Retirement, how much?

[Buck]

Always keep track of the small pensions.
On retirement we will have Julies 12 year Military pension, my current 28 year Military pension, (both contributory before anyone comments, 9% of gross salary / annum), ... state pension ... and a number of what we thought where small pointless works pensions .... but it turns out that they add up to the equivalent of an additional full state pension value for us ...
Keep track of the small pensions...

Particularly as many of us will have more than one pension in our working life. No longer is it a single company/employer from start to finish.

 

[ColinJ]

Particularly as many of us will have more than one pension in our working life. No longer is it a single company/employer from start to finish.

I paid into a scheme for only 2 years and then changed jobs and changed address. I forgot to inform the pension scheme of my move and eventually forgot that I had even paid into that scheme.

Decades later I saw a news report on how many pensions went unclaimed and it dawned on me that I should chase up mine. When I got in touch with the pension fund, they told me that they had been sending pension forecast letters to my old address every year. I ended up with a £2,000+ lump sum and have been getting £550-£600 a year for the past 6 years.

 

[ebikeerwidnes]

I paid into a scheme for only 2 years and then changed jobs and changed addresses. I forgot to inform the pension scheme of my move and eventually forgot that I had even paid into that scheme.

Decades later I saw a news report on how many pensions went unclaimed and it dawned on me that I should chase up mine. When I got in touch with the pension fund, they told me that they had been sending pension forecast letters to my old address every year. I ended up with a £2,000+ lump sum and have been getting £550-£600 a year for the past 6 years.

After only 2 years - WOW

 

[ColinJ]

After only 2 years - WOW

That's what I thought!

I was a bit hard up when I had to make the pension contributions and wouldn't have bothered if I could have got out of it at the time, but I am well up on the deal now and hope to get at least another 15 years of payments.

 

[mikeIow]

Check this out VERY carefully - if in any doubt get advise from a professional

My Dad had a pension that would, he was told, provide for himself and my Mum until the last one died
The way it worked was that he paid in until he retired then the money went into an annuity with the same company
As my Dad was badly injured during the war (it was a miracle I ever came to exist!!!) he assumed that he would be the first to shuffle off
When he was looking at retirement he discovered - via his accountant - that the annuity died when he did
My Mum would be left with naff all

He went rather medieval with the company and got them to give him all the money in order to shut him up - at the time that was not automatically an option
He then invested it via an IFA firm that specialised in retirement funds and it all worked out OK

but if he had retired before checking my Mum could have had problems
'luckily' she died first - by a few months only - so it wouldn;t have mattered - but that was 1/4 century later and the crystal ball was not working so they had to plan for all eventualities

so it is a case of check check check and then check again
and get it all in writing

Hope it all works out

I firmly agree with checking things - heck, even a company like Aviva will have literally hundreds of different schemes, partly through acquisitions over many years, and older ones will have been created to rules long since gone!
A pension for someone injured during the war (& I am a similar miracle - my father was sunk at Dunkirk 3 times, & into his 50s when I came along 🤪) is a very old scheme….and when you describe taking an annuity - well, they will all have their own rules (for what happens on death, growth rates, etc etc).

In general, it is fair to say that DC (defined contribution) schemes can be passed on to a person (or people) of your choosing.
If the schemes are online, you can often nominate those beneficiaries for yourself. My oldest scheme is a modest DB local authority one, now online…..plus, even if they are not online, a lot of scheme administrators will respond to questions fine, without the need for any paid professional advice.

But yes: check, check & check again, & if you want to pay someone to do that checking, that is your prerogative 👍

 

[ebikeerwidnes]

One thing about paying someone to do some checking is that if they get it wrong you may be able to get some compensation in some way

 

[yello]

I was contracted out for 38 years and when I checked my SP I will get the full Flat Rate SP and cannot increase it. I guess the fact I'd already paid in for the required 35 years and am still paying NI (total 44 years and counting) for no more benefit offsets any deduction for the contracted out period.

Ditto. Well, in as much as I got a near enough full pension after having been contracted out for a good period of time.

What I actually don't understand (and I'm not complaining, believe me!) is that I've had this more-or-less full pension for the last 15 odd years. I've managed to get this with 30 qualifying years (by the DWP's count) whereas I have 27 full years and several part qualified years by my count. Whether the part qualified years are added up, or my NI contributions over those 27 cover the extra 3, I don't know. In short, I qualified for a (near enough) full UK state pension before the age of 50.

Now I know the UK Govt figure that most people would continue on working, indeed had to continue on working beyond the age of 50, and of course there are winners and losers in any calculation, but I was pretty gobsmacked (is the word) when I found out.

I check it every year to ensure it stays the same, and I've spoken to DWP advisors a number of times and been assured it's all correct. One even told me it was testimony to me having worked hard all those years.... oh the irony, they obviously didn't know me! Sure, I've made voluntary contributions over the years to cover gaps (I was a self employed contract worker for most of that time) but myself and 'hard work' are rarely mentioned in the same sentence.

Edit: I qualified for a full state pension before April 2016 when the qualifying years were bumped (back?) up to 35 years. I think the fact I had already qualified (with 30 years) meant my entitlement was carried forward and I'm not required to contribute an extra 5.

 

[ebikeerwidnes]

Just come back from a family 'do' - I was talking to a bloke who retired about 10 years ago. He worked in the petrol chemical industry for a while and apparently their pension was very good - but every year that you worked after age 55 reduced your pension

Which I have never heard of
Naturally I am saying this based on something some bloke said so it may not be true

but it does show how you have to be aware of teh details before you make and decisions or plans
and you need to start making those decisions and plans before you are 55 if possible!

 

[Slick]

Just come back from a family 'do' - I was talking to a bloke who retired about 10 years ago. He worked in the petrol chemical industry for a while and apparently their pension was very good - but every year that you worked after age 55 reduced your pension

Which I have never heard of
Naturally I am saying this based on something some bloke said so it may not be true

but it does show how you have to be aware of teh details before you make and decisions or plans
and you need to start making those decisions and plans before you are 55 if possible!

Not sure about the pension being reduced but my works original pension stopped improving after a certain period and you could start to take a portion of it at that time. I know one guy who didn't understand this and lost out on both counts as not only did ge continue to pay in, he didn't take anything out.