Advice please re contracted out period

purplelavender

I am 59 and will get my pension at 66. I have just had a pension statement and have a period when I was contracted out, late 1970s until I had my first child in 1984. I am certain that I had a refund. Of course I was not aware then what impact it would have on my state pension and now have a reduced pension as a result. I am paying Class 2 NI as I'm selfemployed. The statement says I have 42 qualifying years. So my question is should I pay additional contributions to make up the shortfall or would just paying Class 2 until I retire be enough? Statement states 132.84 under new rules and 129.55 under old rules. I am divorced. Where can I go for advice?

xylophone

See https://www.gov.uk/new-state-pension/how-its-calculated

purplelavender

Thanks, so at least I will have time to make it up by continuing to pay NI.
I do have a couple of other questions but not sure if I should start a new Am I right that my pension is not based in anyway on my ex husband's NI record, I have not paid the married woman reduced rate in the past.

I would like a little advice on possibly combining 2 small private pensions.

McKneff

You have more qualifying years than you need anyway even now. But the law says you still have to keep paying them.....


Everyone gets their own pension in their own right now.


No such thing as married couples allowance (unless your in your eighties or something like that)
If you have over 35 years NI credits you will both get independent pensions.

p00hsticks

McKneff wrote: »

You have more qualifying years than you need anyway even now. But the law says you still have to keep paying them.....

I may be wrong, but my understanding is that after the new state pension rules come in in April next year, as the OP's forecast 'foundation' amount of £132.84 is under the proposed flat rate of around £150, each additional years NI paid after April 2016 would result in an increase of around £4 in pension until the maximum flat rate.

jamesd

What can you tell us about the two pensions that you want to combine?

greenglide

I am certain that I had a refund.

Is this refund a refund of contributions to the contracted out scheme you were a member of? If it was then there is nothing you have said that indicates why you shouldnt get the full new rules amount.

Do you have a deferred pension from this scheme that you havent mentioned?

If you had a refund of contributions you must have been bought back into the state scheme. If you didnt have a refund the pension should be "somewhere".

xylophone

I have the very vaguest memory of married women being offered some kind of refund of contributions in eg Civil Service Schemes?

I wonder if this is what happened to the OP?

She would have claimed CB for her children and presumably received HRP - she can check this https://www.gov.uk/national-insurance-credits/eligibility

She is working now and expects to increase her entitlement to NSP.

She is entitled to a new state pension in her own right - I don't know whether she would be entitled to any of the ex spouse's SERPS up to the date of divorce in the event of his death- the case doesn't seem to be covered here?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf

With regard to the two small pensions, it is not stated whether these are deferred DB Schemes or money purchase etc.

Perhaps she will come back with more information.

drumtochty

You reach state retirement age in in 2022.

The new state pension starts April 2016.

At todays rate you are about £16 under the maximium of the new flat rate state pension.

If you pay Class 2 contributions from April 2016 to April 2020 you will at todays rate increase your flat rate state pension by approx £16.80.

At that time you will have reached the maximium of the flat rate pension whatever it has increased to by then.

There is no advantage to paying Class 2 contributions with regard to second state pension either this year or from April 2015 to April 2016.

purplelavender

Hi, sorry have been working which is why I have not replied sooner.
Ok lots to take in here....
Regarding the period I was contracted out, it was a long time ago! I have filled in one of those trace missing pension on line. I don't know what was refunded but I suppose I could contact Hampshire County Council. All I have to go on is the statement I have just received which says a deduction is made as I was contracted out for sometime. I got a statement back in 2004 when I was going through my divorce which I made a note on the period I was contracted out.
I did get the HRP.
No pension sharing order was made at the time of my divorce. I have no idea if any of my pension includes my ex's SERPS. How do I find out? Hope not as would like to remarry before I'm 66!
I now understand about the further contributions I will be making which will help.
OK now the two SMALL pensions, one was from employment which ceased in 2007. Money with Blackrock and only 5K.
Since divorce have a Stakeholder with Aegon which I am still paying into and only worth 9K currently. Both companies suggested I amalgamate them to save on charges. Aegon is encouraging me to look at Retiready.
So as you can see every little penny helps. Thanks

purplelavender

drumtochty wrote: »

You reach state retirement age in in 2022.


There is no advantage to paying Class 2 contributions with regard to second state pension either this year or from April 2015 to April 2016.

So should I stop paying then and restart? Bit confused about this.....