Do I pay less NI after I have qualified for full state pension?

DRHosking

I am 46 years old, according to my government gateway account I only need to pay NI for another year to reach my full State Pension allowance. I understand I will need to continue paying NI after this date as it pays for a lot more than just the state pension, however my question is will my NI contributions reduce as will I have paid all I need to be eligible for a full state pension? So is that element of the payment removed from my NI contributions? If it is not then do I gain any benefit from paying for a lot more years then needed to get my full state pension?

MallyGirl

you will not get a reduction and you get no extra benefit in pension terms for paying more. Overall the UK coffers for NHS, pensions and all the other things funded by NI will be better off for your further contributions.

Dazed_and_confused

No it won't be reduced.

You help run the country.

The easiest way to pay less NI is to earn less.

But paying your bills may then become an issue.

molerat

No. The only time you pay less NI, in fact you will pay no NI, is once you have reached state pension age. NI is purely another tax at 12%, or 2% on higher earnings, on top of normal tax.

marlot

No reduction, sorry. I guess you're being assessed under the old pension rules.



Under the new system it'll take people 35 years to get enough for a full pension.

jamesperrett

molerat wrote: »

No. The only time you pay less NI, in fact you will pay no NI, is once you have reached state pension age.

Or earlier if your only income is from a pension - I'm currently only paying NI because I don't have enough full years thanks to contracting out.

michaels

Had you contracted out before (selfishly putting your money in a private pot rather than supporting the country) then that pot would have been yours to keep and the NI you are paying now would have still got you a full SP at 67.

So you have been done up like a kipper. Join the club.

sevenhills

michaels wrote: »

Had you contracted out before (selfishly putting your money in a private pot rather than supporting the country) then that pot would have been yours to keep and the NI you are paying now would have still got you a full SP at 67.

So you have been done up like a kipper. Join the club.

I contracted out, so I have had a extra pension pot; but I will still get the full pension at 67 which is £164.34, it cannot be improved by more NI contributions.
Or have I got that wrong, and others with around 10 years to retirement age will get more?

Dazed_and_confused

If your start amount at April 2016 was less than the new State Pension then you cannot go over that figure other than for the inflation increases each year. So £164.35 become £168.60 in April I think.

unforeseen

People need to remember that the NI they are paying is to cover pensions and other items that need to be financed NOW. It is up to the people coming behind you to provide the finance for your pension

planteria

no doubt that is the way the system works unforeseen..

michaels wrote: »

Had you contracted out before (selfishly putting your money in a private pot rather than supporting the country) then that pot would have been yours to keep and the NI you are paying now would have still got you a full SP at 67.

agreed. i was sure i contracted out with a work pension with Allied Dunbar>Zurich.. i transferred the pension some time after i left the company, but i don't know what happened to the SERPS pot:undecided. i don't think it transferred with the 'main' pot.

i recall a period when we were all being told 'Contract Back In Quick - or Miss Out'. that was seemingly not good advice, looking back now.