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Paying NIC’s Direct from Drawdown?

GSP
Posts: 894 Forumite

I am 58, retired young and been in drawdown for a few years.
From the Gov site, my pension NI record is:
38 years of full contributions.
10 years to contribute before 5 April 2029.
3 years when you did not contribute enough.
Then on another page says:
Estimate based on your NI record up to 5 April 2019 is £151.67 a week.
Forecast if you contribute another 5 years before 5 April 2029 is £175.20 a week.
Okay, so it appears I have another 5 years to contribute to receive the full state pension (sure don’t help themselves when they state I have apparently made 38 years full contributions?).
From the site, I have 3 offers of contributions.
2016-17 year is not full. Pay a voluntary contribution of £581.40 by 5 April 2023. This shortfall may increase after 5 April 2021.
2017-18 year is not full. Pay a vc of £795.60 by 5 April 2024. This shortfall may increase after 5 April 2021.
2018-19 year is not full. Pay a vc of £761.80 by 5 April 2025. This shortfall may increase after 5 April 2021.
I am managing drawdown using tax free money and my full personal tax allowance on crystallised funds.
Is there a way I can make these state pension voluntary NI contributions direct from the crystallised portion of my drawdown fund, and not incur any tax. Or if there is another way?
Thanks
From the Gov site, my pension NI record is:
38 years of full contributions.
10 years to contribute before 5 April 2029.
3 years when you did not contribute enough.
Then on another page says:
Estimate based on your NI record up to 5 April 2019 is £151.67 a week.
Forecast if you contribute another 5 years before 5 April 2029 is £175.20 a week.
Okay, so it appears I have another 5 years to contribute to receive the full state pension (sure don’t help themselves when they state I have apparently made 38 years full contributions?).
From the site, I have 3 offers of contributions.
2016-17 year is not full. Pay a voluntary contribution of £581.40 by 5 April 2023. This shortfall may increase after 5 April 2021.
2017-18 year is not full. Pay a vc of £795.60 by 5 April 2024. This shortfall may increase after 5 April 2021.
2018-19 year is not full. Pay a vc of £761.80 by 5 April 2025. This shortfall may increase after 5 April 2021.
I am managing drawdown using tax free money and my full personal tax allowance on crystallised funds.
Is there a way I can make these state pension voluntary NI contributions direct from the crystallised portion of my drawdown fund, and not incur any tax. Or if there is another way?
Thanks
0
Comments
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You need to pay this from your usual income stream / savings, there is no way to do it wholly from tax free pension funds in your particular situation.
0 -
You could just pay them from the £12,500(?) pension income you are already taking.
Or start a small business and pay c£160/year in voluntary Class 2 National Insurance instead of voluntary Class 3.0
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