Retiring

paulchapo said:
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.
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Great post
 
abu13 said:
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.
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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.
 
denislawsbackheel said:
You are correct.
The COPE figure is deducted from your state pension and paid via your private pension.
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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.
 
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?
 
117 M34 said:
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?
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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.
www.moneyadviceservice.org.uk

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 www.moneyadviceservice.org.uk
 
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117 M34 said:
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?
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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
 
www.gov.uk

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 www.gov.uk

This might be a useful read.
Seems April 2016 is an important date.
 
cyberblue said:
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
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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.
 
cyberblue said:
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
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And you will get the rest in COPE payments
 
Contracting out deductions relate to being in a Defined Benefit Contracted Out Scheme as you paid lower NI contributions. The company scheme effectively guarantees a minimum pension which would bridge the loss on the State Pension. The key bit is Defined Benefit (Final Salary). It is not the same as contracting out into a private pension. The guides I posted earlier in the thread explain this in more detail.
 
FantasyIreland said:
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.
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Well they wont get the same benefits as those who grafted will they? They wont get any occupational pension, and/or any private pension provision that working people will have made. Those who worked will get the state pension plus that, and they wont. That is the exact opposite of 'the same benefits' isnt it?
 
Uncle Wally One Ball said:
Well they wont get the same benefits as those who grafted will they? They wont get any occupational pension, and/or any private pension provision that working people will have made. Those who worked will get the state pension plus that, and they wont. That is the exact opposite of 'the same benefits' isnt it?
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The more I read of fantasy islands post the more I realise How he looks down on people less fortunate than himself. There’s many posts he has made this clear if someone was drowning in a pool he’d put his foot on their head, he has no shame it’s like when that **** from the edl went to wythenshawe with his racist shite views fantasy’s reply a breeding ground for his supporters just because your less fortunate than other people in life doesn’t make you a scumbag there’s lots of decent people in society who have not had the opportunity’s other people have had
 
denislawsbackheel said:
If you are looking for work and register with the job centre weekly you are credited with NI insurance.
Anyone who thinks this is wrong is a ****.
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Wouldn't argue with that but would question given I was contracted out for 14 years lowest contribution in this time was just under £3k but that doesn't class as a full year. But thanks to this thread I still have a chance to change plans.
 
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Indaparkside said:
The more I read of fantasy islands post the more I realise How he looks down on people less fortunate than himself. There’s many posts he has made this clear if someone was drowning in a pool he’d put his foot on their head, he has no shame it’s like when that **** from the edl went to wythenshawe with his racist shite views fantasy’s reply a breeding ground for his supporters just because your less fortunate than other people in life doesn’t make you a scumbag there’s lots of decent people in society who have not had the opportunity’s other people have had
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Lol,you dont know anything me,my background,or my sacrifices/ accomplishments in life,so wind you fucking neck in with the above shite.

The key word in my comment was 'choose'.As i have said on numerous occasions before,i have every sympathy/empathy for those genuinely in need,but pisstaking leaches can go fuck em selves,just like folk who want to twist my words.
 
Have to agree with @FantasyIreland here it’s not a bigoted view, my dad worked all his life brought 3 kids up Etc etc. Now he has his pension plus state, he’s ok for savings however he has to pay for everything. The amount of stuff he can’t claim because he “earns” to much doesnt sit quite right with me, yet someone who doesn’t contribute gets a lot free, basically he’s means tested. At the moment it seems the country can’t cope with us getting older and supporting us, however the last 3 generations there have been a lot more career layabouts than previous, they will all need “looking” after in about 20/30 years time, not looking good is it? No doubt they’ll means test the state pension and you’ll end up with sod all if you got a private one, it’s a way to cut costs and supplement those that couldn’t be arsed.
 
FantasyIreland said:
Lol,you dont know anything me,my background,or my sacrifices/ accomplishments in life,so wind you fucking neck in with the above shite.

The key word in my comment was 'choose'.As i have said on numerous occasions before,i have every sympathy/empathy for those genuinely in need,but pisstaking leaches can go fuck em selves,just like folk who want to twist my words.
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Amazing isn’t how many people you know who have made a choice of a life on benefits.
I’ve never met anyone.
 
I'm 27 and don't plan to work a day after 50. Life is too short, and there's many a man with dreams of retirement but health and work stress get the better of them.

I'm too honest to climb the corporate ladder I'm currently at the bottom of, fighting for a seat on the gravy train. But hoping some shrewd savings and living within my means long term will set me right. I won't get to the superstar wage, certainly not with my current empliar, sorry employer. But hoping I can save enough to afford a house and my own family one day.
 
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