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What is charterers contribution clause?

Pension Contribution Vs NI Contribution?

  • Hiya, Just wondering if some one can shed some light on the difference between Pension COntribution Vs NI contribution? I know if you are in the permanent role, the NI contribution is mandatory but is it the case with Pension Contribution as well?

  • Answer:

    NI is a TAX that is collected by your employer and paid to the Government (who then squanders it immediately = there is NO 'State Pension' fund and when you retire the ONLY way you will get a State Pension is out of the pockets of the Taxpayers of that time). A PENSION (as in private COMPANY PENSION) goes into a 'pot' of money that is invested and will pay you a Pension when you retire. The money is yours and (so far) only the last Labour Government saw fit to Tax it a bit (if you can call the £5 billion a year which is stolen out of our Pension funds by 'good old Gordon Brown' a little 'bit'). If the fund does badly you get less Pension .. If you work for the Government (for example, you are a Teacher) your Pension contributions are NOT 'saved' into any sort of fund - just like NI, the Government takes the money and spends it today. Teachers Pension benefits are TOTALLY ARBITRARY and there is NO connection between what they pay in and how much they benefit (it has been estimated that to get the same benefits in private sector you would have to put in 50% of your salary !) .. Teachers pensions come out of Taxpayers pockets ..

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Other answers

National insurance (NI) is a tax. It is deducted from every wage packet on all earnings above £139 per week (about £602 per month). It does not matter if you are permanent, temporary, full time or part time. If you earn more than the threshold in a week/month then you pay NI. Pension contributions are (at the moment) voluntary, and can only be deducted if you have chosen to opt in. The amount goes into a fund that will pay you a pension when you retire. The exact amount deducted depends on the kind of scheme you are in and what you have decided. Your employer may also add to your contribution. Although these deductions are entirely voluntary, if you are thinking of stopping the paymments you should talk to a financial adviser (or at least the person at work or organises the pension). This is because there may be consequences for what has already been paid in.

SimonC

You will be coned out of your pension what ever you decide. I have worked for 50yrs and now get £86 a week. what seems a good deal now, will not look so good in 50 years time. Realey its just another Tax. I would also like to say, when i started work I started with nothing, and i've still got most of it left.

Oldman

national Insurance contribution years count towards the (currently 30) years you need to get the full state pension. After that there is opt in and opt out - and that connects to an approved pension scheme.

Petrusclavus

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