Retiring

squirtyflower said:
I recall the saving of removing tax relief on pension contributions being in the region of £37 billion per annum.
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Really? Yes I guess. What really fucks me off is when Labour start talking about tax relief as a tax giveaway. Person puts in £60 and the taxman "gives them" £40. What bollocks. It's the person's earned £100 in the first place. Taking a bit less off someone is NOT giving them something.
 
squirtyflower said:
It all depends on your NI profile.
You need 35 years of full contributions to get the full pension, doesn’t matter when that is achieved.
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Yes, should have pointed that out. I too am unsure of the HMRC account page as it says I'll get full pension but I need to check when I contracted out and when I went back in. Thought I was out ten yrs but might be less. I've got 37 yrs contributions but can't see how I've got 35 full years.
 
squirtyflower said:
I know. However I’m not too sure yet whether I want to. I make more use of the cash I have now than cash I’ll get back later when I’ll be too old to spend it usefully.
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I’m the same effectively 30 put of my 35 are at the lower rate, pissed off if I’m honest as I like millions of others didn’t know and I’m pretty up on my pension stuff. I have a feeling to claw back Covid you’ll end up retiring at 70, tax relief may go and basically you’ll die before you get it. I won’t get mine until I’m 68 so that’s another 16 years off that will give me around £2k a month plus whatever my wife brings in she will hopefully still be working, that’s more than enough for me.
 
squirtyflower said:
I know. However I’m not too sure yet whether I want to. I make more use of the cash I have now than cash I’ll get back later when I’ll be too old to spend it usefully.
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Just to add... The problem is trying to 2nd guess what the bastard taxman is going to do to you in the future. Several years back I decided not to put much into my pension but to keep the cash invested and building up elsewhere, with the benefit of it being more liquid and accessible should I need it. The plan was that I would then pump massive amounts in - like maybe 100% of my salary - in the run up to retirement, living of the accrued savings whilst I did that.

And then the twats started limiting the tax-free contributions you can put in, and my plan is buggered.
 
Quick question...Upon checking my state pension forecast, based on paying NI for another 3 years (which I should achieve easily) it is saying I will get £175/week.

However it also says my COPE amount (I was contracted out for years due to a previous work place pension) is £39.40 a week. Does this mean I am forecast to receive £175-£39.40 = £135.60/week ??? And that the COPE amount above is to be paid by my workplace pension??

Thanks in advance
 
squirtyflower said:
Most of my career has been in the public service and so we were contracted out of SERPS.
The new state pension introduced in 2016 is now about £175 per week. Much better than the old basic pension. However mine will be less than that due to the contracting out situation.
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Yes you will probably get the same as me
I didn't have a clue I was contracted out of SERPS so it came as a bit of a shock
Even worse when my Health Service Pension got taxed
Good Luck with yours
 
Chippy_boy said:
Really? Yes I guess. What really fucks me off is when Labour start talking about tax relief as a tax giveaway. Person puts in £60 and the taxman "gives them" £40. What bollocks. It's the person's earned £100 in the first place. Taking a bit less off someone is NOT giving them something.
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I read a report from the Treasury where they looked into removing tax relief on any pension contributions and then making pension non taxable when you receive it. The savings were about £25 billion per annum.
Then in 2016 the Treasury told us that the next budget, three weeks later, was going to remove the 40% tax relief and have a flat rate of 20% for all. Someone must have changed their mind as it wasn’t implemented.
 
squirtyflower said:
I read a report from the Treasury where they looked into removing tax relief on any pension contributions and then making pension non taxable when you receive it. The savings were about £25 billion per annum.
Then in 2016 the Treasury told us that the next budget, three weeks later, was going to remove the 40% tax relief and have a flat rate of 20% for all. Someone must have changed their mind as it wasn’t implemented.
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Thank God.

I am sure you remember the phrase "pension timebomb". People have not been saving enough for their pensions for years and as the population ages, and people live longer and longer, this is eventually going to bite us in the arse, big time. The very LAST thing the government should be doing is removing encouragements to save for your retirement.
 
willy eckerslike said:
Yes, should have pointed that out. I too am unsure of the HMRC account page as it says I'll get full pension but I need to check when I contracted out and when I went back in. Thought I was out ten yrs but might be less. I've got 37 yrs contributions but can't see how I've got 35 full years.
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If you were in college or university you get a full NI contribution paid for you.
You also get a full contribution if you are a carer or stay at home mum/dad looking after your own children.

As I have to do a self assessment form I have an HMRC account page that details my future state pension.
However I’ve been taking my work pension for the last four years and I have been working part-time for a union. I paid a good chunk of my salary into my pension for the tax relief so I now have a sum of money in a private pension that I will drawdown when needed. Then I’ll get my state pension and I’ll be like a pig in mud.
 
Chippy_boy said:
Thank God.

I am sure you remember the phrase "pension timebomb". People have not been saving enough for their pensions for years and as the population ages, and people live longer and longer, this is eventually going to bite us in the arse, big time. The very LAST thing the government should be doing is removing encouragements to save for your retirement.
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To be honest with you, very few people I work with, and they are high earners in the public sector, understand the concept of tax relief on their contributions.
Some of the younger ones are dumb enough to even leave the scheme where the employer contributes 23% to their 9%.
 
squirtyflower said:
To be honest with you, very few people I work with, and they are high earners in the public sector, understand the concept of tax relief on their contributions.
Some of the younger ones are dumb enough to even leave the scheme where the employer contributes 23% to their 9%.
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1611339443861.jpeg

I might add, you have to love the public sector. 23% + 9% ???? The best I have EVER had in the private sector was 6 + 3. Currently I get a maximum 4% from my employer so long as I put in 5%.
 
cyberblue said:
Yes you will probably get the same as me
I didn't have a clue I was contracted out of SERPS so it came as a bit of a shock
Even worse when my Health Service Pension got taxed
Good Luck with yours
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Cheers.
I fully understand what happened and how much it will affect me as I have been working for a public sector union for over six years advising their members on their pensions.
But those six years have also added to my full contributions and my pension has gone up by about £25 per week.
 
Millwallawayveteran1988 said:
www.royallondon.com

State benefits - Money guide - Royal London

There's a wide range of state benefits available if you’re struggling to make ends meet. Find out what benefits you're entitled to, the help available and more.
www.royallondon.com www.royallondon.com

Some useful information in here about the State Pension and how contracting out can affect this.
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That's an excellent article mate. Thanks for posting.

If I'm reading it correctly then I've answered my earlier pension, ie: I should still receive the pension of 175/week despite having a COPE amount of just over 39/week???

I feel sorry for my daughter's generation. They're going to get royally screwed at some point.
 
Kazzydeyna said:
That's an excellent article mate. Thanks for posting.

If I'm reading it correctly then I've answered my earlier pension, ie: I should still receive the pension of 175/week despite having a COPE amount of just over 39/week???

I feel sorry for my daughter's generation. They're going to get royally screwed at some point.
Click to expand...

www.which.co.uk

Your state pension forecast explained - Which?

Checking your state pension forecast will help you get a better idea of how much you can expect to receive and whether you can increase this amount.
www.which.co.uk www.which.co.uk


This explains it a bit more.

I think a lot of the younger generation will be saved by.

1. Auto Enrolment
2. Inheritance (and when a bit younger than this generation)
 
squirtyflower said:
It all depends on your NI profile.
You need 35 years of full contributions to get the full pension, doesn’t matter when that is achieved.
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My Mrs reaches 66 in July.
She has a contracted out private pension.
She has 39 years state pension contributions.
Still had to buy extra years to get her full entitlement.
 
denislawsbackheel said:
My Mrs reaches 66 in July.
She has a contracted out private pension.
She has 39 years state pension contributions.
Still had to buy extra years to get her full entitlement.
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And why is that different to what I posted?
Your Mrs has a similar profile to mine, I was under the full 35 years by a considerable amount but after leaving my previous job I started paying a full NI which has led to an increase in my state pension.

You need 35 full years to get the full pension. Your Mrs, out of her 39 years, has been contracted out, just as you say, therefore no full pension without the years buyback.

But is it worth it. Assuming she has occupational pension plus her state pension?
 
so it’s not just 35 years contributions that get you a full state pension then?
People who contracted out still paid NI.
My Mrs has £4K tv pension.
As far as state pension goes We calculated every year she bought back from the last 6 would put her in profit inside 3 years.
No brainer.
 
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