National insurance contributions

indigofreeze

Hi all and thanks for any advice.

I have 10 years until state pension age. 

I have got 40 years of full national insurance contributions with one gap '2009 to 2010 Year is not full'

My forecast is £221.20 a week and says this is the most I can get.

I've recently started working a very part time job and won't earn enough to pay national insurance. I plan to take out a 10 year annuity which will stop when I start to get my state pension. 

Am I guaranteed the full amount of state pension in 10 years time even tho I won't be paying anymore national insurance.  Is there any benefit in continuing to pay national insurance for the next 10 years and also is there any benefit in paying to have a full year for 2009/10?

Thank you

Dazed_and_C0nfused

indigofreeze said:

Hi all and thanks for any advice.

I have 10 years until state pension age. 

I have got 40 years of full national insurance contributions with one gap '2009 to 2010 Year is not full'

My forecast is £221.20 a week and says this is the most I can get.

I've recently started working a very part time job and won't earn enough to pay national insurance. I plan to take out a 10 year annuity which will stop when I start to get my state pension. 

Am I guaranteed the full amount of state pension in 10 years time even tho I won't be paying anymore national insurance.  Is there any benefit in continuing to pay national insurance for the next 10 years and also is there any benefit in paying to have a full year for 2009/10?

Thank you

When you say your forecast do you mean it sates you have already accrued £221.20?

If so there is no point in buying any additional years. 

But if you earn enough then National Insurance will be deducted by your employer.  If you are employed you cannot simply stop paying because it is of no benefit for your State Pension.

indigofreeze

Thanks for your reply. 

It doesn't say anything about already accrued it just says my forecast is £221.20.

I wasn't intending on stopping paying national insurance, the opposite really. I wanted to know if I should pay voluntary national insurance because I don't earn enough in my job for national insurance to be deducted automatically. 

I want too make sure I'll receive the full state pension and not jeopardise that by not having enough qualifying years.

Thanks for any advice

molerat

It doesn't say anything about already accrued it just says my forecast is £221.20.

If it has that one and only figure shown then you have already reached that amount, there should also be a statement about "cannot improve your forecast".  If you haven't got there yet there will be maybe 3 amounts shown and what you need to do to achieve that amount in the big green box.

Brie

Given the current system you could simply check your forecast in a year's time and see if it still says you've got the full amount and then you can negotiate filling in the most recent year if that's what's missing.  

You say you'll be working part time.  It would have to be pretty minimal to not have the year qualify.  I googled and found this from Which.....

If you're earning less than £12,584 a year but more than £6,396, you won't pay National Insurance but will still get a qualifying year.

Dazed_and_C0nfused

Brie said:

Given the current system you could simply check your forecast in a year's time and see if it still says you've got the full amount and then you can negotiate filling in the most recent year if that's what's missing.  

You say you'll be working part time.  It would have to be pretty minimal to not have the year qualify.  I googled and found this from Which.....

If you're earning less than £12,584 a year but more than £6,396, you won't pay National Insurance but will still get a qualifying year.

Only if your pay is fairly evenly spread though

A single week or month earning above the weekly or monthly threshold will mean you pay NI even if in every other week or month you are under and earn less than £12,584 in total.

And that NI isn't refundable.

indigofreeze

I will be earning a very small amount from the part job, about £5000 per year and topping it up with an annuity. 

I'll just keep an eye on my pension forecast each year and top up if I need to. 

Thanks everyone!