Paying "full stamp" (whatever that is?)

Our financial circumstances mean that we can afford for my wife to shortly reduce her working hours to approximately 90 every four weeks (3 days x 7.5hrs per day).
At £6.50 an hour,
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indicates she'll pay zero in tax and £1.56 in NI.
Good times for her but what are the implications for a future State pension?
She's paid in for 28 years (she's 46) but still obviously has 14 (or is it 19?) years to retirement........I can't imagine HMG allowing her to draw a full pension when she's only effectively contributed for that time (even though she's working).
What's the position? All advice appreciated.
Reply to
Tim Richards
If I remember correctly, she only has two years to make up, before she is fully paid up for the basic pension. You can pay additional contributions to do that.
Reply to
David Woolley

Our financial circumstances mean that we can afford for my wife to shortly reduce her working hours to approximately 90 every four weeks (3 days x 7.5hrs per day).
At £6.50 an hour,
formatting link
indicates she'll pay zero in tax and £1.56 in NI.
Good times for her but what are the implications for a future State pension?
She's paid in for 28 years (she's 46) but still obviously has 14 (or is it 19?) years to retirement........I can't imagine HMG allowing her to draw a full pension when she's only effectively contributed for that time (even though she's working).
What's the position? All advice appreciated.
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David W is correct - your wife (being a comparative youngster...!) requires only 30 qualifying years. And she will be credited with a full year of contributions for State Pension purposes, providing she earns at least £107 / week gross (2012-13). Your figures suggest she'll comfortably exceed that - but will only have to pay 12p NI per 4-weeks.
HTH
Reply to
Martin

If you earn the right amount, you can qualify for a state pension without paying a penny in NI or even get a rebate paid into an occupational pension.
Reply to
S
If you're otherwise not employed but have any employment that can be classified as self-employed (eg sell a few widgets on ebay), you can pay Class 2 NI contributions (something like £2 a week) and that's sufficient to count as an NI 'stamp'. So for £100 a year you get covered, and then if you don't earn enough there's no extra NI to pay. You'd probably have to do a tax return though.
Theo (IANA tax accountant)
Reply to
Theo Markettos

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