National Insurance Contributions

Has anyone heard that if you work for 20 years in full time employment you have paid all your National Insurance that you ever need to, and you can then opt out of paying full National Insurance and just pay the lower rate ?

Any one know of this or is it just one of those myths ?
If you are in employment under the age of 65 you pay NI contributions, whether you are fully paid up or not!

You used to have to pay class 1 NI for 44 years to qualify for full state pension however this has recently changed but information is hard to find, the standard answer from HMRC is to apply for a state pension forecast and see if you have paid enough to qualify. It's only really an issue if you take early retirement as you may then have to pay voluntary class 3 contributions to ensure a full pension. There is no "opt out" scheme if you are working and earning over £4250 pa.

See HMRC's website.

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