The traditional card will be replaced with a paper letter from late next year, according to a BBC report.
The letter will inform people of their National Insurance number once they turn 16.
The idea was among more than 100,000 suggestions made by the general public and civil servants on a website set up by the Treasury asking for ways they could cut the deficit.
Other suggestions that are to be considered include selling off unwanted office furniture online and reducing the number of criminal checks for junior doctors.
It is hoped the ideas will save at least £1 million per year.
The government wants to reduce the budget deficit – which hit £155bn last year – by £80bn.
The GMB union has described asking the public for ideas to save money as a political gimmick intended to give the impression of support for the cuts.
However, George Osborne, the Chancellor, said it was a modern approach which will save money and involve people in the spending decisions affecting them.
National Insurance was introduced after the 1911 National Insurance Act was passed under then prime minister David Lloyd George.
The scheme, which came into effect in July 1912, was intended to create a national system of insurance for working people against illness and unemployment.
The system was "nationalised" in 1945, with the creation of the Ministry for National Insurance.
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National Insurance cards 'to be phased out'
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