Giving up working - what happens?
 

As my mid life crisis drags on, I'm constantly considering different options, and trying not to regret some of the opportunities I passed by, one of the remote choices is to give up work, downsize the house and live off the proceeds for a few years.
Question is, what are your obligations as someone who is not working? I'll still have to pay all the bills, council tax etc - I wont be claiming anything from the government, but do I still have to make payments in leiu of the NHS, state pension etc?

If you have enough money to live on and pay your normal bills I think your only complication would be your National Insurance contributions.You don't have to pay this,but you would possibly forfiet some or all of your pension.Have you thought about getting a part time job to eak out your life of leisure for longer,and it would pay your stamp and tidy up the bureaucracy?Bear in mind that you can earn nearly six grand a year before you need to pay tax,and another couple of grand paying only 10% tax.You would pay 11% National Insurance though.Or just sign on and scrounge like all the others.

Re: Giving up working - what happens?
 

When you find out, please let me know. :wink: I'm fed up with going to work; it gets in the way of my life.

Jeez I think I've found the answer, its a staggering £7.55 a week, or nearly £400 a year for 'voluntary' payments. I dont know if you can bulk buy the years after not paying for a while, but I guess if so it'll be even more expensive.
The govenment really do get you every way, they have already stuffed up my many years of pension planning in one swoop with their 'A' day amendments.

Have you considered downsizing a bit to release some capital/pay off mortgage and then doing a job you enjoy. Enjoyable jobs of course invariably mean crappy wages. An enjoyable job, or even a crappy but part time job could give you the work/life balance you're looking for provided that downsizing your home will mean you can live off less. Just remember that if you take a couple of years out then eventually you'll be skint and have to go back into full time employment and that will be a major shock to the system.
good luck anyway

Stewart

I did that when I moved my pension to Equitable Life :(

try the lottery.

i had an AVC with Equitable Life :( bad choice.

I'm about to take voluntary severance and was told yesterday that they'll pay/cover your NI contributions for four years if you don't work and don't claim job seekers allowance or benefits (that would also then give you cover on your NI contributions). That's four years ever, so if you've not worked for a few years in the past the allowance now will be less.

Anyone else confirm this?

Who is 'they' ? Your company, the govenment, ?

Oddly it looks like you could go self employed/ start a business, make no money at all but pay a much reduced contribution.

government

Thats interesting - wonder if its a byproduct of taking severence, rater than just deciding to quit. there is no mention of it on the yougov website I scrutinized.

You could become self employed. :idea:

Class2 NI contributions are £2-10/wk but there is a "small earnings exception" of nearly 4.5K. If you do earn above the lower profit limit you pay Class4 also, but if you do a low income "part time" self employed job you can easily stay below the threshold or even below the small earnings exception.
http://www.hmrc.gov.uk/rates/nic.htm

You can defer payment (and subsequently backdate IIRC) for 6yrs I think, so no great urgency. A phone call will confirm your options.

Don't know what it's like in your neck of the woods, but gardening is a nice little number if your fingers are at all green. No overheads, no outlay, turn up and do the job, get paid, go home. :lol:

I do 1 day a week gardening as a regular job, other jobs as they come along and if I feel like it. Self employed means capital allowances for car, tools etc, plus percentages of fuel/insurance/MOT/servicing etc etc as expenses. Surprising how much you can get your profit down by :wink: .

Just depends if you can afford it really............. :-k

I did see that as a possibility, and taking advantage of the class 2, yes. As part of the downsize I'd move location, probably go west to Somerset - don't know what the part-time work is like there. Gardening sounds ok, dog walking even! Anything thats stress free and sensible hours, thats what I need to find. I used to have a sideline repairing pinball machines and jukeboxes, maybe pick up on that again.

That website link looks uber-complicated, looks like I've some studying to do; this helped it make sence http://www.hmrc.gov.uk/nic/background-nic.htm

Tigersaw,

Do whatever feels best for you.

I feel exactly the same, and I'm sure there's lots of others on the forum who hdave the same sentiments.

I've been mulling over doing different things for nearly a year. I'm waiting for Mrs Mass to go back to work before seriousley considering what to do.
The I.T. game for me, lost its sparkle a long time ago.

I've considered gardening, being sa general builder, even doing up houses for profit.

Who knows what I'll end up doing. One thing is for certain, I ain't plannin' on doing this stuff for the rest of my days.