National insurance exemptions to working pensioners, including farmers, may be one of the chancellor's targets in the autumn budget.

NFU Mutual found that approximately 899,000 pensioners benefited from exemptions to national insurance contributions (NICs).

This is a 43% increase compared to 2020-2021 which benefitted 597,000 and cost the government £840 million.

That figure has now reached £1.2 billion according to NFU Mutual.

The insurance company said farmers make up a large percentage of pensioners who continue to work into their retirement.

Figures from the Department for Environment, Food and Rural (DEFRA) show that 40% of all farm holders in England are aged over 65.

National Insurance

Chartered financial planner at NFU Mutual, Sean McCann said it is possible that those still working while receiving their pension may be asked to contribute to the national insurance.

“With the self-employed paying 6% national insurance on earnings between £12,570 and £50,270 and 2% on anything above, change in policy could see a pensioner with profits of £25,000 pay an additional £745 a year," McCann said.

He said the chancellor could “soften the blow” by charging a lower rate to reflect that they are already receiving their pension.

“With the chancellor keen to put the public finances on a more stable footing, it’s possible that working pensioners will be asked to shoulder some of the burden,” he added.

Figures

For many farmers, farming is not considered a job, it is a lifestyle and whether the choice be through necessity or pleasure, many farmers continue working well into their pension.

Those who choose to continue working still pay income tax while their employers continue paying NICs.

Figures from the Department for Work and Pensions (DWP) show that the proportion of 65–69-year-olds had risen from 15.8% in 2006 to 29.7% in 2026, while the 70-74 age bracket had gone from 5.6% in 2006 to 11.9% in 2026.

DWP data found that working pensioners had an average median income of £446 per week – with 4% bringing in income of £1,500 or more per week.