Independent Financial Life Planners Bishop's Stortford: Do you know where you are with you NI?

Friday, 2 September 2016

Do you know where you are with you NI?

Enable’s IFAs of Bishop’s Stortford regularly help people plan for their retirement. Financial planning for your later years is essential so it is striking to see that according to research by one pension provider 8 out of 10 Britons don't know how many years of National Insurance (NI) contributions are needed to qualify for the full welfare payment.

It would also seem that a third of people have no idea that a career break could harm their state pension payments. With so many new pension opportunities and regulations it is important to know that under the new state pension, introduced in April, workers must have made at least 35 years of NI contributions to receive the full pay-out, currently £155.65 a week. (This is 5 more years of contributions than previously required.)

Women can be particularly at risk of not having paid the full number of years as 6 in 10 women have taken a career break of at least a year at some point in their life. Another thing many people don't realise is that there are some steps, such as claiming child benefit that can mitigate the impact of fewer years of NI contributions. Kate Smith, head of pensions at Aegon UK, said: “The fact that 80 per cent of people don’t understand the potential implications of career breaks on their state pension just highlights the sheer scale of the task ahead to properly educate people about the new state pension.” An inquiry by the Commons Work and Pensions Committee earlier this year found just weeks before the introduction of the new state pension many people were left "unprepared and confused". If you want to make sure you are prepared and not confused about your pension provision Enable’s IFAs in Bishops Stortford are here to help.

Source: http://www.express.co.uk/finance/personalfinance/701094/state-pension-confusion-over-national-insurance-contributions

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.