Where does your National insurance contribution go? After those years of working hard, where does your tax or contribution go? How about your savings? You need to start saving some money aside for the rainy day so that after retirement, you will have some money to rely on. If you have worked passionately in your life and now, you need to rest or take a break, there must be a plan, shouldn’t it?
Why do you pay National Insurance Contribution?
National Insurance Contribution helps to pay for some state benefits including retirement pension which you might be entitled to if you have worked over certain years. Just like someone who has been working all his or her life but due to an unforeseen illness or health condition, such a person had to give up work or business. Such contribution will help as a pension or state benefit depending on the law of that country where the person resides. What does he or she fall on? Savings or contribution or government benefit? That will depend on a person’s status and working history. I remember speaking with a mortgage adviser recently who asked me about my pension plan, he insisted I contact all those places I have worked in the past so that I can ask about my Contribution. Although, not taking my pension out but at least to have a clue how much I have contributed so far while I was an employee.
Can you continue to live younger without needing to retire?
A woman is struggling today due to a sudden illness that left her alone without much coming in for her. This woman in her early 60s has worked for over 40 years in Britain but she cannot afford to heat her house at night which is so teary. Where will we be when we are in our late 60s or 70s or older? Do you think it will go on like this where we wear what we like, fly around the planet as we like or drive the fastest car we wish at an older age? Some people have relocated to a different country or their fatherland but the poor economy of that country isn’t helping some of them. Although, some people are lucky overseas or back in their fatherland. Who collects the money we paid to the government when we were working at a young age? Such money is the retirement pension!