NI Contributions

bfgun

I have read that to qualify for the full state pension you need to have at least 35 years of full contributions.


I have 38 years full contributions and am 10 years from retirement.


If I pay a further 10 years contributions do I get a bigger weekly state pension? I understood the max to be £168 per week?


If not, why does anyone choose to continue paying NI after 35 years of full contributions?


Thanks for your help.

Dazed_and_confused

I have read that to qualify for the full state pension you need to have at least 35 years of full contributions.

You have misunderstood. The 35 years doesn't apply to you, that is just for people starting their journey to State Pension recently. You are under transitional rules.

If I pay a further 10 years contributions do I get a bigger weekly state pension? I understood the max to be £168 per week?

Possibly, possibly not. Have you actually checked your State Pension forecast on gov.uk? If so what does it say? The full details not just the first line. If not you can check it tonight and report back.

NB. The max could be as high as £300. But it could equally be £168.60

If not, why does anyone choose to continue paying NI after 35 years of full contributions?

Most people need a job to survive, paying National Insurance is a by product of that. If you can manage without a job, or with just a very low paid job then you don't have to pay National Insurance.

bfgun

Many thanks for your reply, very helpful.


I have checked my forecast, it says I am estimated to receive £165.11 as of 5 April 2019.


If I contribute another year before 5 April 2031 I will get £168.60.


No mention of that figure increasing regardless of whether I pay more than 1 more year.


I find pensions so confusing!

molerat

That figure cannot increase beyond the £168.60, except for the annual inflation increase. Any further years working will not add to your pension.

bfgun

So where does the money go or can I tell my employer not to pay it?

Paul_Herring

bfgun wrote: »

So where does the money go or can I tell my employer not to pay it?

The money goes to paying towards things like the NHS, and for state benefits for those less economically active. Thus it's not something you can opt out of paying, unless you're not actually earning enough yourself to be required to pay it.

Your paying NI doesn't actually, technically, pay for your future pension - only an entitlement to it, which is capped, so you can't go over that cap.

bfgun

Thank you. That makes things much clearer to understand.


Thanks everyone for replying and explaining so quickly.