Workers in the dark over National Insurance

August 29, 2016 | 6years | NEWS AND INTEREST

Thanks to automatic enrolment, more people than ever are planning for their retirement and getting their personal pension provision on track. But what about their state pension? Many people rely on this form of income and see it as a given, but unfortunately, a worrying proportion could end up missing out.

Lack of NI awareness

Research from Aegon has highlighted a clear lack of awareness when it comes to National Insurance (NI) contributions, particularly among those who have taken career breaks, with many at risk of not qualifying for the new state pension.

The figures show that 80% of respondents don't know the number of years they need to make NI contributions for in order to qualify for the full £155.65 a week, with 57% underestimating the number of years needed. A further 33% were unaware that taking long career breaks – and not paying NI contributions during that time – could mean they won't qualify for the full amount, a finding that's particularly concerning given the number that could miss out: over half (55%) have taken a career break of at least a year at some point, rising to 61% among women.

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