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  • FIRST POST
    • bella111
    • By bella111 16th May 18, 7:24 AM
    • 1Posts
    • 0Thanks
    bella111
    State Pension
    • #1
    • 16th May 18, 7:24 AM
    State Pension 16th May 18 at 7:24 AM
    I have noticed most of my friends get between 30 to 50 State Pension more than me, am I being penalised for paying into a private scheme for 40 years.
Page 1
    • tacpot12
    • By tacpot12 16th May 18, 7:39 AM
    • 902 Posts
    • 772 Thanks
    tacpot12
    • #2
    • 16th May 18, 7:39 AM
    • #2
    • 16th May 18, 7:39 AM
    No, the state contributed some of your National Insurance contributions to your private pension so you should not have lost out.
    • MK62
    • By MK62 16th May 18, 8:10 AM
    • 81 Posts
    • 59 Thanks
    MK62
    • #3
    • 16th May 18, 8:10 AM
    • #3
    • 16th May 18, 8:10 AM
    What levels are you comparing?
    It could also be down to them having built up more SERPS/S2P....
    • AnotherJoe
    • By AnotherJoe 16th May 18, 8:19 AM
    • 9,420 Posts
    • 10,409 Thanks
    AnotherJoe
    • #4
    • 16th May 18, 8:19 AM
    • #4
    • 16th May 18, 8:19 AM
    I have noticed most of my friends get between 30 to 50 State Pension more than me, am I being penalised for paying into a private scheme for 40 years.
    Originally posted by bella111
    Is your private scheme plus SP more than 30 to 50 more than your friends?
    From what I've seen everyone who paid into a private scheme (and opted out of SERPS) , when you sum the lower SP and private pension, will be higher than the SP alone from someone who didn't do that..
    Last edited by AnotherJoe; 16-05-2018 at 8:32 AM.
    • Jack Itin
    • By Jack Itin 16th May 18, 9:53 AM
    • 311 Posts
    • 131 Thanks
    Jack Itin
    • #5
    • 16th May 18, 9:53 AM
    • #5
    • 16th May 18, 9:53 AM
    It certainly FEELS that way......a couple of friends are getting the full SP......I don't......but then I realized that I am getting about 600 a month private pension and they don't......but it still feels like you are being "victimised" for contracting out.....
    Retired (Early) April 2015
    • Mojisola
    • By Mojisola 16th May 18, 9:57 AM
    • 29,250 Posts
    • 74,712 Thanks
    Mojisola
    • #6
    • 16th May 18, 9:57 AM
    • #6
    • 16th May 18, 9:57 AM
    I am getting about 600 a month private pension and they don't......but it still feels like you are being "victimised" for contracting out.....
    Originally posted by Jack Itin
    You contracted out - why would expect to get the same as the people who continued to pay in?
    • Jack Itin
    • By Jack Itin 16th May 18, 10:00 AM
    • 311 Posts
    • 131 Thanks
    Jack Itin
    • #7
    • 16th May 18, 10:00 AM
    • #7
    • 16th May 18, 10:00 AM
    You contracted out - why would expect to get the same as the people who continued to pay in?
    Originally posted by Mojisola
    I don't......but it stills FEELS like it
    Retired (Early) April 2015
    • PasturesNew
    • By PasturesNew 16th May 18, 10:07 AM
    • 62,485 Posts
    • 365,971 Thanks
    PasturesNew
    • #8
    • 16th May 18, 10:07 AM
    • #8
    • 16th May 18, 10:07 AM
    It sounds like they'd get the basic state pension and have no other income at all, so they'd be getting a "top up" of Pension Credit/whatever, bringing their total income to about 150-160/week or so (single person level).

    So they'd get, say, 80/week pension and about 80/week to bring them up to the "minimum income" amount of about 160/week.

    You'd get the 80/week, but as you're getting 150/week private pension, your income is 230/week, which is over the 160/week minimum.

    You're better off as you have all that extra disposable income of about 70/week more than they'll have... and it comes every week. While they're sitting at home staring out of the window each day, alone, you can be down the pub being fed a nice hot pub meal and a pint with friends.

    You're not "victimised", they've had the benefit of "charity" to bring them up to a level where they can buy a new cardigan just before winter and have the heating on for more than 3 hours/day when it gets very cold. While they're sitting there in their cardigan, alone, checking the clock for how long the heating's been on .... you're in the warm pub, having a hot pub meal and a pint with friends.
    • Jack Itin
    • By Jack Itin 16th May 18, 10:25 AM
    • 311 Posts
    • 131 Thanks
    Jack Itin
    • #9
    • 16th May 18, 10:25 AM
    • #9
    • 16th May 18, 10:25 AM
    I only felt that way initially.....couple of pals get 164 a week......I only get 147 (poss. 152)......I also get about 550 per month from private pension, they don't, so no complaints here.....sorry to OP if I have hijacked your thread.........
    Retired (Early) April 2015
    • GunJack
    • By GunJack 16th May 18, 10:45 AM
    • 10,117 Posts
    • 7,575 Thanks
    GunJack
    It still astounds me that people don't appreciate what contracting out into a.n. other (extra) pension has done for them.....almost always be better off like that than with SERPS/S2P.
    ......Gettin' There, Wherever There is......
    • brewerdave
    • By brewerdave 16th May 18, 11:38 AM
    • 4,843 Posts
    • 2,013 Thanks
    brewerdave
    It still astounds me that people don't appreciate what contracting out into a.n. other (extra) pension has done for them.....almost always be better off like that than with SERPS/S2P.
    Originally posted by GunJack
    ...unfortunately, the longer term benefits have never been well explained (see, for example, https://forums.moneysavingexpert.com/showthread.php?t=5843577) - certainly people of my era (born in the 50s) were just extremely grateful to pay less NI at the time, and gave little or no thought to a potential "windfall" at retirement age.
    • Mnd
    • By Mnd 16th May 18, 3:45 PM
    • 503 Posts
    • 607 Thanks
    Mnd
    [QUOTE=PasturesNew;

    You can be down the pub being fed a nice hot pub meal and a pint with friends.

    [/QUOTE]

    Problem is the friends are all at home gazing at you going down the pub without them
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