State pension + lump sum drawdown

ric777

Hi, I've read through numerous posts but don't quite understand my own particular position.

1. re. the my State Pension entitlement. My forecast as at today shows 40 qualifying years, basic entitlement 113.10pw plus additional 33.55pw. My state retirement date is end Jan 2017 (age 65).

For approx. 3 years at ages 17 to 20 (1969 to 1972) I worked for the old MoD who had a non contributory pension scheme; I don't know if this counts as contracting out. But when I left I took a refund of 'contributions' so would hope it doesn't anyway.

From 1973 to 1985 (just under 12 years) I was in various public sector pension schemes and hence contracted out.

So my first question is how much state pension I will get at age 65 in 2017.

2. I transferred all my public sector entitlements to private pension arrangements in 1994 and have added to them and also closely monitored performance. Now I am deciding when to start drawing down from the pot(s) and have assumed I can take my 25% tax free sums in stages over several years, say in 5 year tranches; am I correct? And if so on what sum(s) is the 25% calculated i.e. at the date of first withdrawal or at each draw down date?

Thanks in advance for any help

ric

xylophone

Have you received your "bespoke statement"?

https://www.gov.uk/government/news/500-days-to-go-until-biggest-state-pension-overhaul-in-generations


"Today’s campaign launch follows the introduction last month of a new bespoke statement service giving people information about their starting amount and what they may be able to do to increase the level of their State Pension before they retire. Initially available to people within 5 years of retirement, this service will be expanded on a month-by-month basis.

Already, more than 18,000 people have received a statement."

With regard to your private pensions

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301563/Pensions_fact_sheet_v8.pdf

https://www.hl.co.uk/partners/search/new-pension-rules-changes-2015?theSource=PCGSI&Override=1&adg=G+SIPPENI+BDG&gclid=CJ6krMK1kcMCFUzMtAod3z8AJg

JezR

ric777 wrote: »

Hi, I've read through numerous posts but don't quite understand my own particular position.

1. re. the my State Pension entitlement. My forecast as at today shows 40 qualifying years, basic entitlement 113.10pw plus additional 33.55pw. My state retirement date is end Jan 2017 (age 65).

So my first question is how much state pension I will get at age 65 in 2017.

You will get at least the equivalent of £146.65, calculated under the old rules as you give above based on your contributions to date.

This is marginally under the current pension MIG, which is roughly the same as the expected value of a full new state pension.

If you are still working and getting more S2P then you are likely to be a bit in excess of this.

ric777

Thanks for the quick responses.

xylophone; I have looked at the 'bepsoke' form and it looks the same as the valuation I can get online. They both include the caveat about 'getting less than stated if you were contracted out'; hence the question how to calculate it myself. Have I missed something here?

And I understand the new regs on private pensions but my question is specific to the tax free draw down element rather than a general understanding.

JezR; I would like to think you are right but what about the dreaded clause 'you could get less than shown in this statement especially if you were contracted out.....'?

thanks again

xylophone

See https://forums.moneysavingexpert.com/discussion/5075832

post 13

atush

With 40 qualifying years, you get the basic SP under the new system. Then add on your current S2P figure of 33.55 PW The tow together mean you will get at LEAST 146.55 but may get a bit more as the basic SP goes up between now and then.

You cannot get less than you have accumulated now under the old rules. They compare the new and old rules (the new rules will see a deduction for contracting out) and whichever is the higher you get.