Is husband's pension correct?

zaksmum

My husband recently retired from work on ill health grounds and gets an occupational pension. Shortly afterwards, his State Pension became payable on top of the occupational pension.

He has worked full time, never missing a day, since leaving school at 15 and is now 66.

He gets £133 a week SP, but everyone of his age that he speaks to seems to get around £155 a week, so considerably more.

Might there be a reduction in SP due to his OP, or has a mistake possibly been made?

He can't understand why he is getting around £20 a week less than others - there is no second job or other income.

Please can anyone advise?

Thanks

mgdavid

One possible reason would be that he spent some years with an employer with their own pension scheme so he would have been contracted out and paid lower NI rates for that period. The upside would be that he has a pension waiting to be claimed from that company...

Has he checked his NI contributions record?
https://www.gov.uk/check-national-insurance-record

xylophone

Your husband is in receipt of a defined benefit occupational pension which was contracted out?

Your husband reached state pension age on or after 6.4.16?

Your husband will have received a letter from DWP showing the make up of his state pension - what does it show?

GunJack

zaksmum wrote: »

My husband recently retired from work on ill health grounds and gets an occupational pension.

this will be the factor - he's been in a contracted-out occupational scheme, which he gets AS WELL AS his state pension....many of those others you refer to probably aren't getting as good an OP as he is, indeed if they even have an OP themselves...

k6chris

On this topic, does the personal SP quote you get from https://www.gov.uk/check-state-pension include all of these reductions? i.e. does it give you the actual SP you will get? Dumb question I know but want to double check.

GunJack

all what reductions?? If you mean it's your current estimate, then yes, if you had NI years before april 2016 then there's no reductions from the figure quoted

zaksmum

Yes he paid into the OP with his employer, does that mean he was contracted out? He reached State Pension age - that is, turned 65 - before 6.4.16.

zagfles

zaksmum wrote: »

Yes he paid into the OP with his employer, does that mean he was contracted out? He reached State Pension age - that is, turned 65 - before 6.4.16.

Some employer pensions are contracted out, some aren't. You'll need to read the scheme booklet, or ask the company pensions dept. Or the govt personal tax account should tell you if you register: https://www.gov.uk/personal-tax-account

mgdavid

Does he need the state pension money now? If not have you considered deferring, which gives an increase of 10.4% for every year deferred. About 20 months will get him close to £155, longer = more

xylophone

that is, turned 65 - before 6.4.16.

Then he is receiving his state pension under the old rules.

Your husband should be in possession of a letter showing exactly how his state pension is made up.

What does it say?

xylophone

Your husband should be in possession of a letter showing exactly how his state pension is made up.

See post 18

https://forums.moneysavingexpert.com/discussion/comment/60319901#Comment_60319901

Is a COD shown?