State Pension Advice Please

AnnW56

My retirement age is 66, I'm now 58. I had a pension forecast letter in 2008 telling me that I had 35 qualifying years at that point. If I decided to stop working before I reach retirement age, would I still get the full state pension at 66 please?

Thank you for any advice you can give

jem16

AnnW56 wrote: »

My retirement age is 66, I'm now 58. I had a pension forecast letter in 2008 telling me that I had 35 qualifying years at that point. If I decided to stop working before I reach retirement age, would I still get the full state pension at 66 please?

Thank you for any advice you can give

Yes, as far as your entitlement to the basic state pension is concerned. However what may change is your entitlement to any additional state pension even though you will be taking your new pension under the new flat rate pension rules.

Were you ever contracted out of the state 2nd pension?

AnnW56

Thank you for the quick reply jem16, the honest answer to that is I don't know. The forecast says that the figure is made up of: basic state pension, additional state pension and graduated retirement benefit. Does that help?

jem16

AnnW56 wrote: »

Thank you for the quick reply jem16, the honest answer to that is I don't know. The forecast says that the figure is made up of: basic state pension, additional state pension and graduated retirement benefit. Does that help?

So you have had a forecast?

If it's currently higher than £144pw you would get that anyway.

jamesd

What does your forecast say you'll get? The older flat rate state pension figure was £144, after inflation adjustments to when it comes in that will be around £155. When that system starts everyone will get a foundation amount calculation that will set their level to the higher of the old rules or new rules calculation. If you have more than the new flat rate starting level you'll get your current higher level instead. If you get less you'll be able to buy extra at a reasonable price or just keep working until you get to the flat rate level. Each year worked after introduction will add about £4.10 towards the older £144 value from a few years ago.

A person who will reach their state pension age after the flat rate scheme is introduced will stop accumulating more state pension once they reach the flat rate income level. It's very likely that you have either already reached that or will soon and that yes, you could retire and get the full flat rate state pension soon.

If you aren't at £155 yet you can get the number of years you need to work by subtracting what you have so far from 155 then dividing that answer by 4.42. 4.42 is just £155 divided by 35 years to get the increase for each year worked under the flat rate system.