Early Retirement

Silverbird65

Bubs is due to retire next July 2023 however he has health issues so feels he would like to go this July 2022. His was contracted out like many in the 1980s but has small GMP to cover this. Will he have a ccrued more than basic new state pension £185.15 ? His forecast is £192. For retirement age
Thanks

Dazed_and_C0nfused

If his forecast is £192 then that means he had accrued more than the standard £185.15 when his new State Pension starting amount was calculated back in 2016.

The £192 will increase with the annual double/triple lock increases.

Silverbird65

Thanks. So will he miss out on accruing more if he retired a year earlier?

Dazed_and_C0nfused

Not State Pension no, he cannot accrue more than the £192 he already has.

Silverbird65

By the way got that wrong just looked at forecast £185  so just the norm although I thought there was a serps thing until 2002. I expect that must be in there as he has a COPE deduction. I just trust they got it right. I get less than basic cause of COPE ammt deduction. I really just don't understand it all👍

bluenose1

I know for me it states the maximum state pension I can get is £185 as I was contracted out. Have you checked that his state pension forecast says he does not need to contribute anymore years to get this amount?. If you log on to his account it tells you.
For his last year of work you may want to consider putting the maximum you can afford into his works pension/ SIPP  as even if you pay tax you will get 6.25% return, more if his work offers salary sacrifice. I am living off my savings to contribute as much as possible.

Silverbird65

We haven't got works pension. He has full qualifying years   over 42 and he will get small GMP from contracted out time. He is due to retire July 2023 so the forecast is £185. Is that on today's figures?👍

QrizB

Silverbird65 said:

We haven't got works pension. He has full qualifying years   over 42 and he will get small GMP from contracted out time. He is due to retire July 2023 so the forecast is £185. Is that on today's figures?👍

Look further down the page at https://www.gov.uk/check-state-pension (further than the big £185) and see what it says underneath it. Are there two bars, one for the pension earned to date and one for the pension he could have if he contributes for extra years?

Something like this:

Silverbird65

Thanks I will have a look. Although I don't think so. It just gave the figure then total for month and year. He is fully paid years National insurance.thanks again 

Silverbird65

I have checked he has 45 qualifying years and cannot get anymore than £185.
Thanks