State pension blooper

McKneff

schojac wrote: »

I accept that I have totally misunderstood and when I took out the company pension was unaware of the consequences - it was 35 years ago and I was much younger.

I'm just disappointed in my own ignorance and now at this late stage will be unable to do much about it. However, my saving grace is that the pension pot and the possible annuity from it will pay a little more than I would have got from state pension.

My concern is how many other people, who like me do not fully understand the pension system, and have many more years contracted out, will fall into the same misguided thinking.

Many thanks for all the enlightenment; feeling rather sheepish.

It sounds, from the Bold above that you think that you are only going to get your annuity and not your state pension.


To clarify, you will get your private pension AND your state pension including any serps/sp2.

seven-day-weekend

I get a full State Pension of £124 . I also get a Pension from the Local Government Pension Scheme which is what I opted out into. The two together pay more than I would have got from State Pension alone, even if I was under the new scheme, and even though I only paid into the LGPS for ten years.

I knew about married women's stamp and that is why I never paid it. I thought it a no-brainer when I could build up 100% of my own pension rather than rely on 60% from my husband's. I understand that some women were not told the full story, but many did know and chose to pay MWS anyway. They are now getting what they opted for.

xylophone

I accept that I have totally misunderstood and when I took out the company pension was unaware of the consequences - it was 35 years ago and I was much younger.

What do you think you have lost by joining the company pension scheme?

teddysmum

McKneff wrote: »

I probably don't but Im seeing it more and more.


Mine was pretty simple to be honest, I only paid 20 years of full stamp so was only entitled to 50% SP so got my state pension on my OHs NI.
I did understand about the Serps and the contracted out points.


I was one of the ones trapped into the Married Womens Stamp era.
it was certainly never explained what the implication were and that it affected the amount of state pension. When you are 17, married and you get asked do you want to pay £1 or £3, seemed like a no brainer at the time.

I think many of us were naïve when younger.


I knew that the married woman's stamp would mean less state pension, so it wasn't worth the saving on contributions, becoming a supply teacher , after having my children, I, ill-advised by a colleague, opted out of paying superannuation , because I 'may as well enjoy the income , now' .


It wasn't until I reached retirement age, that I realised how much teacher's pension I had lost; luckily the loss being only for a small number of years.

atush

schojac wrote: »

I accept that I have totally misunderstood and when I took out the company pension was unaware of the consequences - it was 35 years ago and I was much younger.

I'm just disappointed in my own ignorance and now at this late stage will be unable to do much about it. However, my saving grace is that the pension pot and the possible annuity from it will pay a little more than I would have got from state pension.

My concern is how many other people, who like me do not fully understand the pension system, and have many more years contracted out, will fall into the same misguided thinking.

Many thanks for all the enlightenment; feeling rather sheepish.

Nope, you are STILL not getting it.

The basic SP as it stands today is just under 116. You will get thisl On top of this, you will get s2p serps from ALL the years you were contracted in. This should be listed on your pension statement if you got one. You get this On TOP of the basic sp.

Then you will get the HIGHER of the 2 figures, new SP and old/current SP. For you likely to be old ie 116+ s2p/serps. THEN for each year you work in the new system (ie after april 2016) you will get (roughly) 4 quid per week on top- until your total is as high as the new SP (perhaps around 150 but we wont know until later this year)

xylophone

I get a full State Pension of £124

You get more than the BSP which is currently £115.95.

The difference is probably made up of some Graduated Pension and some S2P.

S2P gives all employees earning up to a certain amount a larger pension than SERPS, regardless of whether they are "contracted out"

PennyForThem_2

I was aware of the married woman's pension and quickly got out of it - a con if ever there was one when the social culture was changing in 70's and 80's to women working full time.


This would be a 'mis-sold product' if all was fair.


I am one of the lucky ones in that my husband paid serps etc for quite a few years and due to the government messing up, this was deemed as 'inheritable' and I have a letter dated 2002 to prove it. So I get 70% of his Serps (calculated on his dob). He is dead btw.


Have deferred so from a recent statement it would appear I get 17K from my state pension -lol - when I claim. More than my NHS pension.

vvvvvvvvvvvvvvvv

Can i just ask

When will the serps for 2114/15 tax year be added onto the state pension statements?

mumps

Actually I can see the OPs point of view. If I understand correctly she has paid 46 years contributions and only 7 of them were contracted out. Someone who has paid full NI for fewer years wouldn't be penalised, she paid NI without being contracted out for 39 years which is more than you need for a full state pension. I think it is quite easy to see why she didn't understand.

I don't understand what the married women's stamp has to do with it?

greenglide

When will the serps for 2114/15 tax year be added onto the state pension statements?

If you actually mean "when will the contributions data from 2114 / 2115 be added ......" the answer is "in the next few months".

It relies on HMRC processing the end of year data from employers. The employer has until the end of May to do this.