Cessation of NIC for pensioners

When a person becomes a pensioner they apparently no longer have to pay NIC. If they are still working and earn over the personal allowance threshold, does this mean the income they were paying 12% on for NIC now becomes subject to 20% income tax so they are worse off?

Short answer - they wouldn't be worse off. Longer answer: It doesn't work like that - you pay tax AND national insurance at the appropriate rates on earned income. Once you reach state pension age you only pay tax on earned income. Note I've deliberately used the term "reach state pension age" rather than "becoming a pensioner". It's your age that is the trigger to stop paying NI, not whether you are receiving a pension.

Hi Euroqueen Anne,
It is correct that National Insurance contributions cease once customer reaches their state pension age.
There is no such change in deductions for Income Tax, that will continue if a customer is over the Income Tax Threshold.
Previously, if an individual earned over the Income Tax Threshold they would pay BOTH NI and Income Tax so it could be their total deductions are lower.
Thank you.