Maximizing retirement income

[danmay]

Hi
can anyone offer me some sensible advice,
i currently own 4 properties that i let out,

i am soon to retire and wondered what the situation is regarding paying national insurance contributions on my income

the properties are owned 50/50 with my wife . She will have a small work pension but i will only have the income from the properties,.

We will both be under the legal retirement age

Would i have to pay national insurance as well as tax, if so would it be better for me to set up as a sole trader and pay it this way

i have scoured the web but cant find any sensible advice
thanks
dan

[Mrs Mug]

I was reading up on this the other day. See below.

https://www.gov.uk/national-insurance

[theartfullodger]

I've not paid NI since reaching state pension age.

[danmay]

Thanks for the link, i forgot to mention that i am still 10 years off the state retirement age so the no contribution rule i think still applies

[King_Maker]

It is most unlikely that a rental business will amount to a trade, so Class 4 NIC should not apply.

However, Class 2 NIC might apply. This could be somewhat academic if the Budget 2015 proposal to abolish Class 2 goes ahead.

[andybenw]

How many years contributions have you made so far. I think if 35 years you do not need any more (on current rules) payments to recieve full state pension. So if you've worked from 18 to 55(37 years) you should be ok.

[theartfullodger]

Cautionary tale:

The wife gets a bit less that full state pension due to incomplete NI payments, and she reached state pension age before me (blatant sex discrimination btw...). I topped mine up with £££££ as when I did top up rules said I should... Govt changed the rules, I had not needed to & would have got what I get, full state pension.

Moral: They get you, one way or another....

[danmay]

yes i have pad in for 35 years , i was more concerned about if i have to continue to pay and if i did would i be liable to pay
thanks
dan

[theartfullodger]

Go to Gov.uk/DWP & ask for a pension estimate:They'll tell you how you stand re. contributions (and also their records are different from yours - eg I found I'd worked for someone for 2 years who had my NI down with 1 digit wrong: Bet when you look at your payslip there's only one number you usually check..)

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

At some point, with benefits spend being more than 50% on old people (me included) some chancellor is going to start cracking down on the real benefit costs, not fiddle round the edges being unpleasant to the disabled or hard-of-thinking as now......

Cheers!