Uk state pension age and calculated benefits
#16
Re: Uk state pension age and calculated benefits
Just a word of warning or advice really, if you have been contracted out
And have a company pension, this can reduce what you will get when your state pension starts, my weekly pension was reduced by £58.00 a week, £232.00 a month.
Overall i am £1000 a year worse off after receiving my private pensions.
And have a company pension, this can reduce what you will get when your state pension starts, my weekly pension was reduced by £58.00 a week, £232.00 a month.
Overall i am £1000 a year worse off after receiving my private pensions.
#17
Just Joined
Joined: Sep 2017
Posts: 15
Re: Uk state pension age and calculated benefits
Yes i get £58 a month and £1100 anually making a shortfall of £1220 anually luckily however my wife gets a pension based on my ni , even so £1220 is 81000 pesos at todays exchange rate
#18
Re: Uk state pension age and calculated benefits
So you get nothing from your company pension. I know mine is reduced but the payments from my company pension just about cover the reduction. So I end up getting about the same amount of money.
#19
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Joined: Dec 2013
Location: Consolacion,Cebu
Posts: 1,928
Re: Uk state pension age and calculated benefits
An interesting thread. I remember when contracting out first started, my then company got their pension actuaries to do a calculation for each employee , based on projected returns, as to whether it was better for them to stay in the full NI system , or to contract out and use the rebate of NI to add to the company pension. Basically, the younger you were the more advantageous it appeared to contract out.( using the then standard return of 3,5 and 8% against the average increase in State Pension) I was about 47 then and in my case it was finely balanced so I elected to stay in the NI State scheme. It has paid off for me as my SERPS is more than my basic pension and better than the return I would have got by adding the rebate to the company scheme. Oh, we were also told that if contracting out, our State pension would be reduced due to the lower level of NI we were paying. They could not give exact figures as it would depend on how long you were contracted out before retiring. The idea was that your "enhanced" company pension would more than make up the shortfall! well, once annuity rates started dropping that really stirred the pot for many folk...........
#20
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Joined: Mar 2005
Location: Island and Province of Cebu-Philippines
Posts: 562
Re: Uk state pension age and calculated benefits
In our company, we were not given an option. We had to contract out. I would gladly have paid increased contributions, to our fund, but that was not allowed. I would be: "over subscribed!"
However I get my Graduated Pension, the biggest swindle foisted on the working population. It only benefitted those nearing retirement.
However I get my Graduated Pension, the biggest swindle foisted on the working population. It only benefitted those nearing retirement.
#21
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Joined: Dec 2013
Location: Consolacion,Cebu
Posts: 1,928
Re: Uk state pension age and calculated benefits
In our company, we were not given an option. We had to contract out. I would gladly have paid increased contributions, to our fund, but that was not allowed. I would be: "over subscribed!"
However I get my Graduated Pension, the biggest swindle foisted on the working population. It only benefitted those nearing retirement.
However I get my Graduated Pension, the biggest swindle foisted on the working population. It only benefitted those nearing retirement.
#22
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Joined: Feb 2014
Location: Capiz
Posts: 1,646
Re: Uk state pension age and calculated benefits
You lucky thing, all I got was a smiley face followed by a "0". Lucky I have a Norwegian pension which I paid into for the same amount of years but when I am 67 I get paid about 2.5 times as much as the max UK pension tax free.
#23
Forum Regular
Joined: Sep 2017
Posts: 80
Re: Uk state pension age and calculated benefits
Just a word of warning or advice really, if you have been contracted out
And have a company pension, this can reduce what you will get when your state pension starts, my weekly pension was reduced by £58.00 a week, £232.00 a month.
Overall i am £1000 a year worse off after receiving my private pensions.
And have a company pension, this can reduce what you will get when your state pension starts, my weekly pension was reduced by £58.00 a week, £232.00 a month.
Overall i am £1000 a year worse off after receiving my private pensions.
Please correct me if I'm wrong, but are you saying that because you're receiving company retirement pension, the government reduced your state pension weekly benefit??
#24
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Joined: Nov 2012
Location: bute
Posts: 9,740
Re: Uk state pension age and calculated benefits
I wonder how many employees at the time understood the complexities of "contracting-in" and "contracting-out". The State has an interest in its citizens remaining uninformed. We are encouraged to indulge in the circuses of modern life and to ignore what is happening in the Forum and the Senate !
#25
Re: Uk state pension age and calculated benefits
You state pension is not reduced, the reduction is in you 2nd prnsion because by contracting out you pay nothing into it.
#27
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Joined: Dec 2013
Location: Consolacion,Cebu
Posts: 1,928
Re: Uk state pension age and calculated benefits
True and here's the details https://www.gov.uk/additional-state-pension/eligibility
So if you reached pension age BEFORE April 2016 - like me , then you get the additional pension but if it's AFTER April 2016 then hard luck I'm afraid, you only get the new State pension of £159.64
So if you reached pension age BEFORE April 2016 - like me , then you get the additional pension but if it's AFTER April 2016 then hard luck I'm afraid, you only get the new State pension of £159.64
#28
Re: Uk state pension age and calculated benefits
True and here's the details https://www.gov.uk/additional-state-pension/eligibility
So if you reached pension age BEFORE April 2016 - like me , then you get the additional pension but if it's AFTER April 2016 then hard luck I'm afraid, you only get the new State pension of £159.64
So if you reached pension age BEFORE April 2016 - like me , then you get the additional pension but if it's AFTER April 2016 then hard luck I'm afraid, you only get the new State pension of £159.64
#29
Re: Uk state pension age and calculated benefits
I vaguely remember being told at the time that contracting in was Government backed and was safer than the stock market. The payout was guaranteed, how more wrong could they have been.
Millions 'to lose £1,400 on average' under new state pension - Telegraph
SERPS depends on your pay over a maximum of 20 years. The only part of your pay which it takes into account is the band between the National Insurance lower and upper earnings limits. Each year's pay within this band is uprated in line with inflation. A maximum of 20 years of these revalued pay figures is then used to work out your SERPS pension. The maximum pension you can receive from SERPS is 25% of your average band earnings.
That is why is a slight gamble paying for extra years as the Government can change the rules at any time.
Last edited by mrken30; Oct 1st 2017 at 4:34 am.
#30
Re: Uk state pension age and calculated benefits
I've had a statement since they made the changes and unless they have change it again you still get what you paid for up until the change but they stopped you accruing more after something like 2012. My statement still gave me something like £225 per week. If you read the Telegraph article those in their late 50s and near retirement won't loose their entitlement.
Last edited by Gazza-d; Oct 1st 2017 at 5:31 am.