SERPs opt out

Tax_Slave

My wife opted out of serps back in the late 80’s.

She will now receive her state pension at age of 67, she is aged 60 and no longer working or plans to work again.

On the UK Gov web page it says she will get the maximum state pension and she can’t increase it via extra payments.

However if I click a link that explains opting out of serps it says her pension might be reduced due to this, but you can make extra payments to make up for this shortfall.

I presume her pension being stated as at max amount (£241.30 a week) has not been reduced due to NI payments we have made post 2016?

Thanks

p00hsticks

you are correct

dunstonh

I presume her pension being stated as at max amount (£241.30 a week) has not been reduced due to NI payments we have made post 2016?

It also means that she is likely to be a winner under the new system.

horsewithnoname

I was opted out for many years, but as I will now have to work till age 67 I will get the full state pension at that age.
There was some sort of calculation done, which you could get a copy of from the DWP, don’t know if you still can, but if the app says she’ll get the full pension, that’s okay 😁

pinnks

Small point of detail but you were not opted out. You were paying into a pension scheme that was contracted out of the second state pension.

The calculation to which you refer was to transfer you onto the new rules o 6 April 2016 and takes full account of your pre-6 April 2016 NI history. If, as is common for those who were contracted out, your starting amount for the new rules was equal to the old rule maximum basic pension, you need to fill 9 NI year from 2016/17 onwards to achieve a full new state pension. As everyone now reaching pension age will have had that opportunity, the number of people not achieving a full new state pension will diminish rapidly.

Coveredinbees!!!!

I'm in a similar position, I was contracted out but when I checked my state pension forecast it show a forecast of £241.30 which I can't improve and I have more than enough years (44 years). I don't know when I started being contracted out but I think it was mid 90. Have I filled in enough years yet or will I have by the time I get state pension in 2033? If it's 9 years am I already there?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81985742#Comment_81985742

You need to read the whole of the forecast.

If you have accrued £241.30 and cannot improve it any more then you have reached your personal maximum.

The £241.30 will increase each year under the triple lock rules. So if you check again a year from now you might see ~£250.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/81985742#Comment_81985742

Your state pension forecast will answer those questions.