how much to live on???

merseyscouse

i am due to retire probably in august 2008, i will be 52, my annual pension should be £18,853

1. could somebody first tell me would i have to pay national insurance on this???

2. i understand my tax code will be 5435, could somebody work out how much i will pick up net per month.

keith

jem16

merseyscouse wrote: »

i am due to retire probably in august 2008, i will be 52, my annual pension should be £18,853

1. could somebody first tell me would i have to pay national insurance on this???

Not if you are no longer working.

2. i understand my tax code will be 5435, could somebody work out how much i will pick up net per month.

keith

Approximately £1347.45

merseyscouse

thanks...someone else told me this but i cannot work it out...could you show me how you did the maths as there will be some variables before august

jem16

£18,853 - £5435 = £13,418.

Tax on £13, 418 at 20% (as from April) = £2683.60

£18,853 - £2683.60(Tax) = £16,169.40

£16,169.40 divided by 12 = £1347.45

merseyscouse

:beer:
thanks

:T

jennifernil

As I understand it, you may however wish/need to make voluntary NI contributions to get your full State Pension, depending on how many years contributions you have and whether you will be registering as looking for work, or are getting other benefits that credit you automatically.
But there will be others who can give you a precise answer on that.

jem16

jennifernil wrote: »

As I understand it, you may however wish/need to make voluntary NI contributions to get your full State Pension, depending on how many years contributions you have and whether you will be registering as looking for work, or are getting other benefits that credit you automatically.
But there will be others who can give you a precise answer on that.

If no credits automatically you will need 39 years if a woman and 44 years if a man to get full state pension as you are retiring before 2010.

If you were to retire after 2010 that would become 30 years for both.

ManAtHome

That's if you hit state retirement age after 2010 not if you stop working and/or take a company or private pension by the way.

jem16

Yes that's true. I was forgetting that he/she is retiring early.

XRS

Sorry, I just need to get this straight in my own mind. So if the OP has already worked and contributed 30 years of NI, as he reaches the age of 65 after 2010 he will automatically receive a full pension and not have to continue to pay NI when he retires in August?

jennifernil

No, you need to be at state retirement age in 2010 to qualify. They are moving the goalposts then. Not fair on those who are retiring now and have well over 30 years but not the full amount required at present.

My OH is now 65, just retired, has paid for 37 years and has about £13 less than the full pension. (per week)