Early Pension and National Insurance Contributions

jimmyjazz1992

Hi all

I'm hoping to retire in September with a teachers pensions and a drawdown from other pensions.

As I will be 7 years away from state pension should I be thinking about National Insurance contributions from September onwards in order to get the full state pension in 7 years?

Many thanks

Jimmy Jazz.

Marcon

jimmyjazz1992 said:

Hi all

I'm hoping to retire in September with a teachers pensions and a drawdown from other pensions.

As I will be 7 years away from state pension should I be thinking about National Insurance contributions from September onwards in order to get the full state pension in 7 years?

Many thanks

Jimmy Jazz.

Presumably you've checked your state pension forecast...? https://www.gov.uk/check-state-pension

If you'll be short of full years and you want to top up (and are sure you won't work again/do anything which would qualify you for NI credits), then yes, you should be thinking about voluntary NI contributions. 

jimmyjazz1992

Marcon said:

jimmyjazz1992 said:

Hi all

I'm hoping to retire in September with a teachers pensions and a drawdown from other pensions.

As I will be 7 years away from state pension should I be thinking about National Insurance contributions from September onwards in order to get the full state pension in 7 years?

Many thanks

Jimmy Jazz.

Presumably you've checked your state pension forecast...? https://www.gov.uk/check-state-pension

If you'll be short of full years and you want to top up (and are sure you won't work again/do anything which would qualify you for NI credits), then yes, you should be thinking about voluntary NI contributions. 

Hi thanks for your valuable insight...again.

I have ...

• 37 years of full contributions

So I presume even if I am not working or paying anymore NI contributions for the next 7 years I will still qualify for the full amount?

Blue_Butterfly

jimmyjazz1992 said:

Hi all

I'm hoping to retire in September with a teachers pensions and a drawdown from other pensions.

As I will be 7 years away from state pension should I be thinking about National Insurance contributions from September onwards in order to get the full state pension in 7 years?

Many thanks

Jimmy Jazz.

You may not need to pay anything extra for 24-25 as you only need to earn £6396 gross per year to qualify for a whole year. Even if you earn a bit less than that you only need to pay a week for each £123 you are short of that total, which is done after the end of that tax year.

molerat

I have ...

• 37 years of full contributions

Which is of no real relevance whatsoever. 

So I presume even if I am not working or paying anymore NI contributions for the next 7 years I will still qualify for the full amount?

What does the pension forecast, not your NI record, actually state ? There will be 2 or 3 amounts stated with caveats as to how to achieve those amounts.

p00hsticks

You may well find that, depending on your salary and your payment frequency, that working until September will be sufficient for 2024-25 to count as a 'full year' for State Pension qualification purposes.  

But you won't find that out for sure until some time after the end of that tax year. 

Going forward, if your forecast indicates that you still need additional years to take you to the maximum possible amount, you can either wait until closer to SPA to pay the years - you can pay for up to six previous years, although prices of all but two will be higher than if you had bought them at the time. 

Or if you prefer to spread the cost and take the gamble that you'll live long enough to benefit, you can set up a monthly direct debit to make voluntary contributions for the current year - just remember to cancel it when you have sufficent years if that is before SPA. 

MallyGirl

jimmyjazz1992 said:

Marcon said:

jimmyjazz1992 said:

Hi all

I'm hoping to retire in September with a teachers pensions and a drawdown from other pensions.

As I will be 7 years away from state pension should I be thinking about National Insurance contributions from September onwards in order to get the full state pension in 7 years?

Many thanks

Jimmy Jazz.

Presumably you've checked your state pension forecast...? https://www.gov.uk/check-state-pension

If you'll be short of full years and you want to top up (and are sure you won't work again/do anything which would qualify you for NI credits), then yes, you should be thinking about voluntary NI contributions. 

Hi thanks for your valuable insight...again.

I have ...

• 37 years of full contributions

So I presume even if I am not working or paying anymore NI contributions for the next 7 years I will still qualify for the full amount?

Don't presume - check! You are not from the cohort that only needs 35 years.

jimmyjazz1992

I am trying to wade through this. For some of us pensions and tax and all that stuff are a real struggle to get your head round - hence this forum. Some answers I am getting are great and give me advice to work through, which I really appreciate but crikey! I wish some people would read through before replying and hear how curt and dismissive their replies are . I don't need a bollocking!

jimmyjazz1992

MallyGirl

'Don't presume - check! You are not from the cohort that only needs 35 years.'

That's why I'm asking. I use the word 'presume' as it invites a reply if incorrect. Hence the question mark!

xylophone

 First check your forecast 

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

What exactly does it say at estimate to 5/4/23?

Will the tax year just ending be a qualifying year?

How many QY did you have at 5/4/16?

And from 6/4/16 to the tax year just ending?

[Deleted User]

@jimmyjazz1992. Please feel free to join the discussion in the threads below in my signature as you approach retirement. I am a retired teacher myself and you may find my ramblings and those of others useful. 

You may well need to make some voluntary NI contributions between now and your state pension age as you will have been contracted out for some years before 2015/2016 if working as a teacher.

I will have made 47 years of NI contributions to achieve almost a full 'new' state pension from July as a result of being contracted out for so many years. I will pay the 47th year 2023/2024 when the figure is available later this year. I finally fully retired last June so will have made some payments but will need to top up. I am not complaining at all, as I will have a decent TP plus my state pension.

More detail about my journey is on my thread. Good Luck! Best wishes.

Contributions to either thread about your plans would be very welcome.