When R U Officially Classed as Retired?

Triumph13

OldMusicGuy wrote: »

I am "economically inactive" as far as the employment stats are concerned.

I quite like the sound of that:
"What do you do for a living?"
"I'm economically inactive."
Definitely has possibilities.

Audaxer

OldMusicGuy wrote: »

Don't worry, been checking it for years. I'm forecast to get over 10.5K per annum as of today because I contracted back in after a period of contracting out. Any additional NI contributions will not increase what I will get.

That is a surprise to me as I thought the most anyone could get was £159.55 per week (£8,296 per annum) unless they deferred taking it at State Pension age.

NorthernGeezer_2

My pension statement quotes £179/week even though I contracted out for a few years.
Presumably its all about your qualifying years.

OldMusicGuy

Audaxer wrote: »

That is a surprise to me as I thought the most anyone could get was £159.55 per week (£8,296 per annum) unless they deferred taking it at State Pension age.

No, that's after 2016. So if you had contributed to SERPS/S2P prior to 2016 and that meant your pension would be more than the new flat rate, that's what you got. It's a gradual transition, so people like me that contributed most of their NI before 2016 and did not contract out will get the entitlement they built up prior to 2016. Although remember I was both contracted out and contracted in over the last 40 years so there is an element of offset.

That does mean that people like my wife that did contract out have the opportunity to get up to the flat rate if they can contribute additional years (I think they have to be post 2016). My wife reaches SP age in 5 years time (at 66) so can make voluntary contributions to make her pension up to the new flat rate.

bostonerimus

hyubh wrote: »

No, a significant proportion of previously contracted-out people have too, also the self-employed paying class 2 NICs, and (typically female) carers.

Under the old scheme people living in the UK and only entitled to the basic state pension could get pension credit to significantly increase their weekly cheque. However, expats could not get pension credit and so the new flat rate pension is a 22% increase for them......that will also be true for people who could not get top ups to the basic SP under the old scheme. A big improvement in the new system is opening up the range of activities that count for NI credits.

bostonerimus

NorthernGeezer wrote: »

My pension statement quotes £179/week even though I contracted out for a few years.
Presumably its all about your qualifying years.

I imagine you are one of the folks in transition and there's still an element of "second SP" in that number. My SP date is 2028 and right now I'm entirely in the flat rate pool.