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Semi retirement and state pension

14 replies

Snoods · 27/01/2026 08:36

I know I probably need to speak to someone who really knows about this stuff, but I am trying to work something out for a close family member
Due to take their full state pension next month and considering dropping to 3 days a week at work
I’ve been on salary calculator which I find pretty good but wanting a bit of assurance really
30k salary full time so 18k if 3 days
Plus state pension of around 990 a month and not paying into a private one anymore or NI anymore

No other income at present as not taking private pension yet
Calculation says around 2190 take home a month
Does this sound right?
Thanks to anyone who replies

OP posts:
Somersetbaker · 27/01/2026 09:01

From April the full state pension will be just under £12k/year, so if the family member drops to 3 days and gets £18k, if anything they will be better off, because they're not paying NI. I would keep paying into the private pension, especially if the employer contributes, as you still get the tax relief. Don't forget £200 WFA and the £10 Xmas bonus.

Bromptotoo · 27/01/2026 12:40

Back of a fag packet says work equal to £324.39/week and Pension £230.25 so weekly £554.64 so £2403.month but that probably misses the fact that State Pension is taxable at 20%

rainbowunicorn · 27/01/2026 12:48

That dosent sound too far off. The state pension is due to rise to £241.30 a week from April so will use most of personal allowance, then the part time income will be taxed but no NI to pay. That is assuming they have enough contributions for full New State Pension.

Soontobe60 · 27/01/2026 12:55

Income is £29973 (salary + pension)
Less income tax (£3480) = £26492pa (tax is 20% of £29973 less the personal allowance of £12570)
£26492 divided by 12 = £2207 pm

Snoods · 27/01/2026 13:27

Thanks everyone
Much appreciate

OP posts:
Crwysmam · 27/01/2026 13:29

They won’t pay NI but will n ed to show proof to employer for payroll purposes.

rainbowunicorn · 27/01/2026 13:31

Crwysmam · 27/01/2026 13:29

They won’t pay NI but will n ed to show proof to employer for payroll purposes.

Edited

Not if they are over state pension age they won't.

Hadalifeonce · 27/01/2026 13:31

NI is not payable on earnings after retirement age.

Crwysmam · 27/01/2026 13:35

rainbowunicorn · 27/01/2026 13:31

Not if they are over state pension age they won't.

You’re right, I’m self employed so rul s are different

ReignOfError · 27/01/2026 13:37

edited because I can’t read apparently.

CollieModdle · 27/01/2026 14:06

As the state pension is added to their earned income for tax purposes they would do well to continue to pay into a private pension so that their tax on the payment gets re-credited into their pension.

ByQuaintAzureWasp · 27/01/2026 14:18

Income £30k pa from April. £2209 per month presuming not putting money into pension.

OnGoldenPond · 27/01/2026 16:00

Crwysmam · 27/01/2026 13:29

They won’t pay NI but will n ed to show proof to employer for payroll purposes.

Edited

If they are on payroll their date of birth is recorded in the system and the payroll software automatically stops deducting employees NI once you reach state pension age. No need to notify anyone.

Snoods · 27/01/2026 18:51

Thank you for the latest posts everyone

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