debate about opting out and basic state pension

taktikback

hmmm -do I detect a splash of red in the hyubh household?..

grey_gym_sock

kidmugsy wrote: »

As a rule of thumb, people who bang on about Mrs Thatcher may be viewed as mad, bad, or dangerous to know.

so they're rather like mrs thatcher

jamesd

Your friend is wrong and has the full basic state pension entitlement in addition to whatever can be provided from the investments used in the contracted out pension pot. If the proposed flat rate cut to pensions for employees happens your friend is likely to benefit because the money from the external pension pot will be in addition to the potential £144 flat rate, though it'll take more years to get to £144 than for someone who didn't contract out.

Contracting out under Thatcher was a good deal and looks set to remain a good deal for those who did it at any time.

margaretclare

I was contracted-out during the years I was paying into the NHS pension scheme. DH, by contrast, was never contracted-out and he gets a similar amount of SERPS (now called S2P) equal to the amount of the basic SRP.

The OP's friend must have been very ill-informed from the start and cannot blame any politician for that. What on earth caused him to think that he would lose all of his state pension? You would think that people would take the trouble to be better-informed abut something so important.