State pension query

[Mr Celine]

I thought that if you were contracted OUT of SERPS then that was because you were enrolled in a company pension scheme

No, when you contracted out of serps your money is diverted to a pension company to invest (Prudential in my case) It is essentially treated like a private pension for you to take as and when with the usual 25%, annuity, drawdown etc options.

You are both right.

 

[Chislenko]

You are both right.

@Mr Celine has it in one, I was just quoting my personal circumstances.

I stayed contracted out until the bitter end when whichever government stopped it and am glad I did.

I can't remember the exact figures but somewhere on the government site it tells you the maximum you could have built up by staying contracted in and it is no where near what I am getting from contracting out notwithstanding that I also enjoyed the 25% tax free lump sum.

None of this however helps the people up thread who are still waiting to see what they are going to get at the eleventh hour so to speak.

 

[ebikeerwidnes]

So - to summarise

if you were contracted out then the money went somewhere
either a company pension - in my case which is why I said that
or a pension with a company like Prudential

so the money is somewhere waiting for you - you just need to find out where!

 

[Beebo]

I'm slightly confused by some of these posts, doesn't take much these days!!

I still have a year to go and if I go on the government website, put in my NI number, it tells me I will be getting £175 a week and some pennies.

I was contracted out of serps for a long time and am already recieving a pension from that.

My national insurance years, i.e. years in employment were 46, I would say at least 15, if not more were contracted out of seeps.

Was never fortunate enough to work for a company that offered a pension scheme.

Hence my confusion, if they can tell me what I will be getting with a year to go why can't they tell people who are on the verge of claiming their pension?

As I understand it £175.20 is the maximum pension anyone can currently get. There are a few rare exceptions.
You need a minimum 35 years of contributions.
Once you have paid 35 years you can’t stop paying.

 

[BoldonLad]

As I understand it £175.20 is the maximum pension anyone can currently get. There are a few rare exceptions.
You need a minimum 35 years of contributions.
Once you have paid 35 years you can’t stop paying.

£175.20 may well be the maximum State Pension, but, there are "add-ons", such as Serps etc. Plus, it depends when you reached State Pension age (and years of contributions). I am on the scheme before the current one, and get £720.28 per 4 weeks, ie £180.07/week.

I may be wrong, but, I think the qualifying years of contributions are 30 now. It is all on the Government Website, the tricky bit is working out the additional bits, it is fiendishly complicated, as only something dreamt up by Civil Servants can be.

 

[Chislenko]

£175.20 may well be the maximum State Pension, but, there are "add-ons", such as Serps etc. Plus, it depends when you reached State Pension age (and years of contributions). I am on the scheme before the current one, and get £720.28 per 4 weeks, ie £180.07/week.

I may be wrong, but, I think the qualifying years of contributions are 30 now. It is all on the Government Website, the tricky bit is working out the additional bits, it is fiendishly complicated, as only something dreamt up by Civil Servants can be.

Yes, was looking at that on the site, it was an extra amount for people born before a certain date.

 

[SpokeyDokey]

FWIW:

My forecast State Pension due to be paid from the end of next year is £10301 which was to be £13500-ish due to S2P payments but was then reduced due to a contracted out period.

It is not possible AFAIK to obtain any information as to how the amount of the contracted out reduction is derived.

 

[byegad]

I think the first payment comes about 6 weeks after your retirement date, but that might have changed by now.
Phone the helpline. They actually do help!

Yes I did my application on the phone 5 yrs ago and it was excellent in all respects. And yes it's paid in arrears.

 

[iluvmybike]

I may be wrong, but, I think the qualifying years of contributions are 30 now.

It was reduced to 30 at one point but then they changed it back again to 35 - my hubby got caught like that and it was too late at that point to buy back any missing years he had. His state pension was reduced

 

[BoldonLad]

It was reduced to 30 at one point but then they changed it back again to 35 - my hubby got caught like that and it was too late at that point to buy back any missing years he had. His state pension was reduced

Yes, it depends on your Date of Birth the keybdate appears to be 6th April 1951 (man), 6th April 1953 (woman)

https://www.gov.uk/state-pension/eligibility

https://www.gov.uk/new-state-pension/your-national-insurance-record-and-your-state-pension

then, there are the complications of Additional State Pension, but, again, depending on your Date of Birth, or, possibly, your partners date of birth

https://www.gov.uk/additional-state-pension

 

[Davos87]

So got this by txt message from DWP this morning the day after I turned 66. Looks like it’s sorted then and now await the letter winging it’s way to me outlining the detail of my new financial bounty.
Thanks for all the advice and helpful contributions:

We've processed your State Pension claim. We will send you a letter which will tell you everything you need to know. You do not need to contact us.

 

[FrankCrank]

Had a couple of friends back there badgering me to check out my UK Gov pension situation. As an expat, a few years back I made sure I had reached the 30 years of contributions so I'd get a full pension. As my friends alluded to, the goalposts have moved and I now need 35 years of contributions. There is a shortfall of 4 years contributions, which I have until 2027 to make, according to the website. I currently take a pension from a former employer, and this combined with the state pension in a few years, will exceed the 12,000 or so allowance, and make me a tax payer again. So, is it worth me topping up my state pension, only to pay more in tax?
I've never been very financially astute, so any advice would be greatly received

 

[Arrowfoot]

I was used to calendar monthly payment, so, the 13 * 4 weekly payment is quite nice, it means I have one month per year, with two pension payments, so, I can buy myself new "toys"

Many years ago, a new bank marketing manager took an extract of welfare payments made for the entire customer base. He did not know about the 1 month a year they would receive it twice. Based on that extract, new credit lines calculated and were automatically made to these customers where the extract had 2 months payments. They only realised the mistake when the collections dept saw spikes in the following months. Guy lost his job etc.

 

[BoldonLad]

Had a couple of friends back there badgering me to check out my UK Gov pension situation. As an expat, a few years back I made sure I had reached the 30 years of contributions so I'd get a full pension. As my friends alluded to, the goalposts have moved and I now need 35 years of contributions. There is a shortfall of 4 years contributions, which I have until 2027 to make, according to the website. I currently take a pension from a former employer, and this combined with the state pension in a few years, will exceed the 12,000 or so allowance, and make me a tax payer again. So, is it worth me topping up my state pension, only to pay more in tax?
I've never been very financially astute, so any advice would be greatly received

Even as a basic rate taxpayer, you will still get 80p of every £1 over the (current) £12500 tax free limit. Without knowing the cost of 4 years contributions, I cannot say, but, if you are healthy, I would guess it is worth it. Also would you pay tax in UK or wherever you are living now? You may qualify for tax relief if out of UK for prolonged period.

 

[byegad]

I cannot be sure it is still the same, but, I was paid approximately one weeks pension, a week after my birthday, then, every 4 weeks there-after.

I was entitled to state pension at 65 (2012). My birthday is on 6th of month, I received first payment, into my bank on 12th. Thereafter, as I said, every four weeks on a Friday. My NHI letter ends "89C", if that matters.

I was used to calendar monthly payment, so, the 13 * 4 weekly payment is quite nice, it means I have one month per year, with two pension payments, so, I can buy myself new "toys"

I find the 13 payments a pain. Having been paid monthly all my working life, the way the 4 weekly payment comes into my bank account is a pain. Making any estimate of how much money I have is left reliant on my knowing when the DWP payment comes in this month.
I do like the month when the extra payment comes in though!