National Insurance

[Maydup]

I’m no longer working and living off savings and a small draw down on my personal pension. I’m below state pension age.

The draw down is above the NI threshold, will I need to pay NI on it? Will it be looked after in my self assessment or should I be doing something else.

I have over 40 years NI record and no gaps so have no need to pay any voluntary contributions.

[ToraToraTora]

Yes and yes.

[Maydup]

Thanks!

I’ll do the self assessment then, post April, and if I need to pay NI, it’ll be charged at that point.

[237SJ]

You don't pay NI on pension.

[bobbinwales]

Answer is definitely no. I draw a pension from prev job and its above the ni threshold hold but there's no NI. I checked the rules and it's defo no NI on pension income ...even if you have other income has ni deducted

[gingejbee]

3Ts will no doubt be along soon to explain his mistakes...he is definitely wrong.

[bobbinwales]

Ttt is wrong.. Pensions are taxable taking into account other income but there is no NI on pension earning's

[ToraToraTora]

^^^^ the key phrase here is "I’m below state pension age. " - so maydup is referring to the time between now and when he reaches pension age. Yes there is indeed no NI after pension age is reached. My answers reflect that. 237sj/bob/gingejbee will no doubt be along soon to explain why they failed to read the question.

[ToraToraTora]

apologies "he" is a "she"!

[bobbinwales]

I'm below pension age. Age don't matter...no pension income is liable to NI even if your only 50 .

[bobbinwales]

https://www.moneyhelper.org.uk/en/pensions-and-retirement/state-pension/do-i-pay-national-insurance-on-my-pension

[ToraToraTora]

OK apologies, I miss read the government site, anything you get from a pension is not subject to NI.

[bobbinwales]

I'd check your state pension forecast. You may find some year's don't count if you were contracted out pension scheme at work. It may be worth paying some voluntary ni

[Maydup]

Thanks all, I’m pleased to have these updates. I have done a pension forecast and no gaps in my NI no reason to pay voluntarily.

The main thing is that should anything change in a future budget it will be looked after in the self assessment anyway. But for now I pay nothing hoorah!

[bobbinwales]

Am just curious as to why your doing self assessment...won't you just have a tax code for your pension through PayPal??

[bobbinwales]

I typed PAYE ...not paypal

[Maydup]

I dont pay through PAYE as mine is a personal pension, not one through an employer or anyone else who can deduct tax from me. I can chose how much to draw down and need to do a self assessment on my income.