State Pension Changes NI Contributions

[MontyVeda]

I've just checked mine, and as I suspected, I've been fully paid up for some years now and due to collect £11,180,30 per annum from around 2 weeks before I probably croak it.

It did say this though, which kind of feeds into what @PaulSB was saying.

If you’re working you may still need to pay National Insurance contributions until DOB 2036 as they fund other state benefits and the NHS.

'may' is not 'must' and it says nothing about the state pension, but 'other' benefits.

 

[Slick]

'may' is not 'must' and it says nothing about the state pension, but 'other' benefits.

I took it that was what Paul was saying when he said the exact circumstances are unclear and he couldn't find anything specific to back up his claim.

Selfishly, I should be fine.

 

[SpokeyDokey]

This is what I said in #26.

If you continue working after your 35 years of full contributions you will still pay NI until State Pension age for the reasons you state.

What it doesn't say is that you HAVE to pay NI until your State Pension age if you retire younger with 35 years full contribution.

This being the moot point of the recent discussion.

 

[Regular.Cyclist]

Just checked mine:

• 39 years of full contributions
• 12 years to contribute before 5 April 2035
• You do not have any gaps in your record.

So basically I’m still paying at the moment with no further future benefit to me.

 

[ClichéGuevara]

My last working day is the exact day that I meet the minimum NI contributions to get the full state pension.

 

[glasgowcyclist]

or as I can't afford to retire, continue working put more in & get exactly the same at 66.5 years.

So basically I’m still paying at the moment with no further future benefit to me.

You’re not paying into a pension pot from which you will later withdraw.

Your current contributions are paying the pensions of those people currently in receipt of the SP. And when it comes time for you to draw your SP, that cash will come from workers paying their NI (some of whom will, similarly, then be contributing beyond the required 35 years).

 

[PaulSB]

That's not my experience and there is nothing on the .gov website to suggest this is the case.

Ime there is absolutely no requirement to work until State Pension age to get the full State Pension.

The only requirement is 35 years full NI contributions.

Myself and at least two friends all retired well before our State Pension ages and now receive the full State Pension - two of us, including me, get this plus additional S2P/SSP payments.

If you have any different info' to the aforementioned position perhaps you could provide a link?

***

There is a lot of confusion around this subject tbh.

One is the 'why do I have to keep paying NI if I have 35 years of full contributions?' which is answered below - basically you continue paying until State Pension age IF YOU WORK to fund people who are in a situation where through no fault of their own they do not have enough NI years of their own and never will do.

https://www.ii.co.uk/analysis-comme...e-once-ive-paid-enough-state-pension-ii510447

NB: please read the above article thoroughly. The scheme is that 35 full years NI contributions will give you a full State Pension.

However, due to various scheme changes over the years SOME people may have to make up any shortfalls accrued under previous schemes - this is where things can get very messy and MAY mean that there will be a shortfall on the amount of State Pension you will be paid (despite having 35 years full payments) and you MAY be able to compensate for this with extra payments.

If in doubt check your personal forecast with HMRC or a qualified person eg your accountant etc.

This will give you the amount you will receive based on your current level of contributions and the current rate of State Pension payment.

Qualifying years may change over time subject to Government whims plus the State Pension amount generally rises annually although there is nothing to say it cannot remain static year to year.

Spokey we're similar in age, I think, and as I said earlier I got the full SP without purchasing additional years. The exact position is difficult to be exact about for men born after April 6 1951 and women 1953 as we are in the transition period between the old and new SPs. This is why I keep urging people to use the .gov.uk website forecast page. Sitting back feeling secure because one has 35 qualifying years is a recipe for disappointment. It takes two minutes to check. I get the definite impression many posting here are happy accept the 35 years thing at face value without looking deeper into it.

On behalf of my wife I spoke with the DWP, my FA and used the .gov.uk tool. Each came back with the same answer, for a full SP she needed to buy five years. She retired aged 60 with 41 years full contributions. The years she had to purchase were post her retirement when she did not work or pay NI.

People really should check this carefully and get a forecast annually if they stop working before SP age.

 

[PaulSB]

You’re not paying into a pension pot from which you will later withdraw.

Your current contributions are paying the pensions of those people currently in receipt of the SP. And when it comes time for you to draw your SP, that cash will come from workers paying their NI (some of whom will, similarly, then be contributing beyond the required 35 years).

Hurrah!

 

[Slick]

This is what I said in #26.

If you continue working after your 35 years of full contributions you will still pay NI until State Pension age for the reasons you state.

What it doesn't say is that you HAVE to pay NI until your State Pension age if you retire younger with 35 years full contribution.

This being the moot point of the recent discussion.

Martin Lewis is explaining it now, for some people its 44 years of contributions.

 

[ClichéGuevara]

Spokey we're similar in age, I think, and as I said earlier I got the full SP without purchasing additional years. The exact position is difficult to be exact about for men born after April 6 1951 and women 1953 as we are in the transition period between the old and new SPs. This is why I keep urging people to use the .gov.uk website forecast page. Sitting back feeling secure because one has 35 qualifying years is a recipe for disappointment. It takes two minutes to check. I get the definite impression many posting here are happy accept the 35 years thing at face value without looking deeper into it.

On behalf of my wife I spoke with the DWP, my FA and used the .gov.uk tool. Each came back with the same answer, for a full SP she needed to buy five years. She retired aged 60 with 41 years full contributions. The years she had to purchase were post her retirement when she did not work or pay NI.

People really should check this carefully and get a forecast annually if they stop working before SP age.

There are many people with over 40 years full NI contributions, that won't get the full state Pension.

One thing to factor in, is that the state is liable to top that up with other benefits depending on circumstances, and the net result could be more beneficial than having the full state pension.

 

[PaulSB]

There are many people with over 40 years full NI contributions, that won't get the full state Pension.

One thing to factor in, is that the state is liable to top that up with other benefits depending on circumstances, and the net result could be more beneficial than having the full state pension.

I know. This is why I urge people to check and not fall into the 35 year trap.

 

[Regular.Cyclist]

Your current contributions are paying the pensions of those people currently in receipt of the SP. And when it comes time for you to draw your SP, that cash will come from workers paying their NI (some of whom will, similarly, then be contributing beyond the required 35 years).

As a public service employee, what with tax, NI, pension contributions, I prefer to look at it as I am contributing to my own salary. 😂

 

[SpokeyDokey]

Spokey we're similar in age, I think, and as I said earlier I got the full SP without purchasing additional years. The exact position is difficult to be exact about for men born after April 6 1951 and women 1953 as we are in the transition period between the old and new SPs. This is why I keep urging people to use the .gov.uk website forecast page. Sitting back feeling secure because one has 35 qualifying years is a recipe for disappointment. It takes two minutes to check. I get the definite impression many posting here are happy accept the 35 years thing at face value without looking deeper into it.

On behalf of my wife I spoke with the DWP, my FA and used the .gov.uk tool. Each came back with the same answer, for a full SP she needed to buy five years. She retired aged 60 with 41 years full contributions. The years she had to purchase were post her retirement when she did not work or pay NI.

People really should check this carefully and get a forecast annually if they stop working before SP age.

I see where you are coming from Paul.

That transition period from the old to new State Pension is where the waters get muddied. Presume this underpinned your wife's personal position.

I have alluded to that in one of my previous posts.

I think that going forward most of the younger soon to be State Pension receivers will be ok with their 35 years and stopping work well before their State Pension payment date.

I was born in 1956 and my two freinds, mentioned earlier, were born in 1955 and the three of us stopped working way before our pensions were due - each with 35 years or so full NI Contributions and all receive full State Pension (plus some in two cases).

I stopped work at 48 but had a passive interest in a business that paid me a salary on which NI was paid for several years after which got me 'over the line' as it were.

As you say the Gov' forecast facility is very good and, in my case, and others I know was very accurate due to the underlying calculation method.

If anyone is in doubt then expert advice should be sought and we agree on that.

 

[SpokeyDokey]

Martin Lewis is explaining it now, for some people its 44 years of contributions.

It will be for some but they will be outliers caught in specific situations.

Martin knows his stuff so you should get a good steer from him.

 

[Slick]

It will be for some but they will be outliers caught in specific situations.

Martin knows his stuff so you should get a good steer from him.

Its an interesting watch.

One example of a group of people requiring 44 years of contributions to access full pension is those who opted out during the 80's. Apparently, this group reduced their NI contributions and redirected this to a company pension.