Answers · UK 2025/26
Do I pay National Insurance on my pension?
No. You stop paying National Insurance on all UK pension income — State Pension, workplace, personal and SIPP drawdown — regardless of your age. You also stop paying NI on employment earnings once you reach State Pension age (currently 66), although Income Tax still applies.
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National Insurance is only charged on earned income from employment or self-employment. Pension income — State Pension, defined-benefit pensions, drawdown from a SIPP, annuity payments, and the taxable 75% of a flexi-access lump sum — is exempt from NI at any age. Income Tax still applies in the normal way: pension income is added to other taxable income and taxed at 20%, 40% or 45% depending on the band. If you carry on working past State Pension age (currently 66 for both men and women), you stop paying employee NI from the week you reach SPA, even though Income Tax continues. Tell your employer by showing them a birth certificate or HMRC certificate of age exception. The employer, however, still pays employer NI at 15% on your salary above the £5,000 secondary threshold in 2025/26.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.