Making up your pension

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
2 replies 726 views
shown73shown73 Forumite
1.3K Posts
Part of the Furniture 1,000 Posts Combo Breaker
✭✭✭
This may be old news, but there was a report in my paper, (Times), today about people who choose to pay more into their pension to make up for lost years, which may have been through family reasons, sickness, being abroad, or whatever.
Apparently the number of required qualifying years is going to be reduced, with the net effect that, anyone due to retire after 2010 could be wasting their money, because under the new rules they may well qualify for a full pension anyway.
That's the gist of it, although, sadly, I left my paper at work, and am doing this from memory, but it seemed important enough to post right away. No doubt it will be expanded and posted again in the future, if it really does take place.

Replies

  • CISCIS Forumite
    12.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    The rules that may be introduced bring the required qualifyng years down to 30 for people retiring after 6/4/2010, according to initial plans it will be an overnight change,so if its introduced those retiring before 6/4/2010 will still need the 44yrs.

    Although a minister stated that the plans will go ahead, its still up in the air and until it is confrmed its not a good idea to firmly count on it happening - an overnight change is probably a very bad idea and I suspect it will be toned down and phased in.

    Too many times Ive dealt with people who've heard plans in the past and based their plans on that assmption and lost out (I was a state pension advisor), in my opinion its just too early to plan.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • EdInvestorEdInvestor
    15.7K Posts
    ✭✭✭✭✭
    Here's the BBC reportof the Revenue warning

    If you already have 30 years' contributions ( the planned new minimum) and are due to retire after 2010, IMHO you could consider holding off until the position becomes clear.

    You can "catch up" with payments 6 years in arrears, so if the plan doesn't go ahead, you shouldn't lose out as long as you later resume payments and make sure you make the back payments.
    Trying to keep it simple...;)
This discussion has been closed.
Latest MSE News and Guides

Card providers to reserve up to £100

When you pay at supermarket fuel pumps

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals