National insurance when drawing pension?

Question

hello im being made redundant soon im 54 and i can draw my pension straight away its about £12000 a year i assume i will pay tax on it at the lower rate but will i pay national insurance aswell. im getting a lump sum of £46000 which will clear the morgage and leave me about £16000, so I dont think i will be able to claim benefits unless anybody knows different.

thanks.

Answer 1

You can pay class 3 NI stamp to make up payments for a full pension. The 44 qualifing years has been reduced for anyone reaching 65 after April 2010  

Answer 2

You will pay TAX but no NI on your personal pension. You will not get your state pension until 65, and the amount you get will be reduced if you do not contribute for the next 11 years.

Are you not going to look for another job? If not then you will have to get in touch with the benefits agency to see what you may or may not be entitled to.

Answer 3

You will not pay NI on your pension, however you will need enough years on your NI to get a full State Pension, if you do not intend working again you will need to make voluntary payments.  If you do intend to work you can sign on and you should be entitled to "Jobseeker's Allowance".

The "lower rate " is now 20%.

Answer 4

you will pay tax on your Pension at 20 percent on anything above your personal income tax thresehold; but not NIC, if you have over 16K in savings left once you pay your mortgages etc you will not be entitled to any means tested benefits like Council tax benefit, Income support and JSA Income Based

You can claim JSA Contribution based if you intend looking for work (or saying that you intend to) it is 60.60 per week, paid on the basis of your NI record and paid for 28 weeks, savings do not affect the payment.

Answer 5

Read all about benefits on here..

http://www.scribd.com/doc/5205/The-Gueri...

just scroll down to each page,

plus you need 44 years ( at the moment ) to qualify for full pension from the government.

Hope it helps