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Paying NI for 35 years to get state pension, how much NI per year?

(21 Posts)
WhoTheFuckIsSimon Sun 03-Jan-16 21:14:57

Just wondering if you have to pay a certain amount? When I was at uni I worked one, sometimes two days a week in a shop and I don't know if I paid enough NI for it to count or if that's three years written off?

coolcanary Sun 03-Jan-16 22:47:44

Have you requested a statement of NI contributions? That will tell you definitely whether you're fully paid up for that year.

To get a qualifying year, you need to earn a minimum of £5,824 for 2015/16 (in previous years it will be lower but similar rates relative to average wages). On a weekly basis, the lower earnings limit to get NI contributions is £112. But you don't need to earn that much every single week, you just need to meet the annual minimum, so if you worked full time during your holidays you might still have earned over the threshold for the year, it is the annual figure that matters. Bear in mind that these are tax years so 6 April-5 April.

WhoTheFuckIsSimon Sun 03-Jan-16 23:09:30

Thanks, that's really helpful. Didn't know you could apply for a statement so will do that.

specialsubject Mon 04-Jan-16 12:21:57

you also need to get a state pension forecast, that will tell you how many years they think you have. Leave it a couple of months as the system is changing.

be aware that the number of qualifying years is going up now, but has gone down in the past. So if you are a long way off retirement, don't go bananas about buying extra years at this stage. You don't get a refund if you buy too many.

AuntieStella Mon 04-Jan-16 12:26:02

You will also get NI credits if you receive certain benefits, and this includes Child Benefit (until a cut of date when youngest goes in to year 7).

I doubt very much that the number of qualifying years will reduce again. It was 35 for ages before the government reduced it (in the 00s wasn't it?) so I'd see anything under 35 as the blip IYSWIM

(pity as I'm nearly at my 30!)

WhoTheFuckIsSimon Mon 04-Jan-16 12:44:33

I'm nearly 40. Have worked since I was 16 but only part time until I waas 21 as I was at college and then uni.

Went to uni do a second time but was getting child benefit as dd was 4yo so hoping those three years aren't written off.

Thinking o going to uni for a third time and want to make sure I wont bugger my pension up!

coolcanary Mon 04-Jan-16 17:04:17

Between 1975-2010 NI credits were given to 16,17 and 18 year olds at college/school or approved training. So you were probably credited for those years. But at uni you wouldn't be credited unless you were earning enough.

originalmavis Mon 04-Jan-16 17:06:18

I think you have to have worked for a certain number of years to get the full amount - is it 27 years?

specialsubject Mon 04-Jan-16 17:28:07

you need 35 years of credit from work, study or other things.

the target was 30 years for quite some time, and has been raised in a stealth move. Same as the quadrupling of insurance tax over the last few years - it went up 30% in the last budget.

but inflation is very low, isn't it??? angry

originalmavis Mon 04-Jan-16 18:18:23

But since we will be working until we are 90 or drop dead (whichever comes first) I suspect it's all academic as there won't be universal state pensions for much longer.

specialsubject Mon 04-Jan-16 19:48:34

that, unfortunately, is quite possible.

think about a private pension to have more control!

dontcallmethatyoucunt Tue 05-Jan-16 19:40:21

Unless you earned over the NI limit when part time you may not have credits.

35 years is relatively easy to achieve as State Pension age is now going to be linked to longevity

HappyMom1212 Tue 05-Jan-16 20:29:38

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

WhoTheFuckIsSimon Tue 05-Jan-16 20:48:17

Ah bless. Do a lottery spell for me, ive bought my first ever ticket today!

StepAwayFromTheThesaurus Tue 05-Jan-16 20:53:16

Apparently the love spell so will bring yours estranged husband running back, down on his knees apologising and professing eternal adoration. However, now that I've seen that the poster also got lucky with a lottery spell, I'm less convinced that it was the love spell that brought her imaginary husband running back to her.

StepAwayFromTheThesaurus Tue 05-Jan-16 20:57:13

On topic: I also wouldn't worry about the NI contributions for a state pension at this point. I suspect it will be more years than anyone would like before we get to qualify and even then, it probably won't be universal any longer and you'll probably not qualify.

I'm not even convinced I'm going to get anything meaningful out of my occupational pension (despite the years of contributions from me and my employer), never mind a state pension. I suspect I'll have to work til I die.

WhoTheFuckIsSimon Tue 05-Jan-16 21:17:52

If ive paid NI for over 20 years and then they change the goal posts and make it non universal I will be well pissed off.

Though my current work pension says if I retire now I will get £2600 a year. That's after eight years paying in so even if I manage another 16 years it's not exactly going to have me rolling in cash.

StepAwayFromTheThesaurus Wed 06-Jan-16 13:45:24

Well, the government will undoubtedly say that NI is just taxation pretending to be something different what pays for any unemployment or disability or health (etc) benefits/services you receive throughout your life rather than a pension scheme. And, of course, that the country cannot afford to keep subsidising the well off with pensions.

Sure people will be annoyed, but that doesn't mean it's not very likely to happen before I get anywhere near old enough to be eligible for a state pension.

WhoTheFuckIsSimon Wed 06-Jan-16 13:50:53

I guess there'll have to be a cut off and hopefully I'll be under it. I can see why wealthy bankers who retire on a pension of 50kplus maybe shouldn't have a state pension.

StepAwayFromTheThesaurus Wed 06-Jan-16 14:04:08

I'm pretty sure the cut off will be much, much lower than that. By the time I'm 68, I should (unless they make my pension scheme even worse than it is now) be able to draw a pension equivalent to around £25k a year (but adjusted for inflation). That's what the forecast is (and most of that's from defined benefits not defined contributions --and hope the stock market does well--). I'm pretty sure that'll be way above any cut off. The logic will go: it's why should people with an income close to the national average salary get any additional state subsidy?

And, of course, it's a pension so we should all have paid of our mortgage like responsible little citizens so our housing costs should be minimal, and We won't have work-relatated expenses, and so on. So, in fact, they'll tell us that the cut off needs to be much lower than what working age people can expect to earn...

I wouldn't put any faith in any state pension being very much at all and anyone but the very poorest qualifying come the 2040s and 2050s (and beyond).

mollie123 Wed 06-Jan-16 14:11:19

the NI requirement for basic state pension was 39 years for women and 44 years for men then a certain GB changed it in 2010 to 30 years for both but did not make it retrospective for those the wrong side of the cut off date hmm
it is now going back to 35 for both - don't rely on it not changing again but at least you will get the flat rate pension. smile

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