State Pension: Option to Stop paying once reaching 35 qualifying years

MrE1

If I were to retire once I reach 35 qualifying years for national insurance (living off savings until I reach 68) would I still need to pay National Insurance to keep the eligibility for Full State Pension. Or could I have years of not contributing to NI once I reach 35 qualifying years.

I believe the answer to be I could have years thereafter without paying National Insurance, but I thought it diligent to check it out with this forum rather than assume. 

MallyGirl

35 years is only relevant if you have no NI history prior to 2016. Most people are under transitional rules which mean that the number of years you need depends on a variety of factors.
NI doesn't just pay for your state pension so you need to keep paying it as long as you earn enough and are under state pension age. You don't pay NI on pension income (just tax).

QrizB

MrE1 said:

Hi MallyGirl, If you have an answer to my 35 qualifying year query regarding state pensions feel free to respond to it if you wish.

MallyGirl has replied already?

Re your question:

MrE1 said:

If I were to retire once I reach 35 qualifying years for national insurance (living off savings until I reach 68) would I still need to pay National Insurance to keep the eligibility for Full State Pension. Or could I have years of not contributing to NI once I reach 35 qualifying years.

35 years is a red herring, unless you were born after 2000. Everyone born before then is subject to the transitional arrangements, which means you could need more than 35 full NI years, or fewer.

What does your State Pension forecast say, specifically?

https://www.gov.uk/check-state-pension

dealyboy

From what I understand @MrE1 the 35 years of full NI contributions or credits to qualify for a full new state pension applies only to those who have that record post 2016, it therefore applies only to those reach state pension age after 2051. If that is your situation it would appear that you and those around 50 in 2051 could cease paying NI for the purposes of the state pension at that point.

In the meantime I would say that the state pension has an almost 100% chance of changes that would affect this.

Of course there are many who currently have 40+ qualifying years but need to gain a few more to achieve the full qualification, this is due to transitional rules for those having qualifying years prior to 2016.

The state pension forecast is your friend, but needs to be interpreted carefully.

edit: @QrizB only saw your post after I submitted.

juniper21

Hi
By 2010 I had 31 full years of UK contributions and I've lived and worked overseas since then (but not full years)
The latest forecast for my pension amount states I will receive a full pension because, I was told today, by Future Pensions that if you attained the required number of years before the law changed in 2016, then you are still eligible for the full pension and can disregard the figure of 35 qualifying years as I am exempt from it.
Is this correct?
I'm due to get my pension next month and don't want to claim it if I need to buy more years.

On another note, it's better that I don't claim my French Pension until 2026.  If I apply for the UK one, which I must do from France, would that mean I'd be claiming the french at the same time?  
The French retirement organisation aren't very well informed on the duality of it all
Thank you
 

molerat

Disregard 35 years because it doesn't apply to you as you were born before 2000 and are on a transitional scheme needing as many as it takes, 31 may or may not give the full new pension.  Reports here suggest anything between 29 and 50 depending on personal circumstances, I had 42 and couldn't get there.  You need to check your forecast to see how much you are due to get and if you need to top up, the forecast clearly states everything you need to know.

pinnks

You are correct in that you claim your pensions via the pension authority in your country of residence but why would you defer when you claim your French pension?  The fact that pension age in each country may be different is irrelevant.

France will ask you to complete a form providing them with your UK information and will then approach DWP International Pensions for your UK record, which they will then use in the aggregation calculation required under UK.  They will also provide your French record to the UK, though if you already have more than 10 UK years, the 2 calculations required under the EU regulations always give identical results, so are not needed for UK purposes.

You will get your UK pension from 66 and you French pension from pension age in France.

juniper21

molerat said:

Disregard 35 years because it doesn't apply to you as you were born before 2000 and are on a transitional scheme needing as many as it takes, 31 may or may not give the full new pension.  Reports here suggest anything between 29 and 50 depending on personal circumstances, I had 42 and couldn't get there.  You need to check your forecast to see how much you are due to get and if you need to top up, the forecast clearly states everything you need to know.

My forecast online states that I can expect to receive the full state pension with 31 years and don't need to top up as the amount is about £220
 I don't believe I was ever in a contracted-out scheme.
A forecast sent by post in 2014 (which I have) states the same but I just wasn't sure if the changes in 2016 would alter my forecast because even today, the online forecast states, 'not a guaranteed estimate' 
The problem being, that I could have bought extra years for much less than I can now, if that what the case.
I attempted to claim via International Pensions today but their system is down and they can't see the same forecast that I'm looking at.
Do you know if they allow you to buy more years before the process is complete, or would claiming just stop all activity in trying to make up the years?
Thanks

molerat

If the forecast clearly states that you will receive the full amount with no other amounts or caveats quoted further down the page that is what you should get with no further contributions.  If you were ever contracted out then that should be stated further down the forecast.  The 2014 forecast would have been under the old rules and with 31 years you would have reached the maximum basic old pension plus any additional pension but would have been able to improve on that with further additional pension / S2P - the old pension could be as high as £387.90.  Not being contracted out means you could have built up a reasonable amount of S2P taking you above the  value of the new pension.  The forecast is only quoted as an estimate because the amount only becomes ratified once the final calculation prior to retirement is carried out.  Top ups, if necessary, can still be made once the pension is in payment but it is very rare for the forecast to be incorrect.

katejo

My State pension statement says that my forecast is the full £221.20 but also says that I was contracted out for a period. I am not sure of the significance of the contracted out period. I am 61 and may take my Superannuation pension before I reach 67. 

molerat

katejo said:

My State pension statement says that my forecast is the full £221.20 but also says that I was contracted out for a period. I am not sure of the significance of the contracted out period. I am 61 and may take my Superannuation pension before I reach 67. 

Contracting out can only affect your 2016 starting amount, post 2016 contributions then add to that figure. The only people negatively affected were those retiring prior to now as many with a long contracted out history could not make up that gap.