should we be pay NIC?
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Now I'm not saying that we shouldnt and that its pointless as the economy relies on a cycle of money, im just trying to spark a discussion.
But if youre paying your NIC for a state pension to get x amount. But a private pension can get you (x*3) as much. why would you pay it when your already being taxed a lot.
But if youre paying your NIC for a state pension to get x amount. But a private pension can get you (x*3) as much. why would you pay it when your already being taxed a lot.
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#2
(Original post by Frank Peters)
Now I'm not saying that we shouldnt and that its pointless as the economy relies on a cycle of money, im just trying to spark a discussion.
But if youre paying your NIC for a state pension to get x amount. But a private pension can get you (x*3) as much. why would you pay it when your already being taxed a lot.
Now I'm not saying that we shouldnt and that its pointless as the economy relies on a cycle of money, im just trying to spark a discussion.
But if youre paying your NIC for a state pension to get x amount. But a private pension can get you (x*3) as much. why would you pay it when your already being taxed a lot.
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(Original post by Quady)
Private pension wouldn't be x*3 if you put in NIC min contributions.
Private pension wouldn't be x*3 if you put in NIC min contributions.
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#4
(Original post by Frank Peters)
ok but a private pension gives considerably more than a state pension.
ok but a private pension gives considerably more than a state pension.
Working above NLW (£9/hr) for 40hrs a week youd pay £1,100 NICs a year.
Do that from age 16 to age 68 you'd pay £57,200.
For that youd get an index linked pension of £9,100/annum.
Where are you finding an annuity or drawdown approach which yields that kinda payout?
Even if you ignore the state pension isn't the only benefit NICs provides entitlement for.
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(Original post by Quady)
Mind working me through how you calculate that?
Working above NLW (£9/hr) for 40hrs a week youd pay £1,100 NICs a year.
Do that from age 16 to age 68 you'd pay £57,200.
For that youd get an index linked pension of £9,100/annum.
Where are you finding an annuity or drawdown approach which yields that kinda payout?
Even if you ignore the state pension isn't the only benefit NICs provides entitlement for.
Mind working me through how you calculate that?
Working above NLW (£9/hr) for 40hrs a week youd pay £1,100 NICs a year.
Do that from age 16 to age 68 you'd pay £57,200.
For that youd get an index linked pension of £9,100/annum.
Where are you finding an annuity or drawdown approach which yields that kinda payout?
Even if you ignore the state pension isn't the only benefit NICs provides entitlement for.
Also, 9k a year is incredibly low amount.
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#6
(Original post by Frank Peters)
Now I'm not saying that we shouldnt and that its pointless as the economy relies on a cycle of money, im just trying to spark a discussion.
But if youre paying your NIC for a state pension to get x amount. But a private pension can get you (x*3) as much. why would you pay it when your already being taxed a lot.
Now I'm not saying that we shouldnt and that its pointless as the economy relies on a cycle of money, im just trying to spark a discussion.
But if youre paying your NIC for a state pension to get x amount. But a private pension can get you (x*3) as much. why would you pay it when your already being taxed a lot.
Similarly, personal pensions do not offer guaranteed income - investment performance, fees, and annuity rates all make it impossible to forecast accurately how much you will get.
I've paid UK NI, and currently expect to get sweet Freddie Allen for it. Should I get a refund of contributions?
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#7
(Original post by Frank Peters)
what other benefits would these include?
Also, 9k a year is incredibly low amount.
what other benefits would these include?
Also, 9k a year is incredibly low amount.
- Contribution-based/New Style Jobseeker's Allowance (JSA)
- Contribution-based/New Style Employment and Support Allowance (ESA)
- Bereavement Benefits
- Satutory sick pay
Ok..... I asked how a private pension was more lucrative. Annuity rates aren't good.....
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#8
(Original post by RogerOxon)
NIC is just another tax - it is not a separate pot of money, and it guarantees you nothing.
Similarly, personal pensions do not offer guaranteed income - investment performance, fees, and annuity rates all make it impossible to forecast accurately how much you will get.
I've paid UK NI, and currently expect to get sweet Freddie Allen for it. Should I get a refund of contributions?
NIC is just another tax - it is not a separate pot of money, and it guarantees you nothing.
Similarly, personal pensions do not offer guaranteed income - investment performance, fees, and annuity rates all make it impossible to forecast accurately how much you will get.
I've paid UK NI, and currently expect to get sweet Freddie Allen for it. Should I get a refund of contributions?
https://en.m.wikipedia.org/wiki/National_Insurance_Fund
And no, that's not how 'insurance' works is it?
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#9
(Original post by Quady)
The NI Fund is separate, at least in terms of accountancy.
https://en.m.wikipedia.org/wiki/National_Insurance_Fund
The NI Fund is separate, at least in terms of accountancy.
https://en.m.wikipedia.org/wiki/National_Insurance_Fund
(Original post by Quady)
And no, that's not how 'insurance' works is it?
And no, that's not how 'insurance' works is it?
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