2016 pension changes confusion

alfonso

Hope someone here can put me at ease regarding the new rules.
I was fortunate enough to retire at 50 in 2010 with a final salary pension.
I still pay 10% tax on this but zero NI.
I paid NI from 1976 to 2010 inclusive.
My state pension will not kick in until 2026. Now if I read the new rules correctly I will now not have enough NI contributions to qualify for a full pension and may need to buy extra years.
I can not claim any benefits etc including JSA.
Am I correct ?
Thanks in advance

saver861

alfonso wrote: »

Hope someone here can put me at ease regarding the new rules.
I was fortunate enough to retire at 50 in 2010 with a final salary pension.
I still pay 10% tax on this but zero NI.
I paid NI from 1976 to 2010 inclusive.
My state pension will not kick in until 2026. Now if I read the new rules correctly I will now not have enough NI contributions to qualify for a full pension and may need to buy extra years.
I can not claim any benefits etc including JSA.
Am I correct ?
Thanks in advance

Well the first thing to do would be to get a pension statement with your estimates. This will tell you if you have any contracted out years etc. and will tell you your 'starting amount'. If you have 35 years then this is likely to be the equivalent of the current basic pension at least, which will be £119 in April. If you were not contracted out then it could be more.

However, as you several years until your spa, you can buy additional years to make up the difference between your £119 and the maximum £155. You would need around eight years post 2016 to make up the balance to £155.

However, it depends on your circumstances and what your pension statement tells you.

zagfles

alfonso wrote: »

Hope someone here can put me at ease regarding the new rules.
I was fortunate enough to retire at 50 in 2010 with a final salary pension.
I still pay 10% tax on this but zero NI.
I paid NI from 1976 to 2010 inclusive.
My state pension will not kick in until 2026. Now if I read the new rules correctly I will now not have enough NI contributions to qualify for a full pension and may need to buy extra years.
I can not claim any benefits etc including JSA.
Am I correct ?
Thanks in advance

There is no 10% rate of tax anymore.

Your state pension should be at least the current basic state pension, about £116, if your final salary scheme was contracted out then that might be it, but you may be able to buy more credits to boost it up to the full flat rate of around £155 for the years after April 2016.

xylophone

Get a state pension statement which will show you your starting amount.
https://www.gov.uk/state-pension-statement

It is very likely that you were contracted out - see https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

neilvw

While waiting for the postal statement you might want to try the Government's new online service (in beta):

https://www.tax.service.gov.uk/checkmystatepension

You will need ID handy. I found the Post Office verification easy but others had problems.

Yorkie1

neilvw wrote: »

While waiting for the postal statement you might want to try the Government's new online service (in beta):

https://www.tax.service.gov.uk/checkmystatepension

You will need ID handy. I found the Post Office verification easy but others had problems.

Thanks for that link.

I used the Experian verification and it was OK although it did ask for several layers of evidence (d/lic, credit card, debit card, confirmation of 3 different banks with which I held a current account).