The new second state pension enables spouses employed by professionals and the self employed to amass a pension worth many thousands of pounds without making any direct pension contributions. How can this work? The new pension will be payable to anyone earning above £3,900 per year but anyone earning less than £10,800 will accrue the second state pension at the rate applicable to the £10,800 rate. In essence this means that anyone earning between the £3,900 level and the National Insurance threshold of £4,500 will be eligible for the same second state pension as someone earning £10,800 but having paid NO TAX or NATIONAL INSURANCE CONTRIBUTION. An opportunity for the self employed and company director employing their spouse. And then there is Stakeholder?
Date:28 November 2003
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