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VSS

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

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

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

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 http://www.direct.gov.uk/en/pensionsandretirementplanning/statepension/dg_4017919 where you can calculate your expected pension.
earthyvirgo

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 http://www.direct.gov.uk/en/pensionsandretirementplanning/statepension/dg_4017919 where you can calculate your expected pension.


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

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

EV
crofter

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

Compulsory euthansia at the age of 70 to keep the population under control Rolling Eyes
marigold

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

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

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

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

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?

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

soylent green. vegplot

Logan's run. Expect I'd up the age limit a little. foggy



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.

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.
earthyvirgo



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.

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.

On Monday evening, I went on a small school reunion, 3 of the group were or had been teachers and they were saying that youngsters who quite obviously are not academic but are skilled and talented in other ways are still pushed into 6th form to do A' levels they don't want to do, and then on into Uni where quite a high proportion either struggle or drop out in their first year.

EV
foggy

Yes - at that age it's easy to be pushed along. I and a lot of my friends had no idea what we wanted to do with our lives, the only options were go to university or start working. If only someone had said to me - here, you can do these apprenticeships... marigold

Not so long ago you could start training as a nurse, police officer, physiotherapist, mechanic, electrician and many other careers with only O-Levels or CSEs. I don't think there's any good reason to increase the entry-level qualifications for many jobs, just the ideology that more and more education makes "better" people. The law of diminishing returns kicked in long ago IMO.
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