Contracted out of state pension

surreysaver

The HMRC website doesn't really tell you how to work this out.
If I had paid into an occupational pension scheme (which I am still paying into), and was contracted out for 25 years, how many years do I have to pay full National Insurance contributions for to balance out the contracting out to receive a full state pension?

Marcon

surreysaver said:

The HMRC website doesn't really tell you how to work this out.
If I had paid into an occupational pension scheme (which I am still paying into), and was contracted out for 25 years, how many years do I have to pay full National Insurance contributions for to balance out the contracting out to receive a full state pension?

What does your current forecast say?

molerat

surreysaver said:

The HMRC website doesn't really tell you how to work this out.
If I had paid into an occupational pension scheme (which I am still paying into), and was contracted out for 25 years, how many years do I have to pay full National Insurance contributions for to balance out the contracting out to receive a full state pension?

It is not as simple as that, it all depends on your individual circumstances.  Your pension forecast will tell you how many more, if any, years you need to reach the full amount.

surreysaver

molerat said:

surreysaver said:

The HMRC website doesn't really tell you how to work this out.
If I had paid into an occupational pension scheme (which I am still paying into), and was contracted out for 25 years, how many years do I have to pay full National Insurance contributions for to balance out the contracting out to receive a full state pension?

It is not as simple as that, it all depends on your individual circumstances.  Your pension forecast will tell you how many more, if any, years you need to reach the full amount.

Two years including this year). It would be useful if there was some explanation of how it worked. I cannot find any explanation anywhere 

molerat

surreysaver said:

molerat said:

surreysaver said:

The HMRC website doesn't really tell you how to work this out.
If I had paid into an occupational pension scheme (which I am still paying into), and was contracted out for 25 years, how many years do I have to pay full National Insurance contributions for to balance out the contracting out to receive a full state pension?

It is not as simple as that, it all depends on your individual circumstances.  Your pension forecast will tell you how many more, if any, years you need to reach the full amount.

Two years including this year). It would be useful if there was some explanation of how it worked. I cannot find any explanation anywhere 

There are many explanations all over the web, many on here ........ but

In April 2016 you were given the higher of old rules x(max30)/30ths of £119.30 + S2P (which already had a contracted out deduction made in any figures you would have been given) or x(max35)/35ths of £155.65 - COPE.  From then on you were able to top up to the full new pension amount with post 2016 contributions. You were not contracted out of the state pension but the second state pension, your basic state pension was still accruing whilst contracted out.  To not have reached the full entitlement by April 2025 you must have either gaps post 2016 or under 30 pre 2016 years.

xylophone

Two years including this year). It would be useful if there was some explanation of how it worked. I cannot find any explanation anywhere 

Does this help?

https://forums.moneysavingexpert.com/discussion/comment/81045294#Comment_81045294

surreysaver

molerat said:

surreysaver said:

molerat said:

surreysaver said:

The HMRC website doesn't really tell you how to work this out.
If I had paid into an occupational pension scheme (which I am still paying into), and was contracted out for 25 years, how many years do I have to pay full National Insurance contributions for to balance out the contracting out to receive a full state pension?

It is not as simple as that, it all depends on your individual circumstances.  Your pension forecast will tell you how many more, if any, years you need to reach the full amount.

Two years including this year). It would be useful if there was some explanation of how it worked. I cannot find any explanation anywhere 

There are many explanations all over the web, many on here ........ but

In April 2016 you were given the higher of old rules x(max30)/30ths of £119.30 + S2P (which already had a contracted out deduction made in any figures you would have been given) or x(max35)/35ths of £155.65 - COPE.  From then on you were able to top up to the full new pension amount with post 2016 contributions. You were not contracted out of the state pension but the second state pension, your basic state pension was still accruing whilst contracted out.  To not have reached the full entitlement by April 2025 you must have either gaps post 2016 or under 30 pre 2016 years.

Thank you. I don't know why HMRC cannot just sqy that. They have a couple of worked examples, but they don't make any sense, as they're not explaining why variables within those examples cause the result.
But, what you're basically saying, is I will have full entitlement by April 2025, which concurs with my forecast.

surreysaver

xylophone said:

Two years including this year). It would be useful if there was some explanation of how it worked. I cannot find any explanation anywhere 

Does this help?

https://forums.moneysavingexpert.com/discussion/comment/81045294#Comment_81045294

Yes, thank you