Serious Question about if paying into a pension is worth it..?

p00hsticks

soffie wrote: »

It appears I will get 12 years NI contributions when we claim child benefit, which i will regardless of if he has to pay it back in tax, just for the NI contributions alone....

If he earns over £60,000 (the amount where he would need to pay the entire benefit back), the easiest way is to say when claiming that you don't wish to claim any money but just want the NI credits (I believe there is a box you can tick on the application to say this is what you want to do). And make sure it's you that claims it, not him, in order for you to get the credits.

soffie wrote: »

Do i get NI contribution credits even if i didnt pay any? I ask because i have a years worth of contributions for last tax year even tho i didnt pay any?
.

If you earn over the Lower Earnings Linit (currently £118 a week, or £512 a month) in a single emplyment then you get NI credits without having to actually pay NI. It's not until you reach the Primary Threshold (£166 a week, £719 a month) that you actually have to start paying NI. This might explaim why you got credits for last year (when the figures were slightly lower).
https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

soffie wrote: »

When we looked at hubbys pension forecast not too long ago it was only worth about £6000 a year. Which is naff.

Assuming you are talking state pension, the most it'll ever get to is around £8,770 (in todays terms) - so he needs to keep that personal pension going if you want more, as well as making sure that you have something

soffie wrote: »

I was just a bit shocked and horrified at how the system is set up to protect those on benefits but not those like me who are working (but part time)

People on benefits are (sometimes, not always) given NI credits becasue they are unable to work, not because they choose not to. However you are right in that the system needs an overhaul, because people are increasingly having 'job portfolios' of multiple part time or zero-hours contracts, and NI thresholds are currently based on single emplyment. So it is possible to be working full time but not get any NI credits because you are splittting you time across multiple jobs.

soffie wrote: »

offie;76791916]
I just wondered if nearer the time, yes admittidly i am talking when we are 50+, we stop the private pension focus on my NI voluntary contributions if i havent got enough/havent gone full time as it may be more worth our while?

You need to bear in mind that your husbands emplyer will also be contributing to his private pension, and so if he opts out he will effectively be taking a reduction in salary. By the time you are 50+, chances are that if you still need to make your record up, ther will be more financially effective ways of getting the money to do so. But that's long way in the future.

Dazed_and_confused

I was very shocked to see if your on Benefits, ie universal credit u get pension contribution credits, like very shocked

It appears I will get 12 years NI contributions when we claim child benefit

So in actual fact you are one of those people who will be on benefits and getting NI contributions credited

You need to bear in mind that your husbands emplyer will also be contributing to his private pension, and so if he opts out he will effectively be taking a reduction in salary

And he will probably have to pay more tax as well if he leaves the pension scheme.

jamesperrett

soffie wrote: »

It appears I will get 12 years NI contributions when we claim child benefit, which i will regardless of if he has to pay it back in tax, just for the NI contributions alone...

If he is only slightly above the threshold where he will have to pay the child benefit back it might be worth looking at increasing his pension contributions to avoid paying the tax.

Happier_Me

I think you're worrying about this at too early an age. You have plenty of time to return to work earning above the NI limit, to ensure you receive a decent state pension on retirement. Just bear the NI limits in mind when you do start working part time.

As an aside, do you qualify for and have you done this...

https://www.gov.uk/apply-marriage-allowance

Dazed_and_confused

She no doubt does but husband may not as she mentions possibility of having to pay back the Child Benefit so he may be ineligible if he is liable to tax at the higher rate.