Logistics of early retirement?

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The_stingemeister
The_stingemeister Posts: 374 Forumite
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in Pensions, annuities & retirement planning
Being mortgage free and with savings I wonder what are the "nuts and bolts" of packing in work completely, but being too young for a state pension? Correct me if I'm wrong but I think with 35 years full contributations its possible to get a full pension once you reach 65-68? What about, say, 10 years of retirement with no national insurance or tax contributions during that time, will you receive a reduced pension because of that?

Money-wise I believe I can budget the savings ok, and also keep fit.
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  • The_stingemeister
    The_stingemeister Posts: 374 Forumite
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    Sorry, think this post would be better in the Pensions and retirement section :o. Please could someone kindly move it there, don't know how to or whether I can...:beer:
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
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    If you have the full contributions, you will get a full State Pension,even if you don't pay any after taking early retirement.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • Gers
    Gers Posts: 12,032 Forumite
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    seven-day-weekend wrote: »
    If you have the full contributions, you will get a full State Pension,even if you don't pay any after taking early retirement.


    Not in every case! I have 47 years full NI contribution but still not entitled to a full SP due to being contracted out for many of those years.

    I stopped working in 2014(my aimed for SP date until the reforms) and then decided to work part time for two years to add enough NI contributions to ensure I will get a full SP.

    Best place is the Pensions board, someone there will also direct you to check the state of your pension on https://www.tax.service.gov.uk/check-your-state-pension

    Planning beforehand is very wise.
  • thepurplepixie
    thepurplepixie Posts: 3,600 Forumite
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    Gers wrote: »
    Not in every case! I have 47 years full NI contribution but still not entitled to a full SP due to being contracted out for many of those years.

    I stopped working in 2014(my aimed for SP date until the reforms) and then decided to work part time for two years to add enough NI contributions to ensure I will get a full SP.

    Best place is the Pensions board, someone there will also direct you to check the state of your pension on https://www.tax.service.gov.uk/check-your-state-pension

    Planning beforehand is very wise.

    Very true, I have 49 years contributions and reach my SRP age within the year and I don't qualify for the full pension on the new scheme due to being contracted out. Fortunately for me on the old pension I get more than the new pension due to S2P and SERPS. Looking forward to the boost in my income as I am basically retired although I have a small online business and do some consulting work.
  • missile
    missile Posts: 11,689 Forumite
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    It is risky to base your plans on todays state pension, who know what the rules will be in 10 years time?
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • no1catman
    no1catman Posts: 2,972 Forumite
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    I regard my pension as a full one, because of working time, however the level of the enhancements may be different to others as I opted out.

    I retired in Feb., but waited until the start of the next tax year, before taking the State Pension - getting I think another 1% per month in the process.
    I used to work for Tesco - now retired - speciality Clubcard
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
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    Sorry, I forgot the rules had changed. OP, please ignore what I have said!!
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • lessonlearned
    lessonlearned Posts: 13,337 Forumite
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    Perhaps your best bet is to contact the pensions service in Newcastle for a forecast.

    Although as others have pointed out if you have 10 years to go then there could be further government changes before then.
  • alanq
    alanq Posts: 4,216 Forumite
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    The_stingemeister wrote: »
    Sorry, think this post would be better in the Pensions and retirement section :o. Please could someone kindly move it there, don't know how to or whether I can...:beer:

    Thread moved from Over 50s Money Saving at OP's request.
  • Linton
    Linton Posts: 17,162 Forumite
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    With 35 years NI contributions whether you get the full new State Pension, or one smaller or larger, depends on the number of years during which you were contracted out which could give you less or contracted-in with relatively high earnings which could give you more.

    You can get apply for a pension forecast online, by phone, or by post - see here.

    If it turns out that you have accrued less than a full state pension you can buy extra NI years after you stop working and before you reach state pension age. Each extra NI year will raise your pension by about £4.50/week until you reach the full amount.
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