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[Lincs Robert]

There is another factor about the state pension which you need to be aware of. It relates to the number of contributing years you have - as these might not be as they seem.

If you were "contracted out", then you won't get full contributions for the period that you were out for.

You can do an online check and I'd urge that you do as I got a shock when I did it recently. My record came back and said that I'd got 43 years worth of contributions in the system, but needed another 3 years worth still to earn before I'd earned my full state pension.

Check it soon as then you might have time to something about it. I'm lucky in that I've still got time left to catch-up before my state pension is due at 66.

Hope this helps - Rob

[STEMO]

I checked mine, 37 qualifying years, you need 35 for a full pension.

[Entwood]

There is another factor about the state pension which you need to be aware of. It relates to the number of contributing years you have - as these might not be as they seem.

If you were "contracted out", then you won't get full contributions for the period that you were out for.

You can do an online check and I'd urge that you do as I got a shock when I did it recently. My record came back and said that I'd got 43 years worth of contributions in the system, but needed another 3 years worth still to earn before I'd earned my full state pension.

Check it soon as then you might have time to something about it. I'm lucky in that I've still got time left to catch-up before my state pension is due at 66.

Hope this helps - Rob

While factually correct, these comments omit a few salient points that are also worth considering ..

If you are "contracted out" then .. by definition.. you are part of a workplace pension scheme that is investing the "contracted out" portion of your National Insurance Payments along with any personal or employer contributions.

The reality is that the investment returns on these funds is probably far higher (although in theory could be less, but in that case its a REALLY bad scheme you are in) than the difference between a "full" state pension and the "contracted out" state pension.

You are not "losing out" in any way, and are probably better off when you add your state pension to the higher workplace pension you get due to the additional "contracted out" payments made over the years.

If you make the additional payments to "top up" the contribution levels then, yes, you'll be better off in income terms, but the additional payments can be quite high, so should be viewed as short term investment with a low return.

HTH 

[jonathanh]

Contracting out ceased in april 16.  So we are all contracted in now. In any event when you contracted out you earned the state second pension but also had a serps deduction. The deduction was never equal to the state pension you built up, even as far back as the 80s

The real point is that there is a change being planned for those borne after march 1970 but another review in 2023. We may see another change then

[STEMO]

Contracting out ceased in april 16.  So we are all contracted in now. In any event when you contracted out you earned the state second pension but also had a serps deduction. The deduction was never equal to the state pension you built up, even as far back as the 80s

The real point is that there is a change being planned for those borne after march 1970 but another review in 2023. We may see another change then

Yeah, my missus was CO until April 2016. After that her NI contributions went up slightly..forget how much. She also moved on to a career average pension rather than final salary, but she can still take the final salary pension at 60, but obviously at a much reduced rate.
Last time I looked she had built up a £14000 pa pension and a £78000 lump sum. That's hers, it can't be touched. She is now paying into the pension she will get at 68. The idea is that she will work till 68 and get both pensions....we'll see.

[Lincs Robert]

There is another factor about the state pension which you need to be aware of. It relates to the number of contributing years you have - as these might not be as they seem.

If you were "contracted out", then you won't get full contributions for the period that you were out for.

You can do an online check and I'd urge that you do as I got a shock when I did it recently. My record came back and said that I'd got 43 years worth of contributions in the system, but needed another 3 years worth still to earn before I'd earned my full state pension.

Check it soon as then you might have time to something about it. I'm lucky in that I've still got time left to catch-up before my state pension is due at 66.

Hope this helps - Rob

While factually correct, these comments omit a few salient points that are also worth considering ..

If you are "contracted out" then .. by definition.. you are part of a workplace pension scheme that is investing the "contracted out" portion of your National Insurance Payments along with any personal or employer contributions.

The reality is that the investment returns on these funds is probably far higher (although in theory could be less, but in that case its a REALLY bad scheme you are in) than the difference between a "full" state pension and the "contracted out" state pension.

You are not "losing out" in any way, and are probably better off when you add your state pension to the higher workplace pension you get due to the additional "contracted out" payments made over the years.

If you make the additional payments to "top up" the contribution levels then, yes, you'll be better off in income terms, but the additional payments can be quite high, so should be viewed as short term investment with a low return.

HTH 

Yes, I was aware of that and deliberately left that part out as I felt it clouded things - just wanting to focus on state pension entitlement - if you see my logic?

There is a massive variance in what people of a similar age have accrued in terms of company pension entitlements. Some have massive pensions/entitlement whilst others have zero and will have to rely on the state pension plus benefits.

So, comments welcome, as always, but I tried to focus things - perhaps I should have stated that.

Rob

[LC0112G]

There is another factor about the state pension which you need to be aware of. It relates to the number of contributing years you have - as these might not be as they seem.

If you were "contracted out", then you won't get full contributions for the period that you were out for.

You can do an online check and I'd urge that you do as I got a shock when I did it recently. My record came back and said that I'd got 43 years worth of contributions in the system, but needed another 3 years worth still to earn before I'd earned my full state pension.

Check it soon as then you might have time to something about it. I'm lucky in that I've still got time left to catch-up before my state pension is due at 66.

Hope this helps - Rob

The is a roughly an 8-9 year window if you reach SP age between 2016 and 2024 when this can happen. The govt calculated your starting amount at April 2016. If you had anything approaching a full NI contribution record up to that date, then the least you could receive under the old rules would have been £119 - the value of the old basic state pension at that time. Then for every full NI year post 2016 you get roughly £4.50 added up to the limit of £159. So (159-119)/ 4.5 is 9 years to make up the differernce. Many people will have at least some SERPS/S2P entitlement even if they were in a contracted out scheme, so will have a higher starting amount, and therefore require fewer years to make up to the maximum.

After 2024 virtually everyone with 35 years NI contributions will get the new full state pension amount.

[LC0112G]

There is a massive variance in what people of a similar age have accrued in terms of company pension entitlements. Some have massive pensions/entitlement whilst others have zero and will have to rely on the state pension plus benefits.

The level of the new State Pension has been set to be just above the current Pension Credit amount. The aim appears to be to remove Pension credit, meaning that it'll be state pension only. Anyone planning on receiving benefits in retirement is probably in for a rude shock.

Everyone needs to ask themselves if can they live on £8k a year (or £16K per couple) from their 66/67/68th birthday till they die. If the answer is no, then you need to do something about it sooner rather than later.

[TheBoy]

Everyone needs to ask themselves if can they live on £8k a year (or £16K per couple) from their 66/67/68th birthday till they die. If the answer is no, then you need to do something about it sooner rather than later.

But so many in the UK don't see why they should, and the authorities should support them....

[LC0112G]

Everyone needs to ask themselves if can they live on £8k a year (or £16K per couple) from their 66/67/68th birthday till they die. If the answer is no, then you need to do something about it sooner rather than later.

But so many in the UK don't see why they should, and the authorities should support them....

In which case they'll get what the government/electorate decide they can have/afford, rather than having a choice in the matter because they have their own extra income. 

[TheBoy]

Everyone needs to ask themselves if can they live on £8k a year (or £16K per couple) from their 66/67/68th birthday till they die. If the answer is no, then you need to do something about it sooner rather than later.

But so many in the UK don't see why they should, and the authorities should support them....

In which case they'll get what the government/electorate decide they can have/afford, rather than having a choice in the matter because they have their own extra income.

But there will be outrage and vigils

[Migv6 le Frog Fan]

What they will actually have is a lot of money the country doesn't have, as always. The left have such a grip on the media and most other levers of power, that even when they are out of office, they still largely dictate the agenda.
Maybe it will take a term of Corbyn in office to put a stop to this for a generation, until another bunch of 18 year olds who cant remember the ruination of sociaistl policies come and along and the cycle repeats itself.