Money Tax Smart

Once you reach State Pension age, you usually stop paying National Insurance (NI) contributions, even if you keep working. This means less money is deducted from your earnings, boosting your take-home pay. Employees need to show proof of age, such as a birth certificate or passport, to their employer to stop NI contributions. Self-employed people stop paying Class 2 contributions and are exempt from Class 4 contributions from the next tax year after reaching State Pension age.

You’ll still get the State Pension and other benefits based on your contribution history. Stopping NI contributions doesn’t affect your State Pension, as it depends on payments made before you reach State Pension age.