Opt out of state pension?

MEM62

Smb3088 wrote: »

Westv, maybe because that person won’t reach pension age...

In which case what you do or do not pay in NI is the least of your worries. Either way you will directly benefit from your contributions as it is likely that, if you have a life limiting condition, you will be making good use of the NHS' services.

sevenhills

lisyloo wrote: »

Most people are net takers.
If you are rich enough to help those more vulnerable/less able does that mean you don’t want to?

Its not a fair system though, if I was self-employed, along with all the other perks of being self-employed, no NI to pay once you have paid enough in.

System

MEM62 wrote: »

In which case what you do or do not pay in NI is the least of your worries. Either way you will directly benefit from your contributions as it is likely that, if you have a life limiting condition, you will be making good use of the NHS' services.

That's true, but it's a fair point about contributing to the pension element of NI. Supposing someone had a genetic condition that was virtually certain to mean they never reached say 40?


There are special rules about private pensions in such circumstances - are there really none for state pensions?

lisboa84

say you didn’t want to receive a state pension at retirement age.

For what reason would someone, at retirement age, not want to claim a state pension?

Clifford_Pope wrote: »

That's true, but it's a fair point about contributing to the pension element of NI. Supposing someone had a genetic condition that was virtually certain to mean they never reached say 40?


There are special rules about private pensions in such circumstances - are there really none for state pensions?

The original poster wrote say you didn’t want to receive a state pension at retirement age which insinuates that they will reach retirement age, but they just don't want to claim any pension when they get there.

Unless I'm reading it from a different angle

Prism

sevenhills wrote: »

Its not a fair system though, if I was self-employed, along with all the other perks of being self-employed, no NI to pay once you have paid enough in.

Someone who had their own limited company typically never pays anything towards NI. There has to be a cut off somewhere. Those in control of their own pay get to control their own tax

lisyloo

sevenhills wrote: »

Its not a fair system though, if I was self-employed, along with all the other perks of being self-employed, no NI to pay once you have paid enough in.

I do agree with you.


Have you tried to get a self-employed role?

MEM62

Clifford_Pope wrote: »

That's true, but it's a fair point about contributing to the pension element of NI. Supposing someone had a genetic condition that was virtually certain to mean they never reached say 40?

There are special rules about private pensions in such circumstances - are there really none for state pensions?

The payment of NI entitles you to a range of benefits provided by the state. It is a 'package' and they are not paid for separately in terms of taxation so, no, you don't get to pick and choose those that you do and do not want.

We all make use of the benefits in different ways as our circumstances and needs dictate. We do not all use all of facilities available to us all the time and some will certainly use more than others. As you cannot predict which of these you may need at any point in life then you would not be able to pick and choose anyway. However, you will be very grateful that they are there when you are in need of them. Perhaps the term 'National Insurance' is very apt.

You cannot compare any of this with a private pension. A private pension is a financial product. It is an investment that you make to provide for your future self. National Insurance is not.

Adly812

Thank you for those who politely answered my question in a productive manner. This sight is actually becoming quite notorious for people answering with personal opinion rather than just answering the question. A lot of people ask questions because they don’t know the answer, they are looking for assistance, I don’t get why some people have to be honestly nasty.

Personally I will not reach retirement age, fact. I will not argue now that other contributions for national insurance are paid for different reasons. But I asked too, if it was possible of opting out of contribution towards a pension and not receiving it. Council tax, tax etc was not my question, so comments above (Nick-C) is uncalled for.
Thank you for the information everyone bar a few

bostonerimus

sevenhills wrote: »

I would love to opt out, I have paid NI for over 40 years, well past the 35 years required.

Of course what is require for you to get the full personal benefit is not necessarily what is required to maintain the system so that you can be paid that benefit.

If you stopped working or left the UK and became an expat you could stop paying NI. I've been an expat for 31 years and this year I will make my 35th and hopefully final voluntary NI payment. I thought I was done after 30 payments until the rules changed, but I accepted the arguments about funding the system and as I'd paid in such a small amount over those 30 years, I couldn't really begrudge the extra 5 years.

System

MEM62 wrote: »

You cannot compare any of this with a private pension..

I was suggesting that perhaps you can, but only to the extent that there are special relaxations of the rules about taking a private pension in circumstances of terminal illness.


That's the only comparison I was making - a recognition that it might sometimes be fair to have very rare exceptions to rules for people in very special circumstances.


Obviously I wasn't suggesting that you could just opt out of a proportion of NI because you didn't want to contribute to the state pension.