Question about state pension

BobQ

As I understand that rules a qualifying year is one in which you have paid NI on a salary of at least 52 times the lower earnings limit, that is £6136 in 2019/20.
My question is if you are planning to retire in say July 2020, and say in April -June you earn 52 times  the lower earnings limit for 2020/21,  does that mean 2020/21 is a qualifying year? Or must you earn in every week of that year?

drumtochty

No the last qualifying year is the year ending April before the persons retirement.

If the person retires in July 2020, the last qualifying year for NI contributions is April 2019 to April 2020.

Now it may well be that if you are paying Class2 NI you pay that in say June 2020 as you may not fill in your tax return till then but it is for financial year ending April 2020

zagfles

BobQ said:

As I understand that rules a qualifying year is one in which you have paid NI on a salary of at least 52 times the lower earnings limit, that is £6136 in 2019/20.
My question is if you are planning to retire in say July 2020, and say in April -June you earn 52 times  the lower earnings limit for 2020/21,  does that mean 2020/21 is a qualifying year? Or must you earn in every week of that year?

See https://forums.moneysavingexpert.com/discussion/5774173/earning-ni-qualifying-years-working-part-of-the-year/p1

zagfles

drumtochty said:

No the last qualifying year is the year ending April before the persons retirement.

If the person retires in July 2020, the last qualifying year for NI contributions is April 2019 to April 2020.

Now it may well be that if you are paying Class2 NI you pay that in say June 2020 as you may not fill in your tax return till then but it is for financial year ending April 2020

You're confusing "retirement" with "reaching state pension age". Otherwise good point - the year in which you reach state pension age doesn't count as a qualifying year, but it can do if you retire part way through the tax year but reach SPA in a later tax year.

BobQ

drumtochty said:

No the last qualifying year is the year ending April before the persons retirement.

If the person retires in July 2020, the last qualifying year for NI contributions is April 2019 to April 2020.

Now it may well be that if you are paying Class2 NI you pay that in say June 2020 as you may not fill in your tax return till then but it is for financial year ending April 2020

I was not talking about reaching SRA just stopping work in July 2021 and paying NI (Class1) on earnings up to June of tax year. Income beyond July would be unearned so I am clear about the tax  implications just wondered if that would count as a QY.  Sorry if that was not clear.
I will have a look at Zagfiles link.

BobQ

zagfles said:

BobQ said:

As I understand that rules a qualifying year is one in which you have paid NI on a salary of at least 52 times the lower earnings limit, that is £6136 in 2019/20.
My question is if you are planning to retire in say July 2020, and say in April -June you earn 52 times  the lower earnings limit for 2020/21,  does that mean 2020/21 is a qualifying year? Or must you earn in every week of that year?

See https://forums.moneysavingexpert.com/discussion/5774173/earning-ni-qualifying-years-working-part-of-the-year/p1

The thread seems to paint a confusing picture based on various peple's experiences. However, this if correct, provides some clarity.
https://www.thisismoney.co.uk/money/pensions/article-7873583/How-qualifying-years-state-pension-worked-out.html
Now do I believe an ex politician????

DairyQueen

BobQ said:

As I understand that rules a qualifying year is one in which you have paid NI on a salary of at least 52 times the lower earnings limit, that is £6136 in 2019/20.
My question is if you are planning to retire in say July 2020, and say in April -June you earn 52 times  the lower earnings limit for 2020/21,  does that mean 2020/21 is a qualifying year? Or must you earn in every week of that year?

Yes it will be a qualifying year providing that it is not the year in which you reach state pension age.

I have a couple of tax years on my NI record during which I only worked for the first few months but I had earned sufficient (above the lower earnings limit) for both years to qualify.

zagfles

BobQ said:

zagfles said:

BobQ said:

As I understand that rules a qualifying year is one in which you have paid NI on a salary of at least 52 times the lower earnings limit, that is £6136 in 2019/20.
My question is if you are planning to retire in say July 2020, and say in April -June you earn 52 times  the lower earnings limit for 2020/21,  does that mean 2020/21 is a qualifying year? Or must you earn in every week of that year?

See https://forums.moneysavingexpert.com/discussion/5774173/earning-ni-qualifying-years-working-part-of-the-year/p1

The thread seems to paint a confusing picture based on various peple's experiences. However, this if correct, provides some clarity.
https://www.thisismoney.co.uk/money/pensions/article-7873583/How-qualifying-years-state-pension-worked-out.html
Now do I believe an ex politician????

As I said in the above thread, Steve Webb's explaination is quite good but misses the important point that earnings above the UEL don't count.