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Maydup | 11:16 Fri 28th Jan 2022 | Business & Finance
16 Answers
I’m no longer working and living off savings and a small draw down on my personal pension. I’m below state pension age.

The draw down is above the NI threshold, will I need to pay NI on it? Will it be looked after in my self assessment or should I be doing something else.

I have over 40 years NI record and no gaps so have no need to pay any voluntary contributions.

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Yes and yes.
Question Author
Thanks!

I’ll do the self assessment then, post April, and if I need to pay NI, it’ll be charged at that point.

You don't pay NI on pension.
Answer is definitely no. I draw a pension from prev job and its above the ni threshold hold but there's no NI. I checked the rules and it's defo no NI on pension income ...even if you have other income has ni deducted
3Ts will no doubt be along soon to explain his mistakes...he is definitely wrong.
Ttt is wrong.. Pensions are taxable taking into account other income but there is no NI on pension earning's
^^^^ the key phrase here is "I’m below state pension age. " - so maydup is referring to the time between now and when he reaches pension age. Yes there is indeed no NI after pension age is reached. My answers reflect that. 237sj/bob/gingejbee will no doubt be along soon to explain why they failed to read the question.
apologies "he" is a "she"!
I'm below pension age. Age don't matter...no pension income is liable to NI even if your only 50 .
OK apologies, I miss read the government site, anything you get from a pension is not subject to NI.
I'd check your state pension forecast. You may find some year's don't count if you were contracted out pension scheme at work. It may be worth paying some voluntary ni
Question Author
Thanks all, I’m pleased to have these updates. I have done a pension forecast and no gaps in my NI no reason to pay voluntarily.

The main thing is that should anything change in a future budget it will be looked after in the self assessment anyway. But for now I pay nothing hoorah!
Am just curious as to why your doing self assessment...won't you just have a tax code for your pension through PayPal??
I typed PAYE ...not paypal
Question Author
I dont pay through PAYE as mine is a personal pension, not one through an employer or anyone else who can deduct tax from me. I can chose how much to draw down and need to do a self assessment on my income.

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