Contracted out.

Bazofts_Revenge

I am now 45 and was contracted out of the State Pension from late 86 till mid 2009. How will this affect my State pension? Will I have time to pay in enough contributions if I am to receive the FULL state pension at 67?

molerat

Yes, but the "full" SP is not as high as you could have earned under the old scheme with the addition of Grad / S2P / SERPS. In April 2016 you will be given a starting figure, the higher of the new (x years - COD) or old schemes (already adjusted), and each further year will be added at the rate of around £4.20 per week until you reach the max 35 year figure which is currently around £148. As an example I spent most of my working life contracted out and my statement shows as £75 new pension and £130 old rules so I will start with £130 in 2016.

You will enter the new scheme at 46 so probably have a minimum of 28 years current contributions worth £3.77 per week basic pension = £105 plus any S2P etc. You then will have to work or buy the required further years contributions to take you to the max. Under the old scheme the basic pension accrual stopped at 30 years but the additional pension continued to accumulate giving some as much as £275 pw total.

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/372977/cps5t-may-14-v1.1.pdf

may be of interest.