Taking redundancy

[walkinthepark]

Hi hope someone can help.

 

I'm taking redundancy money soon and I want to take a year out to set up a project I have in mind. I have enough money to live on for a year so I won't be accessing any benefits as I don't want any hassle to get another job. I'm concentrating on getting a grant for this new project and going out promoting it.

 

Someone's told me they think I will still have to sign on else it might affect my state pension. Does anyone know anything about this?

 

Thank you.

[honeybee13]

Hello there.

 

I think not paying NI for a year could affect your State pension. I can't remember the exact number of years you need to contribute for, but you can check out your own pension position on the Benefits Agency website. I'll have a look for a link.

 

If you don't sign on for jobseekers, you can make voluntary NI contributions that I believe protect your pension.

 

It's something worth checking.

 

My best, HB

[honeybee13]

Here's a link to the pension calculator.

 

https://www.gov.uk/state-pension-statement

 

HB

[honeybee13]

And this is the basics on voluntary NI contributions. You might want to ring the helpline for more information.

 

http://www.hmrc.gov.uk/ni/volcontr/basics.htm

 

HB

[walkinthepark]

Thanks a lot for this I really appreciate it. It's put my mind at rest.

[ericsbrother]

The amouint of NI contributions you need to make over your working lifetime meand that taking a year out wont affect your pension. It used to be that you needed 44 years and then 40 and now it is 35 at the minimum contribution level to get your state pension. Unless you have been a student for a long time before your working life I wouldnt bother about a year. You can try claiming benefits and get your NI contributions paid as a benefit under certain circumstances but the JSA route would be burdensome in your case.

[walkinthepark]

I really don't want to go down the benefits route because it's my passion to get this project off the ground. I just wanted to make sure I'd covered all bases. Thank you for your input.