why do we pay national insurance

We pay National Insurance (NI) as a specific type of tax that funds key state benefits and services in the UK. Primarily, it supports the NHS (National Health Service), the State Pension, unemployment benefits, sickness and disability allowances, and other contributory benefits such as maternity allowance and bereavement support. Paying NI is essentially contributing to a social security system that provides financial support during illness, unemployment, retirement, or other life challenges. National Insurance contributions are made by employees, employers, and the self-employed starting from age 16 up to the State Pension age, based on earnings thresholds. These contributions build entitlement to the State Pension and other benefits, effectively acting as a safety net for workers. The goal is to ensure everyone pays into the system and can claim benefits if needed later in life, especially retirement pensions.