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VSS

Joined: 14 Jan 2007
Posts: 2845
Location: Llyn Peninsula, North Wales

Posted: Wed Jul 11, 12 9:51 am Post subject: National Insurance

National Insurance has always been a bit of a mystery to me - I can't seem to get my head around how it works and what paying it entitles you to.

Approaching 40 and beginning to think about what on earth the OH and I are going to live on once we are too old and decrepit to work.

I have always assumed there will be some kind of state pension, but have no idea what I would qualify for.

In essence, I have never paid any NI contributions at all.

I have recieved child benefit and I believe this gives you Home responsibilities credit. By the time the last child leaves home we will have been getting CB for about 23 years.

I have also had an exemption from HMRC from paying NI contributions due to low income for the last 15+ years

Can anyone tell tell me what this actually means in terms of the pension I might recieve?

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Wed Jul 11, 12 10:02 am Post subject:
My mum recently was in the same situation (but a lot older, obviously) and was set to get less pension unless she 'topped up' her NI contributions, which amounted to about �700, I think, and she now gets her full pension, same as dad.

earthyvirgo

Joined: 24 Aug 2007
Posts: 7972
Location: creating prints in the loft, Gerlan

Posted: Wed Jul 11, 12 11:21 am Post subject:

I used to be 'exempt' VSS but was either told/or realised that I would be wiser paying Self-employed contribs for the very reason you're thinking about.

I'm not entirely sure what the situation is if you've always been exempt but I'd definitely advise giving them a shout and finding out if you need to play catch up.

I thought I might need to 'top up' because of my early exempt years but when I did an online check recently (and had it confirmed by letter) it all appeared to be fine and I'll get a normal state pension, whatever that might be when the time comes.

EV

marigold

Joined: 02 Sep 2005
Posts: 12458
Location: West Sussex

Posted: Wed Jul 11, 12 11:37 am Post subject:

If you don't get a full pension and you have no other income and not too much in savings, you get pension credit or income support or the future equivalent to give you whatever the government deems to be the minimum you need to live on. Or, as other say you can top up your contributions. There's a link on https://www.direct.gov.uk/en/pensionsandretirementplanning/statepension/dg_4017919 where you can calculate your expected pension.

earthyvirgo

Joined: 24 Aug 2007
Posts: 7972
Location: creating prints in the loft, Gerlan

Posted: Wed Jul 11, 12 12:04 pm Post subject:

marigold wrote:

As well as Marigold's link, there's pretty good info on https://www.hmrc.gov.uk/ website too. Specifically about NI here - https://www.hmrc.gov.uk/ni/index.htm

... which leads on eventually to Marigold's original link

EV

crofter

Joined: 11 Feb 2007
Posts: 2252

Posted: Wed Jul 11, 12 1:24 pm Post subject:
By the time you are old enough to get a pension, nobody knows what things will be like. Plus pension age might have been increased to 90 perhaps - if a state pension exists at all.

VSS

Joined: 14 Jan 2007
Posts: 2845
Location: Llyn Peninsula, North Wales

Posted: Wed Jul 11, 12 2:26 pm Post subject:
Compulsory euthansia at the age of 70 to keep the population under control

marigold

Joined: 02 Sep 2005
Posts: 12458
Location: West Sussex

Posted: Wed Jul 11, 12 2:39 pm Post subject:
Nah - 70 year olds don't breed and most of them are, in fact, perfectly fit and well and able to take care of themselves. Compulsory sterilisation after producing one child would be a much better idea, though a bit difficult to administer amongst people who don't couple up and produce two kids in one family unit.

foggy

Joined: 21 Feb 2012
Posts: 343
Location: Devon

Posted: Wed Jul 11, 12 6:01 pm Post subject:

marigold wrote:

Nah - 70 year olds don't breed and most of them are, in fact, perfectly fit and well and able to take care of themselves. Compulsory sterilisation after producing one child would be a much better idea, though a bit difficult to administer amongst people who don't couple up and produce two kids in one family unit.

but in an ageing population, surely we need more children to look after & pay for the huge number of old folks' pensions?

Penny Outskirts

Joined: 18 Sep 2005
Posts: 23385
Location: Planet, not on the....

Posted: Wed Jul 11, 12 6:41 pm Post subject:
Steve and I got an estimate from HMRC of our state pensions about a year ago, but they posted it to us, has the on-line thingy taken over from that? It is useful, as it gives you a very good idea of what to expect.

earthyvirgo

Joined: 24 Aug 2007
Posts: 7972
Location: creating prints in the loft, Gerlan

Posted: Wed Jul 11, 12 6:43 pm Post subject:

Penny Outskirts wrote:

Steve and I got an estimate from HMRC of our state pensions about a year ago, but they posted it to us, has the on-line thingy taken over from that?

It is useful, as it gives you a very good idea of what to expect.

Ditto, I got mine by post (after ringing them I think) but it seems you can do either now.

EV

marigold

Joined: 02 Sep 2005
Posts: 12458
Location: West Sussex

Posted: Wed Jul 11, 12 7:20 pm Post subject:

foggy wrote:

marigold wrote:

but in an ageing population, surely we need more children to look after & pay for the huge number of old folks' pensions?

The 20% of unemployed youth aren't contributing anything towards anyone's pensions and are themselves a drain on society, but people who are already old have mostly worked hard, paid their dues and lived through harder times than these. We also need to be a lot more practical about end-of-life care and legalise euthanasia. Long term I think it's best to reduce and stabilise the population - fewer people living longer, healthier lives in a more equitable and sustainable economy. It won't happen, but one can have ideals.

Behemoth

Joined: 01 Dec 2004
Posts: 19023
Location: Leeds

Posted: Wed Jul 11, 12 7:30 pm Post subject:
soylent green.

vegplot

Joined: 19 Apr 2007
Posts: 21301
Location: Bethesda, Gwynedd

Posted: Wed Jul 11, 12 7:42 pm Post subject:
Logan's run. Expect I'd up the age limit a little.

foggy

Joined: 21 Feb 2012
Posts: 343
Location: Devon

Posted: Thu Jul 12, 12 3:22 pm Post subject:

marigold wrote:

If the government pushed apprenticeships the way they used to push a-level students into university, I'm sure there wouldn't be such an unemployment issue. While I certainly learnt a lot at university, it's done bugger all for my career, & I wish I had learned a trade instead.
Other than that, I agree with you.

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