ChatterBank2 mins ago
NI contribution holiday
When my daughter was having her two children she paid no contributions between 1992-1997. I was thinking of trying to find the money for her to pay in so that she will get full pension entitlement. But the recent reply to a question which contained an eye-opening explanation makes me wonder about this..
However, has anyone any idea how much this might cost me?
However, has anyone any idea how much this might cost me?
Answers
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Does she qualify for Home Responsibilities' Protection? I assume she is in receipt of Child Benefit for the children.
http://www.hmrc.gov.uk/nic/caring-faq.htm
http://www.hmrc.gov.uk/nic/caring-faq.htm
Unless your daughter will reach the state pension age before 6th April next year (which, from the content of your question seems to be rather unlikely) there's probably no need for any voluntary NI payments to be made anyway.
Up until that date, women require 39 qualifying years of NI payments to qualify for the full state pension. Thereafter they'll only require 30 qualifying years:
http://www.direct.gov.uk/en/Pensionsandretirem entplanning/StatePension/Basicstatepension/DG_ 10014671
Chris
Up until that date, women require 39 qualifying years of NI payments to qualify for the full state pension. Thereafter they'll only require 30 qualifying years:
http://www.direct.gov.uk/en/Pensionsandretirem entplanning/StatePension/Basicstatepension/DG_ 10014671
Chris
Yes, and the qualifying years include the years when the individual is able to claim HRP - as hc points out.
So. from 2010, many females after reaching the age of 48 (18 yrs start work, 30 yrs working life or bringing up children) will have enough in the pot to 'earn' them the full Basic State Pension anyway.
Of course the Government may again change the 'rules' in future, but I remain convinced the money is best left in the individual's pocket until closer to retirement.
A short story for you - Mrs Buildersmate worked in her early 20s for 6 years before claiming back all the NI contributions prior to starting a family. Dire warnings were sounded by letter to us (this was in the days when one could do this). As it now works out, she still has the 30 years needed - and we still had the money that we needed badly all those years ago.
So. from 2010, many females after reaching the age of 48 (18 yrs start work, 30 yrs working life or bringing up children) will have enough in the pot to 'earn' them the full Basic State Pension anyway.
Of course the Government may again change the 'rules' in future, but I remain convinced the money is best left in the individual's pocket until closer to retirement.
A short story for you - Mrs Buildersmate worked in her early 20s for 6 years before claiming back all the NI contributions prior to starting a family. Dire warnings were sounded by letter to us (this was in the days when one could do this). As it now works out, she still has the 30 years needed - and we still had the money that we needed badly all those years ago.
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