NI and a long work break?

**TheFaQQer** · 16 November 2011, 16:31

Originally posted by swebb View Post

Hi,

After my last contract I decided to take a long break as I'd been contracting for around 5yrs without any major time off. Well now I've been off for 6 months and I'm thinking of sitting on my backside for another couple of months

. I am a little concerned about my lack of personal NI contributions though and how this effects my pension.Is there anything I should be doing (other than working obviously!). Do I need to let the HMRC know what I'm doing, stay stum, pay some NI ?????

Thanks for any advice.

Steve

If you are short in a year, they will contact you and offer the chance to make it up, allocate a part year to another year, or get a refund.

**swebb** · 16 November 2011, 16:45

Originally posted by TheFaQQer View Post

If you are short in a year, they will contact you and offer the chance to make it up, allocate a part year to another year, or get a refund.

Ah thanks for that

I'll probably just pay up for the missing year then.

I thought I had read somewhere that you can miss a few years now without effecting the pension but that might have been something to do with woman and having children, I forget.

**TheFaQQer** · 16 November 2011, 16:50

Originally posted by swebb View Post

Ah thanks for that

I'll probably just pay up for the missing year then.

I thought I had read somewhere that you can miss a few years now without effecting the pension but that might have been something to do with woman and having children, I forget.

It certainly does for women, don't know about men.

MrsF had a letter this year, and rang them about it - guy was incredibly helpful and pointed out we could have the £250 (I think) back and it wouldn't impact her pension.

**swebb** · 16 November 2011, 18:19

Well it looks like its another financial topic from the government that is clear as mud then

I'll wait for them to contact me and then ask the question about the number of years required. I've already got around 24yrs so maybe I should just get all I need out the way and retire

**escapeUK** · 16 November 2011, 18:23

Originally posted by swebb View Post

I've already got around 24yrs so maybe I should just get all I need out the way and retire

You can retire whenever you like, but the pension wont start until you reach retirement age.

My mother had to pay for a few missed years, it was a lot less than you'd actually pay in NI normally.

**Gonzo** · 16 November 2011, 20:01

I left the UK during the 2008/2009 tax year (and obviously stopped paying NI at that point).

I didn't hear anything about missed contributions for the 2008/2009 tax year but HMRC have recently sent me a letter advising me that I have a gap for the 2009/2010 tax year and I can pay £626.60 to make it up if I want to.

Their letter states that I can make up the gap any time between now and 5th April 2016 but that it may cost more if I wait until after 5th April 2012.

I don't have make up the gap but that I won't get a full state pension without 30 years contributions (and for a man 44 years' contributions are required for 'certain bereavement benefits', whatever they are).

The letter also states that I already have 21 qualifying years' contributions - I haven't got 21 full years' employment history so I must have got some credits during the time I was a student and also being on the dole during the 1993 recession.

**Zippy** · 16 November 2011, 20:11

Hi Gonzo

You get NI credits when you sign on. I'd imagine the 'bereavement benefits' are a widower's pension or help with funeral costs. I'm planning on leaving my body to science so the medical school will have to pay those costs.
Or (more likely) Mr Z will drive the old stiff out in to the country and leave it under a hedge.

**Gonzo** · 16 November 2011, 20:24

Originally posted by Zippy View Post

Hi Gonzo

You get NI credits when you sign on. I'd imagine the 'bereavement benefits' are a widower's pension or help with funeral costs. I'm planning on leaving my body to science so the medical school will have to pay those costs.
Or (more likely) Mr Z will drive the old stiff out in to the country and leave it under a hedge.

Hi Zips.

It's hard work making decisions now about something that is not going to happen for nearly three decades.

Does anyone really think that the government retirement schemes are going to look the same then as they do now?

If I don't return to the UK and the pension rules where I am stay the same (that can't happen, they can't afford it but are still getting away with being in denial) then there is zero value in making up my missing NI years in the UK.

**SueEllen** · 16 November 2011, 20:28

Originally posted by Gonzo View Post

It's hard work making decisions now about something that is not going to happen for nearly three decades.

Does anyone really think that the government retirement schemes are going to look the same then as they do now?

It's like the arguments over how they have introduced increasing the retirement age for women.

Apparently you need a minimum of 11 years to plan for your retirement. So when you are 15 years away then you need to make up the shortfall. However you may still get screwed.

NI and a long work break?