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ni contributions

(9 Posts)
glassortwo Tue 31-May-11 15:32:47

I have been working part time for the last couple of years and I do not earn enough to pay NI, will it affect my state pension, I am 55 at the moment.

DaisySteiner Tue 31-May-11 15:58:56

It may do. At the moment you need 30 years of contributions to qualify for the basic pension, so if you currently have less than that you will receive a reduced pension when you come to retire. However, you can 'buy back' years where you didn't earn enough to qualify. There's more information here

Hope that helps.

glassortwo Tue 31-May-11 16:02:09

Thanks daisy going to look now.

nickelbabe Tue 31-May-11 16:03:21

if it does, nearer to retirement age, you will get a letter from HMRC asking if you want to top your NI contributions up.
I wouldn't top up anything yet, because you might end up topping up the wrong kind (i'm not sure if it's still that complicated, but it used to be that there was a category of NI that if you bought them, it wouldn't count towards your pension)

my mum had the same situation.
I can't remember how muc hit cost her, but it basically meant that she could retire on a full pension.

glassortwo Tue 31-May-11 16:59:00

Oh thanks nickel I will bear that in mind.

Eddas Wed 01-Jun-11 19:03:34

you can request a state pension forecast which should help you know. see here that link gives you info on a forecast and how to get one.

HTH smile

MoreBeta Wed 01-Jun-11 19:08:45

glassortwo - to be absolutely frank no one who is paying NI today has any idea what they will get as a pension when they retire. I haven't paid NI for MANY years for this very reason. It is just a tax.

As nicklebabe rightly points out don't panic into putting in contributions. The Govt is changing pension entitlements all the time as well as extending retirement ages. A far better use of your money is to pay down any debts you have rather than wasting it paying NI.

glassortwo Wed 01-Jun-11 23:30:27

Thanks everyone, have requested my gateway activation so just waiting for that then I can get a look at it.

vickibee Thu 02-Jun-11 12:45:05

you may still be getting credits to a pension - it depends how much you are earning. Itf you earn above the LEL you still get the credits - think about £102.00 per week up to £139 pw

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