Retiring

flook said:
This is the significant bit from that link

However, the good news is that you may still get a full ‘flat rate’ pension of £175.20 when you retire. This is because all of the years you work from 16/17 onwards are adding to your pension and slowly wiping out the impact of the deduction for contracting out.

Which confirms that you CAN get the full SP so long as your "contracted in" period is a total of 35 years. If you have less than 35 years at state pension age, you lose about £5/week (according to the article), so if you have 32 years contributions, your SP would be £160

At least, I think that's what it means.......
Click to expand...
Actually, it's a lot better than that for most of those that did contract out. What happened was in 2016 the pension changed from the 2-part state pension (basic + additional) to the 1-part state pension we have now. The contribution qualifying period increased at the same time from 30 years to 35 years (sounds bad but we all generally contribute 40yrs + anyway so it's not a biggie unless there are long periods without working). In 2016 the government made the COPE calculations for everyone who had ever been contracted out (of the state additional pension).

I'm up to full pension as of this April but was contracted out for about 10 years. My number of years contributions is 36, so 26 contracted in and 10 contracted out. I don't need another 9 years to make 35 yrs "contracted in" though. If I had never contracted out I would have got to full pension around 2015, so only 6 extra years to make up the difference.
 
give it to gordon said:
I am nearly 61. One of my pension pots is 125k but only paying about 3k year !

I want to retire or go part time , do financial advisor cost alot because I havent a clue what to do .

Thanks
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friend of mine has paid a FA around 4k in the last year or so, but he had a couple of things to sort that were a little out of the ordinary. Get quotes/ideas of costs
 
give it to gordon said:
I am nearly 61. One of my pension pots is 125k but only paying about 3k year !

I want to retire or go part time , do financial advisor cost alot because I havent a clue what to do .

Thanks
Click to expand...
It depends on your type of pension. I've got one that's now dropped from 84k to 73k in a year but it's a defined benefit pension that pays 4K per year which is guaranteed. A lot of Financial Advisers are unable to sign off transferring the pot as their indemnity insurance doesn't allow it. If it's a defined contribution pot it's much easier. Depending on your health I think you should be able to achieve about 4-5k per year if you buy an annuity but at your age if you can transfer and are able to take 25% of the pot tax free (not all DB schemes allow this) you could draw down 12,500 per year tax free until your state pension kicks in then 3,000 per year until you've drawn out, that's all assuming you have no other income. If you have you'll be taxed on 75% of the pot and initially some at 40% which you have to claim back. Get a reputable Financial Adviser, shouldn't cost you more than a grand and it's the law anyway when taking the pot outside of your pension providers normal payout.
 
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flook said:
friend of mine has paid a FA around 4k in the last year or so, but he had a couple of things to sort that were a little out of the ordinary. Get quotes/ideas of costs
Click to expand...
My sister works for a FA and he wouldn't charge anywhere near that but as I stated in another post his indemnity insurance won't allow him to sign off any deal that is not financially practical based in a pension of a healthy person living until 89 years of age. Some of the less scrupulous Advisers will do it but they charge a lot more, my mate had a Civil Service pot and was quoted 16k on a 200k pension, there's some sharks out there.
 
Have to say hats off to City fans for this thread...never going onto RAWK I couldnt tell you if there is such a thread on there.....of course you would no doubt tell me that as most dippers are unemployed they dont have to worry about workplace pensions...
That said some interesting posts.
I can only suggest everyone gets the free consultation from Pensionwise.gov.uk or spends some time reading up at Moneyadviceservice.
As with everything, knowledge is power!
It makes sense to have an idea what you have to live on later in life.
I'm just glad I have my civil service pension and took out my added years. QAlthough the whole McCloud judgement is still clouding the issue and is impacting so many across the country
 
LGWIO said:
Have to say hats off to City fans for this thread...never going onto RAWK I couldnt tell you if there is such a thread on there.....of course you would no doubt tell me that as most dippers are unemployed they dont have to worry about workplace pensions...
That said some interesting posts.
I can only suggest everyone gets the free consultation from Pensionwise.gov.uk or spends some time reading up at Moneyadviceservice.
As with everything, knowledge is power!
It makes sense to have an idea what you have to live on later in life.
I'm just glad I have my civil service pension and took out my added years. QAlthough the whole McCloud judgement is still clouding the issue and is impacting so many across the country
Click to expand...

Most dippers are unemployed so don't have to worry about workplace pensions.
 
give it to gordon said:
I am nearly 61. One of my pension pots is 125k but only paying about 3k year !

I want to retire or go part time , do financial advisor cost alot because I havent a clue what to do .

Thanks
Click to expand...
Not sure of current position but FT on Saturday lists the best funds for using your cash ie they want cash.
I looked round before transferring for best pension many years ago.
 
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