National Ins Contributions

terrryp

I'm hoping someone can give me a definitive answer to this.

By the time I reach state retirement age in a few years I will have been paying NI for 50 years (16 to 66). For 13 of those 50 years I was contacted out to a final salary pension scheme. So I have paid full contributions for 37 years.

My question is do I qualify for a full state pension or will the 13 years still be deducted from the 35 needed?

greenglide

The contracted out years are never deducted from the total years like that.

The "value" of the contracted years is deducted from the total pension when calculated according to the "new rules" at 6/4/2016.

A calculation according to the old rules is also done at 6/4/2016. The higher of the two is the starting amount for the new scheme.

Since you have many years of not contracting out you may well have sufficient Additional Pension (SERPS, S2P and even a bit of GRAD) to take your old rules amount above the maximum new rules amount.

Have you had a pensions forecast before? If it was above £150 or so you will start with that.

You need a current forecast from DWP.

xylophone

You are over 55?

http://www.thisismoney.co.uk/money/pensions/article-2942928/Over-55s-apply-new-state-pension-forecasts-DWP.html

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

terrryp

Thanks Greenglide and xylophone.
It seems a bit (lot) more complicated than I initially thought. I'm 58 at the moment so I think I'll leave it a couple more years and then get a forecast.

Many thanks again