Uk Old Age Pensions

[mucker1234]

Question for a friend:

His wife has an ILR visa and works 16 hours a week in a shop and has done for a year though this is her first job in the UK. She is 38. She isn't paying national insurance given the hours she works. Assuming she continues in this work pattern, would she be eligible for a UK state pension? She will apply for citizenship in one year I think.

Thanks

[7by7]

The UK state pension is contribution based; how much someone gets depends on their NI contributions. If she reaches retirement age and hasn't paid sufficient, then I'm afraid it's no pension.

See Qualifying for a basic State Pension.

[steve187]

She would get a pension based on her husbands contributions unless the rules change prior to her becoming of age, she could pay voluntary contributions to get a pension in her own right, or she could become self employed and pay self employed stamp which is only about £2.00 per week, she could get credits if she has been a parent or a carer, all on the link at post 2

Edited January 2, 2012 by steve187

[7by7]

She would get a pension based on her husbands contributions unless the rules change prior to her becoming of age

I stand corrected.

[mucker1234]

She would get a pension based on her husbands contributions unless the rules change prior to her becoming of age, she could pay voluntary contributions to get a pension in her own right, or she could become self employed and pay self employed stamp which is only about £2.00 per week, she could get credits if she has been a parent or a carer, all on the link at post 2

So, if she get a pension based on her husband's contributions (I assume they would be full) then what would be the point of paying voluntary contributions?

[steve187]

Things could change in the future, and your wife has 30 years to go before claiming state pension, which is enough years to get a full pension in her own name, earnings up to £102.00 ( 2011 - 2012) per week are free from national insurance, tax allowances are higher £143.00 per week before tax.

By my caculations your wife at 16 hours x £6.08 ( minimum wage)is earning £97..28 just £5.00 short of paying N.I. So could your wife work one more hour to make her liable to N.I contribution, or is that why her company only employ her for 16 hours. if your wife has to pay N.I so does her employer at a higher rate than your wife.

Self employed (class 2) 'stamp' is £2.50 per week, voluntary (class 3) 'stamp' is £12.60.

class 2 can also be paid whilst in Thailand to top up, any shortfall of the 30 years from the uk.should your wife move back to thailand before pension age. must have lived and paid N.I. for three years in the UK. see here - http://www.hmrc.gov....ontr/abroad.htm

Edited January 3, 2012 by steve187

[ludditeman]

Claiming unemployment also gives 1 year of contributions for each year claimed.

Having a child used to entitle a woman to the next 19 years NI contributions (only counts once, might have changed in the last few years).

[Johnniey]

Things could change in the future, and your wife has 30 years to go before claiming state pension, which is enough years to get a full pension in her own name, earnings up to £102.00 ( 2011 - 2012) per week are free from national insurance, tax allowances are higher £143.00 per week before tax.

By my caculations your wife at 16 hours x £6.08 ( minimum wage)is earning £97..28 just £5.00 short of paying N.I. So could your wife work one more hour to make her liable to N.I contribution, or is that why her company only employ her for 16 hours. if your wife has to pay N.I so does her employer at a higher rate than your wife.

Self employed (class 2) 'stamp' is £2.50 per week, voluntary (class 3) 'stamp' is £12.60.

class 2 can also be paid whilst in Thailand to top up, any shortfall of the 30 years from the uk.should your wife move back to thailand before pension age. must have lived and paid N.I. for three years in the UK. see here - http://www.hmrc.gov....ontr/abroad.htm

I thought they changed the number of years to 20.

[steve187]

Things could change in the future, and your wife has 30 years to go before claiming state pension, which is enough years to get a full pension in her own name, earnings up to £102.00 ( 2011 - 2012) per week are free from national insurance, tax allowances are higher £143.00 per week before tax.

By my caculations your wife at 16 hours x £6.08 ( minimum wage)is earning £97..28 just £5.00 short of paying N.I. So could your wife work one more hour to make her liable to N.I contribution, or is that why her company only employ her for 16 hours. if your wife has to pay N.I so does her employer at a higher rate than your wife.

Self employed (class 2) 'stamp' is £2.50 per week, voluntary (class 3) 'stamp' is £12.60.

class 2 can also be paid whilst in Thailand to top up, any shortfall of the 30 years from the uk.should your wife move back to thailand before pension age. must have lived and paid N.I. for three years in the UK. see here - http://www.hmrc.gov....ontr/abroad.htm

I thought they changed the number of years to 20.

No changed men from 44 to 30, not sure if women were already 30 or they changed as well , but now all are at 30 years.

Edited January 4, 2012 by steve187