State Pension Contributions

Your entitlement to, and rate of, state retirement pension will be determined by the national insurance contribution paid over your working life. If you retire early, due to redundancy, INTO would recommend that you obtain a 'Retirement Pension Forecast Form’ - BR19) from you local social security office.

You should complete and return it to the address quoted on it. In reply you will receive a forecast of your state retirement pension entitlement. You will be able to see what effect, if any, non-payment of national insurance contributions up to age 60 will have on the rate of your state pension. If nonpayment has the effect of reducing the rate of your state pension normally there could be a number of options to offset this: -

(1) Paid employment - paying national insurance contributions.
(2) Claiming social security benefits or signing for credits.
(3) Paying voluntary (Class 3) national insurance contributions.

In considering whether or not to exercise this option, INTO would strongly advise that you seek an assurance from (Social Security Agency or Inland Revenue Contributions Agency) that payment of these contributions will be of benefit in determining the rate of your state retirement pension.