National Insurance Contributions Whilst in Full Time Education?

Twointhebush

My wife has just checked her National Insurance contributions, and found that the years she was a full time student haven't got sufficient contributions. She worked part-time throughout those years.

Does this mean she needs to top up those years, or are full-time students exempt from paying NI?

Thanks,

Dazed_and_confused

Wouldn't she be better to check her State Pension forecast first?

Most people seem to be happy paying National Insurance if they have to i.e. are working, or want to make voluntary payments to increase their State Pension.

Or is she very altruistic?

If she does check her State Pension forecast make sure she reads it carefully, it can be quite confusing and gives an initial impression that £168.60/week will be payable when it actually depends on future (or retrospective) contributions being made.

Twointhebush

I don't quite understand? I thought that you needed to have a full contribution record to receive the full old age pension? And that if you didn't have enough contributions you could top it up?

Dazed_and_confused

I don't really know what you mean by a "full contribution record".

The new State Pension is based on 35 years however unless she's a teenager she will be under transitional rules which are more complicated than just needing 35 years.

Why not make life easier for yourself by getting her to check her current State Pension entitlement and how many years are need to get to the new State Pension of £168.60.

Without knowing that how do you know if there is any benefit in topping up previous years?

squirrelpie

Does this mean she needs to top up those years, or are full-time students exempt from paying NI?

Full-time students are not exempt, no. There have been periods when students of a particular age have been given credits though. As others have said, check her state pension forecast.

xylophone

https://www.pensionsadvisoryservice.org.uk/about-pensions/the-state-pension/ni-credits

You may receive/ have received National Insurance credits
if you were aged 16 – 18 before April 2010;
[/I

Your wife should check here.


https://www.gov.uk/check-state-pension

And https://www.royallondon.com/siteassets/site-docs/media-centre/good-with-your-money-guides/topping-up-your-state-pension-guide.pdf

Triumph13

Twointhebush wrote: »

I don't quite understand? I thought that you needed to have a full contribution record to receive the full old age pension? And that if you didn't have enough contributions you could top it up?

It's complicated by the transition from the old SP pre April 2016 to the new one, but if she is young enough not to have anything complicated before April 2016 such as S2P or periods contracted out then a 'full contribution record' will be 35 years for state pension purposes. You can get those through work, through claiming various benefits - particularly child benefit until the youngest child is 12 - or by paying voluntary contributions.
If she's a recent graduate and wasn't a mature student then you have to weigh up the likelihood of her building a 'full' record through work / children / benefits vs the likelihood of having to pay some voluntary years. Those part time years, if still recent enough to be able to top them up, may be a cheap way of making up a shortfall, but would be completely wasted if she ends up getting her 35 years anyway.