should we be pay NIC?

Watch
Frank Peters
Badges: 19
Rep:
?
#1
Report Thread starter 9 months ago
#1
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.
0
reply
Quady
Badges: 20
Rep:
?
#2
Report 9 months ago
#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.
Private pension wouldn't be x*3 if you put in NIC min contributions.
0
reply
Frank Peters
Badges: 19
Rep:
?
#3
Report Thread starter 9 months ago
#3
(Original post by Quady)
Private pension wouldn't be x*3 if you put in NIC min contributions.
ok but a private pension gives considerably more than a state pension.
0
reply
Quady
Badges: 20
Rep:
?
#4
Report 9 months ago
#4
(Original post by Frank Peters)
ok but a private pension gives considerably more than a state pension.
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.
0
reply
Frank Peters
Badges: 19
Rep:
?
#5
Report Thread starter 9 months ago
#5
(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.
what other benefits would these include?
Also, 9k a year is incredibly low amount.
0
reply
RogerOxon
Badges: 21
Rep:
?
#6
Report 9 months ago
#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.
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?
0
reply
Quady
Badges: 20
Rep:
?
#7
Report 9 months ago
#7
(Original post by Frank Peters)
what other benefits would these include?
Also, 9k a year is incredibly low amount.
- Maternity Allowance
- 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.....
0
reply
Quady
Badges: 20
Rep:
?
#8
Report 9 months ago
#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?
The NI Fund is separate, at least in terms of accountancy.
https://en.m.wikipedia.org/wiki/National_Insurance_Fund

And no, that's not how 'insurance' works is it?
0
reply
RogerOxon
Badges: 21
Rep:
?
#9
Report 9 months ago
#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
It's not really though. Specifically, your contributions don't get invested to pay for future pensions, they get used to fund current ones. Given that, the lack of a guaranteed pension amount is a problem, especially with the way demographics are going.

(Original post by Quady)
And no, that's not how 'insurance' works is it?
IMO, the only "insurance" aspect, is health.
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Do you have the space and resources you need to succeed in home learning?

Yes I have everything I need (365)
56.24%
I don't have everything I need (284)
43.76%

Watched Threads

View All
Latest
My Feed