National Insurance

All UK residents over the age of 16 and earning an income through employment or self-employment must make National Insurance contributions throughout their working life. You only stop making National Insurance contributions when you reach the State Retirement age, which is currently 65 for men and 60 for women (although the women's State Retirement age is set to increase to 65 in the near future). At the point of retirement you are eligible for a State Pension, which is an income that you receive from the Government to support you throughout your retirement. The amount of money that you receive through your State Pension depends on the amount that you have paid in National Insurance contributions over the course of your working life.

Your National Insurance contributions are recorded through your National Insurance number, which is unique to you and assigned to you as soon as you start work. HM Revenue & Customs (HMRC) and your employer use your National Insurance number for tracking your contributions (based on your earnings), and it is also used if you claim social security benefits or a student loan. You may also need to provide it if you apply for an Individual Savings Account (ISA). Because your National Insurance number acts as a reference for all of your social security data, you should not reveal the number to anyone except for the reasons mentioned above. If your number falls into the wrong hands, you could be at risk of identity fraud. If you don't have a National Insurance number, you can apply for one by calling the National Insurance allocation helpline on 0845 600 0643.