State pension query

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Gers
Gers Posts: 12,054 Forumite
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in Pensions, annuities & retirement planning
Hi again

Next July I (at last) become eligible to claim my SP. I've been taking my LG pension since February 2014. I've looked at the pension forecast site online.

Will my SP be reduced becuase of my being contracted out for all of my full time working life? I can't see any indication of this online.

Thanks

Comments

  • GunJack
    GunJack Posts: 11,676 Forumite
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    What exactly does your online check say?

    something along the lines of:-

    ESTIMATE £xxx.xx per week

    based on contributions up to 5 Apr 2018

    there are also links on that page to your NI record, so you can see gaps. Have you paid NI for the last few years? If not, you may be able to increase SP by paying voluntary conts. for some of those years..

    Best check and post back...
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • Silvertabby
    Silvertabby Posts: 9,044 Forumite
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    Your State pension won't be reduced because you have always been contracted out - you just may not get the new single tier rate of £164 per week. Due to the transitional protections, you'll get at least what you would have received under the old scheme if that is higher than your entitlement under the new scheme.

    The problem here is that people mistakenly think that the new single tier pension is the new basic rate pension. It isn't.

    Have you worked/paid NI since 2014? If not, you should be able to bump up your pension by paying voluntary Class 3 NI contributions. I'm in a similar position (retired in 2016, State pension due 2022) and I will be doing this.

    As Gunjack says, the first thing to do is to check the exact wording of your on-line forecast. Come back to us if you are still unsure.
  • Rodders53
    Rodders53 Posts: 2,171 Forumite
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    You should be able to tell from your forecast SP amount(s)... https://www.gov.uk/check-state-pension
    What are they?

    Full pension for your age is £164.35 per week (assuming you have 35+ qualifying NI years).

    If your forecast is less then it is because of contracting out... The probability is that you will have at least £125.95 per week as that is what you'd get under the old pension rules (30+ weeks NI). https://www.gov.uk/new-state-pension/how-its-calculated

    There may be other numbers based on if you buy post 2016 NI years to get nearer the full new rules amount?
  • Gers
    Gers Posts: 12,054 Forumite
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    GunJack wrote: »
    What exactly does your online check say?

    something along the lines of:-

    ESTIMATE £xxx.xx per week

    based on contributions up to 5 Apr 2018

    there are also links on that page to your NI record, so you can see gaps. Have you paid NI for the last few years? If not, you may be able to increase SP by paying voluntary conts. for some of those years..

    Best check and post back...

    I'm not at home just now but know that I have a full NI record without any problem gaps. I have no voluntary payments to make which would contribute to my SP.
  • Gers
    Gers Posts: 12,054 Forumite
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    Here's what's online:
    Your forecast

    is not a guarantee and is based on the current law
    is based on your National Insurance record up to 5 April 2018
    does not include any increase due to inflation

    £164.35 is the most you can get

    You cannot improve your forecast any more.

    Summary

    48 years of full contributions

    1 year to contribute before 5 April 2019

    1 year when you did not contribute enough

    That one year was 2015 - 2016 and I know that there's no point doing voluntary contributions (see past posting!).

    The bottom line is that I can expect no reduction in my SP - apart from being taxed that is.
  • GunJack
    GunJack Posts: 11,676 Forumite
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    So you're there already :)
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • Gers
    Gers Posts: 12,054 Forumite
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    GunJack wrote: »
    So you're there already :)

    Yes - I just had a little cloud of doubt hanging about of my SP being reduced because of LG pension. I must have imagined it...:j Old age kicks in!!
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