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National insurance

Hi I currently earn £10,000 from my part time job and am  nearly 55. I have looked at my state pension forecast and I need an additional 5 years NI contributions to get the maximum amount . What is the threshold of paying NI and if I am under can I pay in monthly now or is it best to wait when I am ready to retire at 67 and "buy " 5 years at once.  I am also going to claim my private pension at 55 so will have £8,000 income from this. Not sure if that has any bearing but thought I had better say! Thank you in advance.
 

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 18,600 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 15 January at 9:27PM
    CSL50 said:
    Hi I currently earn £10,000 from my part time job and am  nearly 55. I have looked at my state pension forecast and I need an additional 5 years NI contributions to get the maximum amount . What is the threshold of paying NI and if I am under can I pay in monthly now or is it best to wait when I am ready to retire at 67 and "buy " 5 years at once.  I am also going to claim my private pension at 55 so will have £8,000 income from this. Not sure if that has any bearing but thought I had better say! Thank you in advance.
     
    You don't need to pay NI to add qualifying years.

    Earning £123/week and your employer reporting this HMRC under the Real Time Information system is what is important.

    You can check what they have been filing by looking at your Personal Tax Account.

    Taking money from your pension won't change anything NI wise but you will start paying (more) tax then.
  • CSL50
    CSL50 Posts: 12 Forumite
    Fourth Anniversary First Post
    Thank you for your time and clear answer much appreciated. 
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 18,600 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    CSL50 said:
    Thank you for your time and clear answer much appreciated. 
    There is a bit more detail here

    https://www.litrg.org.uk/pensions/state-pension/national-insurance-and-state-pension#2
  • Marcon
    Marcon Posts: 15,418 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    edited 16 January at 7:34AM
    CSL50 said:
    Hi I currently earn £10,000 from my part time job and am  nearly 55. I have looked at my state pension forecast and I need an additional 5 years NI contributions to get the maximum amount . What is the threshold of paying NI and if I am under can I pay in monthly now or is it best to wait when I am ready to retire at 67 and "buy " 5 years at once.  I am also going to claim my private pension at 55 so will have £8,000 income from this. Not sure if that has any bearing but thought I had better say! Thank you in advance.
     
    If you need the rates in future years, googling gets you straight there: https://www.gov.uk/national-insurance-rates-letters
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
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