State Pensions

msg2004

Hello
A few questions please and all help appreciated.


My sister's state panesion age reaced several months ago 62. something - came to england in 1979, worked since and still is working always earned more than 14k - signed on for a year in 1990 and in work again and working still. She ws awared the basic state pension of about 114 and topped up because of her earning to 180-ish

My brother came to England,in 1967, worked since then, never been unemployed, retired three years ago at 62 but did not claim any benefits as he is cash and asset rich. He is 65 in October and told by pensins his amonut is 122 quid. During the lat 30 yrs or so his income has been over 25k and lat ten yrs or so well over 40k - he has almost 45 yrs of full pensions contributions and always been paid well above the avg for the year, so why is pension lower?

Finally, I'm 55+ worked since leaving college just before age of 18 - lived in bradford diff to get a job long time ago, claimed unemployement for just under 18 months - moved to london 1976, worked since no benefits large cash savings and assets - if i was to leave work at 56/57 - i would have paid more than 35 yrs on full NI contributions and will not claim any benefits as i have large cash amounts and other income of about 4k a month before tax - what would my pension be?

What really confuses is my brothers pesnion is less than our sisters and brother has earnt a lot more, never out of work, has kids - so why only 122 for him

All help appreacited.

jem16

msg2004 wrote: »

He is 65 in October and told by pensins his amonut is 122 quid. During the lat 30 yrs or so his income has been over 25k and lat ten yrs or so well over 40k - he has almost 45 yrs of full pensions contributions and always been paid well above the avg for the year, so why is pension lower?

Has he been contracted out at any time? If he paid into an occupational pension scheme it may have been contracted out so wouldn't have as much state 2nd pension.

i would have paid more than 35 yrs on full NI contributions and will not claim any benefits as i have large cash amounts and other income of about 4k a month before tax - what would my pension be?

Again impossible to say. Were you contracted out at any time? Best answer is to get yourself a state pension statement.

xylophone

Has your brother an occupational/private pension? Was he "contracted out"?
http://www.which.co.uk/money/retirement/guides/contracting-out-of-state-second-pension-s2p/what-contracting-out-means/

You will receive your state pension under the new arrangements - see here
https://www.gov.uk/new-state-pension/overview

Apply for a statement here https://www.gov.uk/state-pension-statement

p00hsticks

Your state pension isn't determined by your earnings as such, just how many years you have been making NI contributions for, and whether you've been contracted in or out of the state second pension etc.

It sounds like your sister was contracted in but your brother was not - if so, she will have paid a higher % of her earnings as NI than he did, so get;s a higher pension. He will have been contributing to a private pension instead.

msg2004

Hello

Thank you all
Yes, my brother was in a company pension scheme but i dont htink he was 'contracted out.' but my sister does not have a compnay or private pension

I have a company pension but pay full ni as far as i am aware

thanks again

msg2004

Btw, does joining a company pension schem mean auotmatically contracting out? He was with a private company loke my sister ans I'm a local gov surveyor

jem16

msg2004 wrote: »

HelloYes, my brother was in a company pension scheme but i dont htink he was 'contracted out.'

More than likely he was if he's only receiving £122pw. If his company pension scheme was defined Benefit, ie final salary, then he would have been contracted out simply by joining the scheme.

I have a company pension but pay full ni as far as i am aware

You would need to check.

msg2004 wrote: »

Btw, does joining a company pension schem mean auotmatically contracting out?

Not always but quite often. It depends on the scheme.

He was with a private company loke my sister ans I'm a local gov surveyor

If you're in the LGPS ( Local Government Pension Scheme ) then you are contracted out.

xylophone

then you are contracted out.

But this comes to an end with the inception of the new state pension scheme 6 4 16.

msg2004

thank you all, very help and quickly too!