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Do I pay National Insurance if I retire before SRA

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  • moleratmolerat Forumite
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    And working since 2016 has gained nothing state pension wise.
  • edited 13 October 2019 at 3:10AM
    jamesdjamesd Forumite
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    edited 13 October 2019 at 3:10AM
    Of that £170.61 a week, £168.60 will increase with the triple lock and the rest with CPI. [STRIKE]As the single tier pension increases by more than CPI sometimes, the amount covered by the triple lock will gradually increase until you're not getting anything more than the single tier pension level.[/STRIKE]
  • Mutton_GeoffMutton_Geoff Forumite
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    Thank you all for your advice and calculations. This is an area I didn't realise was so complicated but since the government announced some years ago they were simplifying pensions and the mess of LTA/AA/tapering that I am caught up in, nothing is surprising!
    Compensation/Refunds - £4,655 | Stooz Profits - £7,636 | Quidco - £4,365 | Tax Avoidance - £107,000
    All with a big thank you to Martin and MSE.com from Mutton Geoff!
  • ffacoffipawbffacoffipawb Forumite
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    jamesd wrote: »
    Of that £170.61 a week, £168.60 will increase with the triple lock and the rest with CPI. As the single tier pension increases by more than CPI sometimes, the amount covered by the triple lock will gradually increase until you're not getting anything more than the single tier pension level.

    Are you sure?

    Dont they get £168.60 at triple lock plus £2.01 at CPI?

    I.e. the £2.01 will always be there increasing at CPI?

    Otherwise it is a sort of franking or the £2.01 is just a temporary pension.

    Not saying you are wrong, but it seems a bit odd.
    Retired Cymro

    🏴󠁧󠁢󠁷󠁬󠁳󠁿 Cymru am Byth 🏴󠁧󠁢󠁷󠁬󠁳󠁿
  • grnglidegrnglide Forumite
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    The protected payment will always be calculated separately and increased by CPI and added to the increased nSP amount. There is no concept of the nSP "catching up" to it.
  • xylophonexylophone Forumite
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    Of that £170.61 a week, £168.60 will increase with the triple lock and the rest with CPI. As the single tier pension increases by more than CPI sometimes, the amount covered by the triple lock will gradually increase until you're not getting anything more than the single tier pension level.

    The increases on NSP portion and protected payment portion are calculated separately.

    Thus, let's suppose a person currently has a new state pension of £168.60 and a "protected payment" of £20.00.

    At the moment the system is that the NSP increases under the triple lock* and the PP at CPI.

    *to increase the state pension every year by the higher of inflation, average earnings or a minimum of 2.5%.

    Let's suppose inflation came in at 1.5%.

    Let's suppose AE came in at 4%.

    Then the NSP would be increased by 4% and the PP by 1.5%.

    https://www.royallondon.com/media/good-with-your-money-guides/the-new-state-pension-your-questions-answered/

    If you are getting a pension in excess of the full flat rate, different uprating rules apply to the slice up to the flat rate and the slice beyond.

    The amount up to the full flat rate is uprated in line with government policy on pension uprating. By law this has to be at least in line with the growth in average earnings, though in recent years it has been in line with the ‘triple lock’ policy which applies an increase of the highest of the growth in earnings, prices or a floor of 2.5%.

    The amount above the full flat rate – the protected payment – is uprated only in line with inflation, currently as measured by the Consumer Price Index (CPI).
  • nigelbbnigelbb Forumite
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    Yes, I do. Interestingly I was non resident between 1990 and 1997 and when I returned to the UK asked for a statement on how much to pay for missing contributions and it was around £6,000 which I couldn't afford at the time so didn't bother.
    If you were working abroad then it is possible that you were eligible to pay Class 2 contributions (currently about £150 per added year but less back in 1998) rather than the Class 3 contributions you were quoted for (currently about £800 per added year but less back in 1998). Happily it's made no difference in your case.

    Anyone who moves abroad would be well advised to continuing paying Class 2 contributions if that option is possible. In your case if you had never returned to the UK you would still have received the same amount of pension but your contributions would have been £2.50-£3/week i.e. less than £3K for 20 years contributions.
  • I retired early due to ill health but I don’t receive any benefits due to my wife’s earnings. I’ve paid NI for 35 years. Do I still need to send in sick notes or sign on to get my NI paid or is this pointless as I already have 35 years?
  • moleratmolerat Forumite
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    JackieGB wrote: »
    I retired early due to ill health but I don’t receive any benefits due to my wife’s earnings. I’ve paid NI for 35 years. Do I still need to send in sick notes or sign on to get my NI paid or is this pointless as I already have 35 years?
    You need to get a pension forecast to find out. As you have a pre 2016 history the 35 years rule does not (strictly) apply so you may or may not need more contributions.
  • Just looked it up, I have 36 years before 2016.
    Many thanks
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