If I pay more national insurance contributions do I get a higher state pension?

Question

I am 22, and although retirement is a far away concept, I believe it best to start early! I currently work full time on PAYE and pay NI contributions. I have however just graduated from drama school so have also registered as self employed for any upcoming acting work. As work in the arts can be so sparodic, I cannot guarantee I will earn over 4825 in the tax year (statisticaly its more likely I won't!). I spoke to someone from revenue & customs and they said I could apply for a small earnings exemption and if then my income from the acting does go over the ammount, I can pay it off with my self-assesment at the end of the year. This is all good but am wondering if it will make any difference to my state pension in the future if I do pay the £2.30 a week NI for the self empolyed? Will I recieve more pension if I pay more NI? Are there different tiers of state pension and if so what are the thesholds of contribution for them? Or is it best to save the money to help pay the bills!

Answer 1

No, you only get the basic state pension whatever it may be at the time.

Best to set up a private pension arrangement, if you are that way inclined.

Otherwise just use up the cash and have a great life, your only passing thru anyway.

Answer 2

Yes you will get a higher rate second state pension (used to be known as SERPS) which reflects the extra contributions you have made.