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  • FIRST POST
    • The stingemeister
    • By The stingemeister 12th Nov 17, 3:36 PM
    • 303Posts
    • 31Thanks
    The stingemeister
    Logistics of early retirement?
    • #1
    • 12th Nov 17, 3:36 PM
    Logistics of early retirement? 12th Nov 17 at 3:36 PM
    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.
Page 2
    • thepurplepixie
    • By thepurplepixie 14th Nov 17, 2:18 PM
    • 869 Posts
    • 1,562 Thanks
    thepurplepixie
    Well they shouldn't do.

    Far more people will get the expected amount than was the case for the old system, and the range of potential pension is also less than the old system.

    If you pay in for the defined period under the new system you get the pension amount. Under the old system then people could get £119 or much less, and I think some people were pushing £300 with s2p, SERPS, graduated pension etc depending on their historic level of earnings.

    It will get simpler but it's a long process because it was so complicated.
    Originally posted by bigadaj


    Maybe they shouldn't but they will. If I had stayed in my old job and pension scheme my entitlement under the old scheme would have been £119 and under the new system ninety something, I can't remember the exact figure. Because I left my old job and didn't join a new pension scheme I get the £119 plus enough S2P to get roughtly £160 a week. Of course that would have been balanced by the increase in my private pension. I am basing this on my forecast and I only have a few months to wait.

    I don't get what you mean about paying in for the defined time and getting less than £119 under the old scheme, if you paid in for the defined time you did get the £119 but under the new scheme people like me who have paid for much longer than the defined period, say over 40 years, they might not get the full pension because they have been contracted out for a considerable period.

    Just realised I am wrong as the £90 something a week would have been less if I had continued in my old pension scheme.

    It will change over time but it is very confusing at the moment.
    Last edited by thepurplepixie; 14-11-2017 at 2:22 PM.
    • bigadaj
    • By bigadaj 14th Nov 17, 6:56 PM
    • 10,725 Posts
    • 7,012 Thanks
    bigadaj
    Maybe they shouldn't but they will. If I had stayed in my old job and pension scheme my entitlement under the old scheme would have been £119 and under the new system ninety something, I can't remember the exact figure. Because I left my old job and didn't join a new pension scheme I get the £119 plus enough S2P to get roughtly £160 a week. Of course that would have been balanced by the increase in my private pension. I am basing this on my forecast and I only have a few months to wait.

    I don't get what you mean about paying in for the defined time and getting less than £119 under the old scheme, if you paid in for the defined time you did get the £119 but under the new scheme people like me who have paid for much longer than the defined period, say over 40 years, they might not get the full pension because they have been contracted out for a considerable period.

    Just realised I am wrong as the £90 something a week would have been less if I had continued in my old pension scheme.

    It will change over time but it is very confusing at the moment.
    Originally posted by thepurplepixie
    No, it was very complicated and is getting simpler over time.

    We're in danger of this turning into another waspi thread, there's plenty of information available and notice for people to see what they can and will get. If they won't inform themselves then it can't be that important, and they shouldn't moan.
    • thepurplepixie
    • By thepurplepixie 14th Nov 17, 9:04 PM
    • 869 Posts
    • 1,562 Thanks
    thepurplepixie
    It will get simpler overtime but it will take quite a while. At the moment it is more complicated and the problem with people looking for information is that if they think they know the answer then they won't go looking for it.
    • bigadaj
    • By bigadaj 15th Nov 17, 6:37 AM
    • 10,725 Posts
    • 7,012 Thanks
    bigadaj
    It will get simpler overtime but it will take quite a while. At the moment it is more complicated and the problem with people looking for information is that if they think they know the answer then they won't go looking for it.
    Originally posted by thepurplepixie
    Maybe, the only short term complication is the need for an additional calculation, which determines which option is more beneficial.

    If people think they know the answer and are wrong then there's little anyone else can do unless they are prepared to ask.
    • Silvertabby
    • By Silvertabby 15th Nov 17, 10:44 AM
    • 1,807 Posts
    • 2,230 Thanks
    Silvertabby
    “ It will get simpler overtime but it will take quite a while. At the moment it is more complicated and the problem with people looking for information is that if they think they know the answer then they won't go looking for it.
    Originally posted by thepurplepixie
    Maybe, the only short term complication is the need for an additional calculation, which determines which option is more beneficial.

    If people think they know the answer and are wrong then there's little anyone else can do unless they are prepared to ask. Posted by bigadaj
    Exactly. Most of the 'complaints' about the new scheme are from those who just read the tabloid headlines: "New State pension will be £150 per week" and didn't have the nous to read further.

    The information was certainly there - when I read one of the first newspaper articles I had a moment of panic because I thought that, having always been contracted out, I wouldn't get any State pension. It didn't take much effort to read further and to find that I would get at least the pension I would have received under the old scheme.
    Last edited by Silvertabby; 16-11-2017 at 9:35 AM.
    • thepurplepixie
    • By thepurplepixie 17th Nov 17, 2:31 PM
    • 869 Posts
    • 1,562 Thanks
    thepurplepixie
    Well people do believe headlines in the tabloids and they are often misleading. In this case I find it is people who aren't really affected who don't questions the headlines, I'm mid 60s so know a fair few people who have retired in the last ten years and the ones who are getting the old pension are very quick to assume they have missed out when for many of them they would have been no better off under the new system and that many who retired more recently or are about to retire haven't actually gained anything. Jealousy can be so unpleasant and if they think you have ended up gaining something they certainly let you know. Change is bound to lead to confusion.
    • kidmugsy
    • By kidmugsy 17th Nov 17, 5:20 PM
    • 9,851 Posts
    • 6,644 Thanks
    kidmugsy
    very quick to assume they have missed out
    Originally posted by thepurplepixie
    I think we need an agreement to deliver a sharp kick to people who whinge that they've "missed out" or "lost out" unless they can point to an actual loss.
    Free the dunston one next time too.
    • Nullboris
    • By Nullboris 19th Nov 17, 3:23 PM
    • 5 Posts
    • 3 Thanks
    Nullboris
    "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."
    I am 60 and when I received my latest gov pension forecast it was for £133 .. however many of the years were marked as too late to pay, and it implied I cannot pay any further amount to make up for "insufficient" years.
    So I cannot buy extra years ,
    • Linton
    • By Linton 19th Nov 17, 3:35 PM
    • 8,496 Posts
    • 8,445 Thanks
    Linton
    "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."
    I am 60 and when I received my latest gov pension forecast it was for £133 .. however many of the years were marked as too late to pay, and it implied I cannot pay any further amount to make up for "insufficient" years.
    So I cannot buy extra years ,
    Originally posted by Nullboris
    I dont think you have stated your circumstances. Many people who retire early with insufficient NI years or a reduction because of being contracted out can make up the deficiency with extra voluntary payments.

    I believe "forecast" means if you continue to pay NI until State Pension Age. In that case you wont have the spare years whilst not in work to buy extra NI.
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