I'm currently on the dole which is paying my "stamp" alongside jobseekers allowance. I've had virtually continuous employment since I was 18 (now 55).
If I were to go for a long period without being signed on or working (worst case, until my retirement age, now 66), would it affect any state benefits? Or have I already paid enough in? (btw this is not my plan, I'm just curious!)
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Do you need to pay NI contributions at all (Stamp ?) if you can prove 30 years contribution you don't have to if you're not in work. There's a number to phone they'll provide you with a written statement of contributions.
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Thanks PU, a mate had mentioned 30 years, just looking for forum consensus :-)
I'll look up the number and enquire.
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If you mean your contribution requirements for the state pension this may help. The qualifing years vary with date of birth. I retired at 60 and was credited contributions to 65 although I already had maximum required contributions. (44 years in my case.)
www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/Basicstatepension/DG_10014671
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There has been a previous debate on this somewhere - Zero had it sussed.
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Missed the edit -
Typical, reading the link I see they have moved the goalposts and I would only require 30 years contributions now.
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www.dwp.gov.uk/docs/cpf5-your-pension-statement-explained.pdf
Explains everything in this.
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Yup indeed I did have it sussed. And PU has provided the gen.
Once you have 30 years of contributions behind you, you don't need to pay when not in work.
Being able to non contribute was a factor in my retirement calculations
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Thanks - found the thread and had a read of the DWP pages too. That's answered my question, thanks again.
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>> I'm currently on the dole which is paying my "stamp" alongside jobseekers allowance. I've had
>> virtually continuous employment since I was 18 (now 55).
>>
>> If I were to go for a long period without being signed on or working
>> (worst case, until my retirement age, now 66), would it affect any state benefits? Or
>> have I already paid enough in? (btw this is not my plan, I'm just curious!)
>>
If you have any "real assests" - money in bank/shares then your JSA lasts 6 months - if you have little no assets and say pay rent (Private or council) you will still get benefits until you find work / choose to retire.
Seems grossly unfair on many in their 50' 60's - worked 30/40 years - pay NI (say £10-£70/week) for a long time and get under £70/week when you do claim.
School leavers with no work intentions, and job dodgers gets their £70+uplifts for kids/partners and have paid in diddly squat.............
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>> Seems grossly unfair on many in their 50' 60's - worked 30/40 years - pay
>> NI (say £10-£70/week) for a long time and get under £70/week when you do claim.
>>
>> School leavers with no work intentions, and job dodgers gets their £70+uplifts for kids/partners and
>> have paid in diddly squat.............
I signed on and had my JSA refused because I got too much pension.
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If you are under 65 and have little/no assets and do not have a a company pension you will get benefits - money, rent/council tax, etc etc
If you are under 65 and draw a pension, have modest savings etc etc you will get very little/ nothing unless you have next to no pension/no cash over about £6,000.
40% of people that are retiring / or over 65 have cash or assets worth under £10K and the average private pension pot in a "money purchase scheme" is under £16K (Pension =< £1000 / yr).
40%+ of retired live in rented (nothing wrong with renting before somebody says anything).
BUT if you are the renting and have no company / additional pension then the OAP pays £130 ish / tax payer pays rent/council tax (100%) then the cost to the taxpayer is not the £100 OAP payment (which most over 65s get) but all the additional costs - say £150/week.
Thereby is the problem - anybody on modest earnings before they retire is punished for saving /paying a pension as the profligate with no assets gets almost as much as the "careful citizen".
Currently if you have some cash / assets it is hardly worth your while until your "private pension pot is over £50K ish" - if 40% have less than £16K very few of the 40% will have over £50k(3x the average) - with inflation bowling along £50K minimum will drammatically rise.
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State benefits v contributions - R.P.