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state pension query
4 Answers
A friend is hoping to get an early retirement ( he is 54 ) deal next year giving him a lump sum and company pension. Will he need to pay national insurance when he is retired so that he qualifies for the state pension when he reaches 65 ? He does not intend to look for other employment so what will his position be if he gets the deal ?
Thanks in advance
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He will have to pay voluntary contributions until he is 60 in order to maintain his NI record for state pension purposes.
If he registers as unemployed he will get free credits - but will be expected to look for work and attend the Job Centre every few weeks to discuss his progress.
From 60-65 he will get the contributions credited if he is not working.
If he has a full record from earlier in his career, he may be able to stop before 60. I think he has to pay/get credits for 45 years for a full pension, so 16 to 56 would be 40 and the credits 60-65 would make up to 45 - but check this.
If he registers as unemployed he will get free credits - but will be expected to look for work and attend the Job Centre every few weeks to discuss his progress.
From 60-65 he will get the contributions credited if he is not working.
If he has a full record from earlier in his career, he may be able to stop before 60. I think he has to pay/get credits for 45 years for a full pension, so 16 to 56 would be 40 and the credits 60-65 would make up to 45 - but check this.
I've been trying to post a link for a Pension Forecast but for some reason I can't cut and paste. If you go to kempie's first link (I think it was) you'll see a link for the forecast.
When yir pal gets it, he'll be telt what he qualfies for at the moment, what it's likely to be worth wi inflation and the number of years' Voluntary Contributions he can pay between now and 65. Wi the Autocredits he'll get fae 60-65 it sounds like he'll get the full whack (don't you just hate official jargon?)
When yir pal gets it, he'll be telt what he qualfies for at the moment, what it's likely to be worth wi inflation and the number of years' Voluntary Contributions he can pay between now and 65. Wi the Autocredits he'll get fae 60-65 it sounds like he'll get the full whack (don't you just hate official jargon?)
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