get that even if you pay no more NI. And if you do pay more NI, it will not go up.

I am in the same situation btw, I have an SP entitlement of around 10,500 pa at age 66 and have retired at 60, not working so not paying any NI. It will not be impacted by the fact that I may have 6 years of no NI contributions. If I did work and NI was automatically deducted by my employer, afaik I could not get that back.Nor would my pension increase.

drumtochty

OldMusicGuy wrote: »

I am in the same situation btw, I have an SP entitlement of around 10,500 pa at age 66 and have retired at 60, not working so not paying any NI. It will not be impacted by the fact that I may have 6 years of no NI contributions. If I did work and NI was automatically deducted by my employer, afaik I could not get that back.Nor would my pension increase.

If you did more work you would get a great feeling as you have paid more into the NHS from your ongoing NI contributions. Great that you will do that!!!!!!!!!!!!!!!!

OldMusicGuy

drumtochty wrote: »

If you did more work you would get a great feeling as you have paid more into the NHS from your ongoing NI contributions. Great that you will do that!!!!!!!!!!!!!!!!

Indeed, and the pension forecast makes that point - just because you have paid enough for your pension, it doesn't mean you should stop as NI pays for more than just pensions.

pem

I have already worked for 45 years and paid full NI contributions for those years, receiving not one penny in benefits.

Doctors have recently notified me I have serious health problems which will greatly reduce my life expectancy, so I fully intend to retire now so that I can make the best of the time I have left.


I do not want any sympathy for my health problems (thats why I did not mention it in original post) but I also do not need postings criticising my decision to retire after 45 years hard work and paying into the system.

Save your criticism for people who have never worked and others who are milking the system without contributing a penny.

michaels

I had max state pension by age 45 and this will not increase no matter how much NI I pay between now and 67. Not contracting out was a big mistake.

OldMusicGuy

pem wrote: »

Save your criticism for people who have never worked and others who are milking the system without contributing a penny.

I don't think anyone was criticising you. Drumtochty was responding to my post which was just confirming that you don't have to pay any more NI if you don't work. I was just stating that if anyone works after obtaining the maximum pension then their employer will still deduct NI.

I wasn't intending any criticism as I have retired at 60 and am paying no NI or tax. So, like I said, I am in a very similar situation from an NI perspective.

mgdavid

pem wrote: »

I have already worked for 45 years and paid full NI contributions for those years, receiving not one penny in benefits.

Doctors have recently notified me I have serious health problems which will greatly reduce my life expectancy, so I fully intend to retire now so that I can make the best of the time I have left.


I do not want any sympathy for my health problems (thats why I did not mention it in original post) but I also do not need postings criticising my decision to retire after 45 years hard work and paying into the system.

Save your criticism for people who have never worked and others who are milking the system without contributing a penny.

Answers will be based only on what info is provided, we are not psychic! You seem to be taking it personally which is unnecessary given we were not in posession of all the facts.

DairyQueen

michaels wrote: »

I had max state pension by age 45 and this will not increase no matter how much NI I pay between now and 67. Not contracting out was a big mistake.

You are not psychic so not your mistake. As I recall, members of DB schemes had to contract-out whether they wanted to or not. Members of some DC schemes had the option to contract back-in.

In the 80s, there was chatter amongst my colleagues about the optimum time to contract back-in. Apparently, some algorithm could be applied that would max-out the benefits of both. I can't recall the details but age and salary were factors.

Some who opted to contract back-in will be worse off as a result, but how could they have foreseen how the rules would change? It's a lottery.

As has been mentioned, NI pays for more than pensions. I'm not sure if it's ring-fenced but it's just another tax.

The point of collectivism is to share the costs of essential safety nets and services across the population. If I ever have a major illness, and the chances increase dramatically as we age, then I (like OP) will be relying on the contributions of younger people to foot the bill. That's how the system works. We have paid to support those in need throughout our working lives. If we are lucky then the quid pro quo is delayed until our final decades.

Just me musing about the only two certainties: death and taxes.

Think I need a cuppa.