Retiring early and reduction of state pension

away-with-the-fairies

It's something I didn't realise until I spoke to a friend today who retired early. Despite having paid no for over 40 years her state pension will be reduced unless she pays her ni up to her forecasted retirement date.

Is there any way to find out what your state pension would be if you retireed early. I know my work pension will be reduced and I know by how much but I never gave state pension a thought

stoozie1

https://www.gov.uk/check-state-pension

try this to start

Dazed_and_confused

Has your friend explained how her state pension will be "reduced".

Or does she actually mean as she won't be contributing for as many years she won't build up as much of entitlement?

Which is a totally different thing to it being "reduced".

xylophone

It's something I didn't realise until I spoke to a friend today who retired early. Despite having paid no for over 40 years her state pension will be reduced unless she pays her ni up to her forecasted retirement date.

Is there any way to find out what your state pension would be if you retireed early. I know my work pension will be reduced and I know by how much but I never gave state pension a thought

https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

away-with-the-fairies

My friend said that as she retired 18 months early her state pension will be reduced by an amount-I don't know what- despite her having 42 years of qualifying in contributions. I just checked mine and I currently have 40 full years of ni but I don't know how many full years you have to get to get a state pension that will not be reduced

msallen

I think your user name applies to your friend. SP is NOT reduced for retiring early, but if you haven't built up the maximum, then it can still be increased further by paying NI for longer. Start with the links provided above.

zagfles

40 years will get you a full new state pension or more, unless you've been contracted out. It's not retiring early that's the issue. Although if you have been contracted out, you might still be able to increase your state pension to the max by NI conts for a few more years. That's having your cake and eating it.

hyubh

away-with-the-fairies wrote: »

My friend said that as she retired 18 months early her state pension will be reduced by an amount-I don't know what- despite her having 42 years of qualifying in contributions.

Was she contracted out for a long period? (E.g., does she have a sizeable final salary pension coming up?) If so, the 'reduction' will be merely from not maximising the boost transitional arrangements for the new state pension allow for in such a scenario.

xylophone

Have you read the link in post 4?