Impact of reducing hours

Shelle

Apart from the obvious reduction of salary, what would be the impact of reducing my working hours? I have been trying to decipher the Government website for guidance on this, but all I can find out is how much pension I am currently forecast and how much National Insurance I have paid (in years). Does reducing my hours (either to 30 hours or 22 hours) have any impact on my state pension and Nat Ins contributions and anything else? According to my forecast I have 31 years and require a further 2 years to reach max pension. I do not receive any benefits.



I appreciate that specific advice cant be goven but a general idea would be appreciated.

pinknsparkly

You need to earn more than £166 per week to pay NI which then counts as a qualifying year for state pension. Happily, even if you're on minimum wage (£8.21 for over 25s) and work the lower number of hours you are considering (22 hours a week) - you'll still earn more than £166 per week and so will accrue qualifying years.

Dazed_and_confused

As explained by pinknsparkly it won't necessarily affect your State Pension but earning less will reduce the amount you can expect to get from your company or auto-enrolment pension.