state pension amounts

RickyB2000

excelpaul wrote: »

Yes but by being contracted out you paid less national insurance and probably have a defined benefit pension (like myself). Swings and roundabouts.
Further to comments regarding my earlier post, I too am surprised about the £167 figure as I was contracted out most of the time. To be honest I was expecting less than £150. Well we shall see what happens as 2024 approaches. To be honest whatever I get will be a helpful bonus to my DB pension.


Happy New Year to you all!!!

A DB pension which probably has very generous provision and is probably more certain about what you will get going forward than the state pension will ever be. I think it is probably a good a deal to lose a bit of state pension for that. Plus the fact if you still have years to SPA and can keep working you can get your SP topped up to the full amount as well.

saver861

excelpaul wrote: »

Further to comments regarding my earlier post, I too am surprised about the £167 figure as I was contracted out most of the time. To be honest I was expecting less than £150.

Happy New Year to you all!!!

I'm a bit surprised that you have a figure of £167 if you were contracted out most of the time. Certainly that does not seem consistent with the general case.

People who were contracted out for most of the time are likely to have a higher starting amount from the old system and thus be around the £115 mark.

Definitely I would get those figures checked out.

jem16

excelpaul wrote: »

I too am surprised about the £167 figure as I was contracted out most of the time. To be honest I was expecting less than £150.

Having read one of your previous posts about being in the TPS for all of your working life, I would seriously question that amount.

Like you I have been contracted out into the Teachers' pension scheme for all of my working life. I have 41 years NI and my forecast says £119.83.

I would expect this to be about the same for you too.

However this answer is a bit puzzling;

excelpaul wrote: »

I can confirm that several of my NI years were not contracted out.

saver861

Stubod wrote: »

..just received my state pension quote. £140 per week for 41 years NI contributions, (Most "contracted out")...so much for £155 per week minimum ....

well as previous posts, if you were most contracted out £140 is a high amount. Normally most contracted out years means a starting amount of around the current basic state pension of £115.

The expectation you would get £155 has confused many but you are still doing very well with £140 if mostly contracted out.

Must admit, these figures for those that are mostly contracted out are varying somewhat. Because I was mostly contracted out, my starting amount is the current £115.

hmmm....

bigfreddiel

excelpaul wrote: »

Yes but by being contracted out you paid less national insurance and probably have a defined benefit pension (like myself). Swings and roundabouts.
Further to comments regarding my earlier post, I too am surprised about the £167 figure as I was contracted out most of the time. To be honest I was expecting less than £150. Well we shall see what happens as 2024 approaches. To be honest whatever I get will be a helpful bonus to my DB pension.


Happy New Year to you all!!!

This is absolutely correct, contracted out means you paid lower rate NI, so you shouldn't expect the full single tier pension, often called the new state pension or flat rate pension. It's akin to expecting to pay for one pint of milk and expecting to be given an extra quarter pint for nothing. It's not going to happen and unfair to those who pay for that extra quarter pint.

Cheers fj

bigfreddiel

I have 42 yrs NI contributions. Contracted out for the last 15 years.

I asked for my pension forecast and it is £151/week, due to start on 18 July 16.

I'm happy with that!

fj

Thrugelmir

As at 5th April 2015 my pension forecast was a £149.16p a week.

Been contracted in and contracted out (again currently). Contributions also made under SERPS and S2P. Already have the required 35 years contributions so after the end of this tax year guess I will be capped. Hopefully above the new minimum level.

System

Jem16
4 of my NI years were contracted out.

System

Jem16
Sorry I meant to say 4 years were not contracted out. A little bit of my working life was outside the TPS. Apologies for confusion.

xylophone

Sorry I meant to say 4 years were not contracted out. A little bit of my working life was outside the TPS. Apologies for confusion.

You say in an earlier post that you will be 60 in 2018 at which time you will have been a member of TPS for 37 years.

https://forums.moneysavingexpert.com/discussion/comment/66845211#Comment_66845211 post 43

If you were born in 1958, the earliest you would have qualified is around 1979/1980.

You say that you were contracted in for four years.

It is difficult to see how four years contracted in would give you a state pension estimate of £167.

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