NI and Pensions

[LucasMorro]

Your thoughts on how the abolition of NI may lead to changes in investment strategies and the use of investment products such as ISAs and pension funds are very interesting. This highlights the importance of flexibility and adaptation in financial planning in response to changes in legislation and tax policy.

[csearle]

Your thoughts on how the abolition of NI may lead to changes in investment strategies and the use of investment products such as ISAs and pension funds are very interesting. This highlights the importance of flexibility and adaptation in financial planning in response to changes in legislation and tax policy.

Hi, how did you discover The Lemon Fool? C.

[Nimrod103]

Your thoughts on how the abolition of NI may lead to changes in investment strategies and the use of investment products such as ISAs and pension funds are very interesting. This highlights the importance of flexibility and adaptation in financial planning in response to changes in legislation and tax policy.

Hi, how did you discover The Lemon Fool? C.

It's an AI comment isn't it?

[csearle]

Hi, how did you discover The Lemon Fool? C.

It's an AI comment isn't it?

In an abundance of caution I'm challenging the poster with a non sequitur. C.

[Charlottesquare]

most workers will, with contributions from their employers, have paid 20% of salary for their entire working life.
In 2022 the median salary was about £30k. Assuming that someone starts work in 22 at the age of 20 and works until 67 that's 47 * £6k.
That's over £1/4 mill. No small sum.

One could argue that it is a folly to work extra years once you have qualified for a full pension. And especially since you can buy back any "missed" years worth of contributions at a bargain rate.

I earned 18 years worth of stamps, maxxed out buying back years, and from next week will be getting close to a grand a month in SP. That is a decent deal. If I had worked 47 years, not so much.

But isn't the real problem those who still get a SP or equivalent without contributing at all?

Of course if contracted out for years working a few more years can claw back the contracted out reduction and get one the full state pension (I should be there in one more year)

I think (hard to know precisely as Contracted Out fund got blurred into my general SIPP) that my protected rights contracted out fund is circa £240k out of my total SIPPs, at say 4% dividends plus growth that ought to add circa £15k extra pensions plus I should receive full basic state pension when I retire in two years age 66 (As long as I do not live too long) and 25% of it ought to be tax free if they do not change the rules.

Extra years can have a benefit in certain circumstances. (I am well over 40 years contributions already, I think about 47 years in total now as even my school years 16-18 and all but one of my university years were qualifying.