Early Retirement

Jack_Itin

Xylophone, Thanks for that, all very interesting, I shall look into it....Jack

kidmugsy

Jack_Itin wrote: »

Thanks for that, all very interesting

Interesting? There we differ. Pensions are important, not interesting.

Jack_Itin

Maybe ''interesting'' was an overstatement......important they certainly are, as lots of young people today will find out, as they don't have one, I consider myself very lucky, to be able to retire at 62 years of age, with a reasonable pay out, although, had I have given it more thought when younger , it could have been even better......hindsight is a marvellous thing........Jack

SeekTruth

jem16 wrote: »

There wouldn't be any point as you have way more than the maximum of 35 years needed.

Agree that there is no point in paying voluntary contributions for the years up to April 2016.

However, I haven't checked through the whole thread carefully but I think the OP reaches State Pension Age after April 2016 and has been contracted out. If this is the case then it is possible that his Foundation Amount will be lower than the full Single Tier Pension. So it may be worth paying voluntary NI contributions for some years after April 2016.

Assuming autocredits (see http://www.hmrc.gov.uk/manuals/nimmanual/nim41245.htm) still exist then they may cover one or more of those years.

jem16

SeekTruth wrote: »

However, I haven't checked through the whole thread carefully but I think the OP reaches State Pension Age after April 2016 and has been contracted out. If this is the case then it is possible that his Foundation Amount will be lower than the full Single Tier Pension. So it may be worth paying voluntary NI contributions for some years after April 2016.

My understanding of voluntary NI contributions is that they only apply to filling in the gaps for the basic state pension which the OP obviously has already enough for even under the new rules.

Is there something else that anyone who has been contracted out would benefit from after 2016?

jem16

jem16 wrote: »

My understanding of voluntary NI contributions is that they only apply to filling in the gaps for the basic state pension which the OP obviously has already enough for even under the new rules.

Is there something else that anyone who has been contracted out would benefit from after 2016?

Answering my own question but found the info where it could be a benefit to the OP but not till after 2016 when more details are known.

See page 9.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf#page5

Jack_Itin

Jem, Thanks for that, I guess that I need to see what happens after April 2016, or at least in the run up to that date, it looks like it MAY be advantageous for me to pay the extra N.I. cons........Jack

Jack_Itin

Another question, My scheme booklet says that the cash lump sum is tax free '' at the moment''......this has not changed recently has it ? with all the changes happening thought it wise to check.........Jack.

greenglide

Jack_Itin wrote: »

Another question, My scheme booklet says that the cash lump sum is tax free '' at the moment''......this has not changed recently has it ? with all the changes happening thought it wise to check.........Jack.

No it hasn't changed and there are no plans to do so.

The pensions schemes always have to say this as it is something outside their control and the government could always change this "at any time".

Jack_Itin

Greenglide, Thanks for that, just making sure.........Jack