Retiring

Chippy_boy said:
I'm puzzled. Why is your state pension being reduced? The state pension is fixed (based on how many years you've paid in) and is not means tested. You could be on £200k a year in your private pensions and you'd still get the same state pension. What am I missing?
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Not sure, the reduction may be because when I applied for the forecast I had just under 35 years contributions? Maybe if I asked for another forecast I'd get full as I now have the 35 years required. I still have 12 years to wait so I'm not in any hurry to account for £18 a week :). When I applied for the forecast I just wanted to make sure I had no shocks in store
 
cyberblue said:
If you worked for the majority of public services or the armed forces your state pension will be reduced as they stopped paying full contribution to SERPS ( state earning related pension scheme)
Majority of people concerned won't realise this till they receive their state pension
Even if you ask for a forecast it probably won't be accurate
Hope this helps
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no not anything like that, private construction related companies
 
cyberblue said:
Yes it is annoying how little state pension people recieve after a lifetime of work
Your private pension will probably get taxed once you receive your state pension
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I made a decision a long time ago, back during the private pension scandals, that I would make my own provision to top up the state pension, and have cash and S&S ISA's which will provide a decent income before state pension and to supplement the SP/PP when that time arrives. As such I sacrificed the "government contribution" but gain back when I retire as I will pay next to nothing in income tax.....I think
 
flook said:
Not sure, the reduction may be because when I applied for the forecast I had just under 35 years contributions? Maybe if I asked for another forecast I'd get full as I now have the 35 years required. I still have 12 years to wait so I'm not in any hurry to account for £18 a week :). When I applied for the forecast I just wanted to make sure I had no shocks in store
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Maybe that was it. You should not be getting less just because you have a bit extra of your own pension.

That said, who knows where they will raid in order to pay back some of the COVID-19 costs. I can imagine they will hit tax relief on pension contributions and it's far from impossible they will start to reduce the state pension for people who have their own... making your lifetime of payments a fucking waste of time. God forbid they should do this but I would not put it past them.
 
flook said:
Not sure, the reduction may be because when I applied for the forecast I had just under 35 years contributions? Maybe if I asked for another forecast I'd get full as I now have the 35 years required. I still have 12 years to wait so I'm not in any hurry to account for £18 a week :). When I applied for the forecast I just wanted to make sure I had no shocks in store
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Since 2016 You need 10 years full contributions to get anything and 35 full years to get the maximum.
If you ask for the written forecast it will tell you if you were ever contracted out and the effect it will have.
 
Chippy_boy said:
Maybe that was it. You should not be getting less just because you have a bit extra of your own pension.

That said, who knows where they will raid in order to pay back some of the COVID-19 costs. I can imagine they will hit tax relief on pension contributions and it's far from impossible they will start to reduce the state pension for people who have their own... making your lifetime of payments a fucking waste of time. God forbid they should do this but I would not put it past them.
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I very much doubt they will hit the UK state pension. It’s already the lowest in Europe. Much more likely will be things like levelling income tax, capital gains tax, dividend taxes etc at the same rate, abolishing high rate pension tax relief, a wealth tax and maybe hiking inheritance tax rates after allowances.
 
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Chippy_boy said:
Maybe that was it. You should not be getting less just because you have a bit extra of your own pension.

That said, who knows where they will raid in order to pay back some of the COVID-19 costs. I can imagine they will hit tax relief on pension contributions and it's far from impossible they will start to reduce the state pension for people who have their own... making your lifetime of payments a fucking waste of time. God forbid they should do this but I would not put it past them.
Click to expand...
Anyone who was ever in a contracted out workplace pension before 2016 will have less state pension.
 
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