Retiring

[denislawsbackheel]

No chance you will get the full state pension unfortunately. Opting out of Serps used to mean that the money you would have paid into Serps went into your private pension. In a way it was a swings and roundabouts agreement, you get less state pension but your private pension should prosper more. It was called contracting out but I think that it ceased being an option a few years ago but I may be wrong. The rules are so complex though and change from time to time. Until I delved into it I actually didn't even know my company pension had contracted out decades ago. I had no say in it at all. Like most people you just do your job and enjoy life, a pension is for old people until all of a sudden you realise that is you lol.

A better company/private pension is probably wise though. It is the only chance you have of retiring early. If you have to wait for the state pension you are looking at at least 67 now I think depending on your age. I would look at your private pension and savings providing the luxuries in life and your state one covering the basics, such as utility bills and food. With a mortgage paid off most people should cope okay unless they have very expensive hobbies or addictions.

I was fed up with working long shifts, travel and the stress of working. One day I sat down and worked out what I was working for aside from the basics. Two holidays a year, going to the match and odd nights out. I realised if I took early retirement I could stil do this so finishing work was a no brainer. Yes it meant dipping into my savings for the holidays and any other luxuries but this was only until my state pension kicks in, then I have that added. My decision was swayed by seeing around ten people in the company die before the age of sixty. All these were working towards this utopia of a relaxed enjoyable retirement but never reached it. If this covid situation has taught us anything it's nothing is guaranteed in life. Now even those nights in the pub, holidays abroad and going to the match are gone, so you could be earning 100 grand a year but there is nothing to spend it on. Live it now and live it fast. While it's sensible to have one eye on the future don't make that at the expense of enjoying the moment.

Great post

 

[AJ71]

How does this work though if you change jobs, my company opted out but i then moved on about 12 months later. No idea if any of the companies I worked for since had opted out or not.

My understanding is changing jobs shouldn't matter, the company schemes you were in would either have been contracted in or out and depending on this dictates if you get less state pension (and the difference in theory, would be made up by your company pension) You won't necessarily be able to identify this difference being made up because not all company schemes will split this out and show you it separately (that's the case for me). I agree with flook though, the guidance is as clear as mud.

 

[flook]

You are correct.
The COPE figure is deducted from your state pension and paid via your private pension.

There is no explanation however why you cannot regain the contracted out years via your contributions over and above the 35 years which gains you the maximum state pension, particularly given it's supposed to be (I believe) your best 35 years which are taken into account.

 

[117 M34]

This doesn't concern me as I'm in my 30s and have always worked but just intrigued with the talk of needing to do 35 years to get full pension.
What happens with the people who have spent lots of their life on benefits. Do they get a minimum pension or do they not get anything at all? Is the minimum enough to actually live on or do they continue to get some sort of top up?

 

[denislawsbackheel]

This doesn't concern me as I'm in my 30s and have always worked but just intrigued with the talk of needing to do 35 years to get full pension.
What happens with the people who have spent lots of their life on benefits. Do they get a minimum pension or do they not get anything at all? Is the minimum enough to actually live on or do they continue to get some sort of top up?

Everyone claiming job seekers allowance is credited with NI.
Parents (one) can claim child benefit until the youngest child is 12 for which they get NI credits. This is even if their income takes them over the threshold to receive child benefit. They still get NI credits as long as they register.
Anyone who is a carer and gets carers allowance gets NI credits.
Any grandparent under retirement age looking after grandchildren whilst parents work can receive the parents child benefit NI credits.
As long as you have ten years of full credit you get 10/35 of the state pension, £50 a week. Less than 10 years you get no state pension.
Never mind the minimum being enough to live on the maximum is not enough to live on. Could you live on £175 a week?
For pensioners who only get a very small state pension due to lack of years paying in there is pension credit explained here.

Pension Credit: what is Pension Credit? | MoneyHelper

Pension Credit provides extra retirement income if you’re on a low income. Discover if you're eligible to make a claim and how much you could get.

www.moneyadviceservice.org.uk

 

[cyberblue]

This doesn't concern me as I'm in my 30s and have always worked but just intrigued with the talk of needing to do 35 years to get full pension.
What happens with the people who have spent lots of their life on benefits. Do they get a minimum pension or do they not get anything at all? Is the minimum enough to actually live on or do they continue to get some sort of top up?

People on benefits are deemed to have paid full contributions so will get the full amount but if you worked all your life but your company opted out of SERPS you will get £599 per month

 

[BlueMojito]

The new State Pension

How to get and claim your State Pension, State Pension age - for men born on or after 6 April 1951 and women born on or after 6 April 1953.

www.gov.uk

This might be a useful read.
Seems April 2016 is an important date.

 

[FantasyIreland]

People on benefits are deemed to have paid full contributions so will get the full amount but if you worked all your life but your company opted out of SERPS you will get £599 per month

Choose to do fuck all for much of your existence and enjoy the same benefits that those who have grafted for 40 plus years get......yeah,that seems right.

 

[denislawsbackheel]

People on benefits are deemed to have paid full contributions so will get the full amount but if you worked all your life but your company opted out of SERPS you will get £599 per month

And you will get the rest in COPE payments

 

[denislawsbackheel]

Choose to do fuck all for much of your existence and enjoy the same benefits that those who have grafted for 40 plus years get......yeah,that seems right.

What a bigoted fucker