How do i check if my Grandad has a pension or not

chamb7914

My Grandad has asked (in an impossible to say no sort of way) me to see if i can find out if he has a pension with his old emploey. He worked there for about 8 years in Oxford from around 1981-1989. He seems to think he may have paid into an employee one , but the company is no longer there and he doenst keep in touch with anyone that might know. How do i find out if, where and how much for him.....He is 65 next feb and is really worried as to what and if hes got anything other than the state pension coming in.

PM me for me details if you can help
cheers
Graham:money:

EdInvestor

There is a pension tracing service here:

https://www.thepensionservice.gov.uk

Has he checked out how much state pension he will get?He can ring up and ask the same people above.Many people seem to be unaware there are 2 state pensions, which could mean they may get much more than they expect. If not, pension credit can be claimed, which will top up income to about 120 quid a week plus free council tax and housing benefit if appropriate.

hardpressed

Could you explain the 2 state pensions, please?

EdInvestor

No 1 is the basic state pension, currently 87 quid a week.

No 2 is the State second pensions (S2P) aka Additional pension, formerly SERPS. This pension is on top of the basic one and is earnings linked, so the better paid you were, the higher it is likely to be, assuming you have always worked and paid NI contributions since 1978 when SERPS was set up.The additional pension can easily double the basic state pension, as I said.

If your Grandad had a company pension it is possible he was "Contracted out" of SERPS/S2P for a period, in which case he would get the money as part of the company pension, not as part of the state pension.

Ask the pension people for a state pension forecast. They have said they are not doing forecasts at present as the computers are being upodated, but as Grandad is so close to retirement, they might help now.If not he'll just have to wait till later in the year.

dunstonh

The additional pension can easily double the basic state pension, as I said.

I think it is fair to say that very few see the maximum.

Looking forward from today (not applicable in this position but for others reading) the maximum if this year was your first year of income cannot get close to double the state pension.

With the second state pension benefits having been reduced three times in the past (the increase in state retirement ages will be a forth), its fair to say that you shouldnt bank on this option.

Back on to this thread, you shouldnt get your grandad's hopes up on some big figure as it is highly unlikely to be worth anywhere near double.

EdInvestor

The maximum is higher than double. It may be that only a minority get double, but I wouldn't be surprised if quite a lot of people retiring from now on get above the level for pension credit ( ie around 120 quid a week, a 38% increase on the basic.)

dunstonh

The maximum is higher than double.

The theoretical maximum for those with the right level of earnings in the right years and the right period of time could have been more than the state pension alone.

However, those reading these threads starting out now shouldnt work on double as it is not theoritically possible based on 2007/8 rates.

It isnt safe to guess at getting double either as statistically, the average person isnt going to get near double.

The worst thing that can happen here is the OP tells his grandad he could get double state pension and finds he only qualifies for an extra £5 a week.

margaretclare

DH gets double, or approximately - his SRP and SERPS amount to £691.72 per 4 weeks.

Margaret

EdInvestor

I know several people who get double, one who retired last month.This thread is about people retiring now like the OP's Grandad, not in 30 years time.

It's unlikely that IFAs would run across many people who get double, because most of their clients will probably have spent most of their lives contracted out into company or private pensions.

dunstonh

I know several people who get double, one who retired last month.

I know several that get none.

This thread is about people retiring now like the OP's Grandad, not in 30 years time.

And what do we know about his NI history? Nothing.

So rather than filling his head of figures of £9000 a year income possible, lets keep things realistic rather than speculative. It could end up being £4500 a year or £4.50 a year.

It's unlikely that IFAs would run across many people who get double, because most of their clients will probably have spent most of their lives contracted out into company or private pensions.

To get maximum benefits, you need a continuous earnings maximising qualifying contributions. More typical of the average IFA client than a low earner.

EdInvestor

dunstonh wrote: »

I know several that get none.

Well of course - because contracted out.

To get maximum benefits, you need a continuous earnings maximising qualifying contributions. More typical of the average IFA client than a low earner.

The typical person who gets double has had a consistent long term work record, has never been contracted out, and earns a medium (not low) salary, paying basic rate tax.

I'd have thought typical IFA clients are high rate taxpayers, contracted out (if they weren't contracted out, the IFA wouldn't be doing his job!) These people would only get basic state pensions.