DWP forecast says 34 years out of 35 is only pennies less per week than full state pension.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81871059#Comment_81871059

Can't remember if it was on this, or another board - but someone reckoned that they were winners under the new pension scheme because they had only needed 28 years.....

eastcorkram

https://forums.moneysavingexpert.com/discussion/comment/81871079#Comment_81871079

That wasn't me. I needed 31, and get £8 per week above the new state pension. I don't regard myself as either a winner or a loser. You clearly regard me as a loser. Maybe you could tell me what it actually is, that I've lost.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81871105#Comment_81871105

Everyone is different, but if your foundation amount as at April 2016 was more than the new single tier pension, then you must have had some SERPS/SP2 accruals. These additional State pensions ended in 2016 - but if the scheme hadn't changed, you may have gone on to accrue more SP2 until retirement.

Under the old scheme, high earners who accrued SERPS/SP2 instead of being contracted out could have gone on to rack up as much as £400 per week State pension. Under the new scheme, the State pension is capped at the (current) £230 per week, plus any protected payments, if applicable (ie, your £8). All for the same rate of NI.

It really depends on how long you have between 2016 and retirement.

michaels

https://forums.moneysavingexpert.com/discussion/comment/81871340#Comment_81871340

As mentioned above, once you reach the limit, any more years you work you no longer gain the equivalent of 10k towards an annuity so effectively each year you work post 35 you are 10k net worse off than you would be if you were still working towards 35. This effective 20% pay cut at 48 was part of the reason I brought my retirement forward as much as possible, the trade off between more work or more leisure obviously looks different if the work pays less.

Intoodeep

You get what you get in your Bank no point in buts, if etc., it's a bit like cricketer contesting his dismissal, look in the scorebook.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81871472#Comment_81871472

Curious comment, especially for the many of us who took proactive action to improve our state pension outcomes by way of voluntary contributions.

We certainly did not sit passively awaiting DWP's 'dismissal'.

In my case with a 43 year contribution history was facing a £35 per week shortfall from maximum due to an early personal decision to contract out of SERPs.

For the princely sum of £486 ( self employed contribution rate) entirely recouped the shortfall. I certainly was not content to sit back and 'get what I get', which frankly is partly what this forum is all about.

michaels

https://forums.moneysavingexpert.com/discussion/comment/81871571#Comment_81871571

An annuity costing 40k for less than 500 notes, and you get to keep your opted out DC pot. No brainer for you, no brain from the govt.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/81871079#Comment_81871079

I consider myself a winner. I need 44 years, but I didn't qualify for SERPS/S2P under much of the old system (periods of contracted out with DB pensions and self-employed). I was heading for the BSP until the changeover to NSP.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81871933#Comment_81871933

I have the maximum possible amount of contracted out service - 38 years, 1978 to 2016. Then enough time between 2016/retirement and SPA to be able to top myself up to the full nSP.

I have a friend in a very similar situation to me, and I tried to make her see what a good deal buying Class 3s would be - but to no avail. She just kept justifying her decision by saying that "£3K for just £20 per week extra pension wasn't worth it" and "I've given enough money to the Government while I was working, and I'm still paying tax from my (occupational) pension, and I'm not going to give them a penny more than I have to".

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81871977#Comment_81871977

You can lead a horse…… 🙄