Retirement and NI

[arvia2023]

Hi

My DH May have to ill health retire. Do you know if you pay NI on a private pension paid before SPA due to
ill health? Trying to identify how much we will take home

Thanks

No, you don't pay national insurance on a private pension.

No.

If he gets a benefit such as Employment Support Allowance or Universal Credit he will get NI credits, at least towards his State Pension.

UC is means tested and will depend on your joint finances. ESA is theoretically not means tested but it's eroded, eventually to nil, if you get an occupational pension.

If you don't qualify for cash in ESA you can claim it on a credits only basis so as to get NI paid.

How close is he to pension age?

Has he checked his NI record and asked for a pension prediction?

Thanks for the responses. He’s been off work for over a year following an accident. We haven’t had a statement yet. Just musing on what the potential options will be. I don’t imagine he will get ESA. Do you get NI credits if you claim child benefit if retired early?

@arvia2023 is the reason he won't get ESA related to pension from work?

Worth a word with Citizens Advice or another source of Welfare Rights advice.

No - there's no NI to pay. But income tax as usual.

But depending on circumstances you may need to pay, or be credited with, NI so as to (eventually) get the State Pension

Yes, but I'd consider that an expense - it's not relevant to the take home calculation.