Should OAPs be forced to pay National Insurance contributions?

[LucyJ]

According to the Mail, a Tory called Sir Andrew Dilnot wants the Government to force those OAPs who are still in work to pay National Insurance on their income.

This makes sense to me. I know people will say that National Insurance is only there to fund your basic state pension, so why should you pay it when you've already qualified for your basic state pension?

BUT, surely older people who are in work are much wealthier than those in retirement. They can afford to pay more than retired OAPs. In my experience the only people who work past 65 are web designers and bankers etc.

[grassroots]

According to the Mail, a Tory called Sir Andrew Dilnot wants the Government to force those OAPs who are still in work to pay National Insurance on their income.

This makes sense to me. I know people will say that National Insurance is only there to fund your basic state pension, so why should you pay it when you've already qualified for your basic state pension?

BUT, surely older people who are in work are much wealthier than those in retirement. They can afford to pay more than retired OAPs. In my experience the only people who work past 65 are web designers and bankers etc.

This OAP is a registered carer to his wife who suffers from Parkinson's decease but when I applied for carers allowance I was refused because my pensions are above the threshold to qualify for CA . I served my country to earn one of those pensions and qualified for the state pension as of right . When I left the services I took out a private pension for further financial support in my old age , and am now penialised by the system for ensuring my standard of living didn't suffer in my retirement how can that be right . OAPs should not to penialised for investing in thier retirement .

[Albion102]

National Insurance is not a state pension contribution, it is effectively a mechanism for keeping the headline rate of income tax at a low level. The suggestion makes sense imho.

There are all manner of iniquities in the system unfortunately. If you have saved diligently and invested sensibly all your life, and your pension pot exceeds £1m, you are taxed at 55% on pension savings above this limit. It sounds a lot, but if you buy an indexed pension for you and your spouse, it only buys you £22k. If you are in a public sector pension scheme, you can have pension income of up to £50k before you fall into this tax regime.

At the end of the day, those of us who are 50+ are probably the last generation who will have sufficient pension provision to retire at all, so we shouldn't complain.

[silver fox]

This OAP is a registered carer to his wife who suffers from Parkinson's decease but when I applied for carers allowance I was refused because my pensions are above the threshold to qualify for CA . I served my country to earn one of those pensions and qualified for the state pension as of right . When I left the services I took out a private pension for further financial support in my old age , and am now penialised by the system for ensuring my standard of living didn't suffer in my retirement how can that be right . OAPs should not to penialised for investing in thier retirement .

Sadly I think your situation is not unusual, many pensioners who made provision for their retirement, find in too many cases that all they have actually achieved is to take themselves out of additional benefits.

I would suspect that you, in common with others had no wish to be reliant on other benefits, but to then find if/when extra help is needed your own diligence disqualifies from that extra help.

[Little Londoner]

This OAP is a registered carer to his wife who suffers from Parkinson's decease but when I applied for carers allowance I was refused because my pensions are above the threshold to qualify for CA . I served my country to earn one of those pensions and qualified for the state pension as of right . When I left the services I took out a private pension for further financial support in my old age , and am now penialised by the system for ensuring my standard of living didn't suffer in my retirement how can that be right . OAPs should not to penialised for investing in thier retirement .

Unfortunately I am in the same situation as you and I too am classed as getting sufficient so as not to qualify for Carers Allowance plus being taxed on my private pension.
I suppose that is our reward for not being a pair of system players who have never done an "honest" days work yet never seem to have problems in their old age.
But I was told from an early age that you only get what you work for, sadly some want everything without the "work" part.

[Hamble]

No.

Many careers are pulling back into the workplace to cover skill shortages and long term service value such as in the nhs and social services.

[Hamble]

To be clear this means state and private pension.

Higher wage earners in working life have paid more N.I than the lower paid.
Some careers such as medical Dr opt to pay an even higher pension contribution towards an earlier retirement increasing N.I contributions.

As there is a cap on the pension once that is reached it is not worth paying the extra contribution.

[Ceam]

I personally don't think you should be paying National insurance after retirement age. Income TAX yes but not national insurance.

On a side note and not really relevant but, Little Londoner you pay TAX on your private pension as it was tax exempt when you paying it in. Not an argument just a fact of why you are paying TAX now.

[said]

According to the Mail, a Tory called Sir Andrew Dilnot wants the Government to force those OAPs who are still in work to pay National Insurance on their income.

This makes sense to me. I know people will say that National Insurance is only there to fund your basic state pension, so why should you pay it when you've already qualified for your basic state pension?

BUT, surely older people who are in work are much wealthier than those in retirement. They can afford to pay more than retired OAPs. In my experience the only people who work past 65 are web designers and bankers etc.

Oh No they don't! What do we have kids for? If I had not been paying my contributions, I could understand - but not only have I been paying my contributions, I have had children to provide the state with their contributions as well. Mine was a single contribution, I have now provided four more contributions! So I have more than made up for mine.

[dav]

National Insurance is no longer ring fenced for specific spending. It's essentially just extra income tax. Makes more sense to merge it with the standard income tax figure and then people will see how ridiculously high general income tax is (for very poor services on the whole).

[Ceam]

Oh No they don't! What do we have kids for? If I had not been paying my contributions, I could understand - but not only have I been paying my contributions, I have had children to provide the state with their contributions as well. Mine was a single contribution, I have now provided four more contributions! So I have more than made up for mine.

Problem is your living to long and taking out more than you put in (in general, not you personally)

LucyJ, My Dad worked to the age of 75, He's far from being well off and was a shop fitter. A job many much younger than him couldn't/wouldn't do.

[said]

Problem is your living to long and taking out more than you put in (in general, not you personally)

LucyJ, My Dad worked to the age of 75, He's far from being well off and was a shop fitter. A job many much younger than him couldn't/wouldn't do.

In the UK, one pays tax on their earnings, and an additional National Insurance tax, then one pays tax on one's spending. A further tax is paid on one's savings, on stocks and shares, and more tax if you bequeath your savings to someone. One pays tax on a car, tax on the fuel to run the car, tax for the licence to run a car, tax on a house, Council Tax on services, one pays taxes on domestic fuel and water and a global warming tax, Insurance for the house - a form of tax and additional tax if you bequeath your house to someone. You pay taxes on imports and exports and additional taxes when those goods are sold. When you go away for a holiday, you pay airport tax, passports carry another tax, and you may need a visa - another form of tax. If you purchase alcohol or tobacco taxes even more taxes are paid. Have I left out anything? Surely the earlier kings in History who demanded that the people finance wars, would have been embarrassed to demand so much money from people?

[Ceam]

In the UK, one pays tax on their earnings, and an additional National Insurance tax, then one pays tax on one's spending. A further tax is paid on one's savings, on stocks and shares, and more tax if you bequeath your savings to someone. One pays tax on a car, tax on the fuel to run the car, tax for the licence to run a car, tax on a house, Council Tax on services, one pays taxes on domestic fuel and water and a global warming tax, Insurance for the house - a form of tax and additional tax if you bequeath your house to someone. You pay taxes on imports and exports and additional taxes when those goods are sold. When you go away for a holiday, you pay airport tax, passports carry another tax, and you may need a visa - another form of tax. If you purchase alcohol or tobacco taxes even more taxes are paid. Have I left out anything? Surely the earlier kings in History who demanded that the people finance wars, would have been embarrassed to demand so much money from people?

You trying to tell me something I don't know? If so you failed.

[said]

You trying to tell me something I don't know? If so you failed.

No! I think we are all fully aware of almost all the taxes we have to pay - but I bet there are more than I have mentioned. Does any other country pay as many taxes as we do in the UK?

[Ceam]

No! I think we are all fully aware of almost all the taxes we have to pay - but I bet there are more than I have mentioned. Does any other country pay as many taxes as we do in the UK?

I'd imagine just about every one.


Maybe a little less if you have to fend for yourself if you fall ill or are disabled.