📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Paying NIC’s Direct from Drawdown?

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



Comments

  • molerat
    molerat Posts: 34,657 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 6 October 2020 at 11:20AM
    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.
  • 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.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.3K Mortgages, Homes & Bills
  • 177.1K Life & Family
  • 257.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.