Pension query?

[helpimcrap]

Hi all,
Question on pensions so i know.

If i have completed my required amount of NI years to earn a full state pension upon retirement, can i halve it or cancel it without any repercussions i.e. reduced pension?

My thinking is once i achieve maximum and i'm guaranteed it,it cannot be taken away, so i cancel or go onto half pension contribution and then put the rest into a private pension?

I've tried looking for answers but found nothing. I don't mind paying into a pension obviously as i want to pay my way, but it got me thinking when looking at additional pensions of which i am in.

 

[helpimcrap]

Hi, you are misunderstanding me. NI is a given - like death and taxes.

I'm talking about pension contributions only. Once i reach max NI/pension can i opt out and put the money to better use?

 

[helpimcrap]

I'm confused to what you mean. State pension is part of your NI. You can't change that. Unless I'm very mistaken.

Are you talking about your state pension, or a private/work pension?

You have to have a workplace pension now since the government realised no one had one and was retiring for free. This is the one i've on about.

I pay NI, that isn't what i'm asking. As long as i work i will pay NI. I'm talking about the pension contributions on top of that.

In a few years i reach the maximum i can have when i retire - £180 curtrently with max of £203 a week (currently before yearly inflation). The pension i pay for currently will not increase that past it's maximum. Do i have to continue paying or is it a waste for me personally as i won't see any of it? I'll be paying into a pot that covers others who haven't paid in?

I have additional contributions and private pension on top of that but i was just wondering if i could cancel my work place pension and put it all into my additional pension which i would see some return on.

Paid into a private pension because the car insurance offered a discount on additional product so bought a pension and saved 25% on my car insurance.

I've not au fae with the pension side of things and don't really understand it.

 

[helpimcrap]

No.

NI deductions have nothing to do with your private employer pension. Your state pension entitlement has nothing to do with your private employer pension. NI isn’t just for your state pension entitlement either.

I think you’re confused about what NI is - although that’s not your fault as it should arguably just be wrapped up into income tax.

Ah so the workplace pension i'm paying into is on top of my NI contributions. NI = state pension, and workplace pension is extra i get when i retire?

 

[helpimcrap]

Thank you for the clarity. Very helpful.

Some things to look into.

 

[helpimcrap]

Company pension is on top of state pension.

If the company matches up to 4% for example, if you don't pay the 4% then you're throwing away the 4% from the company.

State pension plus the minimum company pension contribution isn't a lot, most people want to be contributing more than that to maintain the lifestyle they're used to.

As you've maxed the state pension you can't be that far off retirement - so I strongly suggest you get some pensions advice to make sure you set yourself up for the type of retirement you want. At the very least do some reading and use calculators to forecast your situation.

over 20yrs until retirement lol.

But yeah, i get the idea and it is something i am starting to look at. Get mortgage out of way first.