National Insurance in retirement

[squirdle]

I will shortly be retiring at age 55 on an Actuarially Reduced Benefit teachers' pension of £13571 p.a. I know that I will pay tax on this, but will I have to pay National Insurance?

[mjwman]

I too retired at 55 but having paid for my 38 years working I need not pay NI contributions having accrued enough credits for a full pension.
However I do a few weddings per year as a photographer, I am registered as self employed, and have a web site so I have to inform them. My earnings are not enough to warrant paying NI though I would have to if more than (I think) £3000 even though I have the credits. So I have to apply for an excemption.

I hope this helps.
So in short I do not pay

[factor-fiction]

No. NI will not be taken out.
You have probably already paid enough NI contributions to entitle you to a full state pension when your each state retirement age, but if you haven't you might want to consider making up the shortfall

[squirdle]

Thanks to both of the above for their attention. Much appreciated, guys.

[New Judge]

Yes, quite correct.

Beware, though. The Coaltion is currently examining the feasibility of combining Income Tax and National Insurance on the basis that the current system is "too complicated". Of course at present it is a simple matter to exempt pension payments from NI deductions. However, when the new "simplified"system is introduced...

[squirdle]

'The Coaltion is currently examining the feasibility of combining Income Tax and National Insurance' The dirty rotten swine! Down Bluebottle, I'm sure this won't take effect for ages.

[mjwman]

If not already done so you can go on line to search your pension situation. It will tell you how many credits you have. If enough and if you do not work you do not have to pay NI.