Should/Could I opt out now and contribute to a private pension?

JethroUK

Just had my pensions contributions and I've completed 35 years

Is that enough to claim a full Gov pension?
Could I opt out now and contribute to a private pension?

Please - No self-righteous preachers

Many Thanks for your factual information and not your opinion (dont worry about the 'should i' bit)

tomtontom

You'll continue to pay NI until you reach state pension age. Remember NI covers far more than your pension.

zagfles

35 years doesn't necessarily mean you'll get a full state pension, if some of the years were contracted out. Have you had a state pension statement?

What do you mean "opt out"? You mean of paying NI? Most classes of NI eg class 1 on employment income are compulsory, just as tax is.

El_Torro

It is possible to contract out of the Additional state pension, but not the basic state pension. This would mean paying lower National Insurance (not none). Your employer needs to run a scheme that allows this, if it doesn't then you can't do it.

I'd like to know the current state of this, as there has been some talk in recent years of no longer allowing contracting out, even talk about eliminating the Additional state pension altogether (compensating by increasing the basic state pension).

zagfles

El_Torro wrote: »

It is possible to contract out of the Additional state pension, but not the basic state pension. This would mean paying lower National Insurance (not none). Your employer needs to run a scheme that allows this, if it doesn't then you can't do it.

I'd like to know the current state of this, as there has been some talk in recent years of no longer allowing contracting out, even talk about eliminating the Additional state pension altogether (compensating by increasing the basic state pension).

You can only contract out of the ASP if you're in a contracted out workplace DB pension. You can't contract out to a personal pensions any more (since 2012). And in April all contracting out will end, as there is no more ASP.

p00hsticks

El_Torro wrote: »

I'd like to know the current state of this, as there has been some talk in recent years of no longer allowing contracting out, even talk about eliminating the Additional state pension altogether (compensating by increasing the basic state pension).

This is the 'new State Pension' (nSP) which comes in next April as zagfles has said

xylophone

Assuming that you are aged around 50 now, you will become eligible for state pension in the new scheme.

Having 35 years NI contributions does not exempt you from paying NI while you are below state pension age.

https://www.gov.uk/new-state-pension/overview

Doesn't your employer provide a pension scheme?