CDNReturner

Does anyone have any experience yet of how being contracted-out has affected their State Pension? I can't seem to figure out how much this will affect my pension.

I have 3 years to go before I can claim. I can't remember how long I was contracted-out but probably at least 10 years if not more before I was advised to contract back in again. I was probably mis-sold too, though it was no doubt all over my head at the time.

Last year I paid voluntary Class-2 to bring me up to 30 years but yesterday I received a bill for the 2017-2018 year yesterday which I wasn't expecting and I'm not sure whether I should be paying it or not.......and then when you throw in this is the last year for Class 2 I'm even more confused.

Last year I thought I was told I'd be paid under the old rules (hence paying up to 30 years) but reading the official website it implies I will be paid under the new rules as I will retire after April 6, 2016. So confused yet again!

bats

You now need 35 years for a full state pension. It's not easy to work out how much difference the opting out thing makes so you're best to apply for a pension forecast.

CDNReturner

I guess I omitted to say I did what they advised me last year, 2017, after the 2016 new rules came in.

bats

I'm nit much help, I just fund it a confusing and annoying mess.i shoukd look into sting extra but then I wonder if it's worth it as the pension never goes up.

Tumbling_Dice

Contracting out meant that the money that would otherwise have gone towards SERPS /S2P was paid instead into a personal pension plan. This would show up as protected rights on your statement as there used to be rules about when that money could be drawn.

The basic state pension is based on years of NI contributions and has now gone up to 35 to qualify for the full state pension. This is why you likely got a bill.

S2P was abolished so, if you got money from it, you are quids in.

Hurlabrick

You can check your UK state pension entitlement here (if you have not already done so):
https://www.gov.uk/check-state-pension

spouse of scouse

If the date you're eligible to claim the State pension is on or after 6 April 2016, you'll be assessed and paid under the new rules.

scrubbedexpat134

The new single tier full pension for 2018 is 164 quid a week. if you have 30 years contributions you will get 30/35th of that less a bit more for the years you were contracted out. There is nowhere on the HMRC site that tells you how to calculate the reduction for contracted out years, you need to apply for a pension forecast to get the exact amount.Sign up for the HMRC personal income tax account and you can see every thing about you tax, tax code, nat ins contributions etc etc.

CDNReturner

OK, I'll try to sign up again but it didn't work last year. So when I did phone up early in 2017 they told me my pension would be coming to me under the old rules, hence why I only had to pay up to 8 years to bring me up to 30. This was followed by a letter with the back-dated years and I paid up last June.

I will call them this week to try and figure it all out yet again.

CDNReturner

Well, tried again to sign in. Got the user id, got the access code. But didn't get a screen where I could enter the access code. Every time I hit continue it sends me to the screen TO SEND me an access code. I know last year this only seemed to work for people still using a UK address.

bats

I went online today, eventually got to the relevant info and opting out means bumpy ones ion is reduced by £89. I have 35 years but am going to ask if buying extra years can offset that

CDNReturner

You mean it was reduced by 89 pounds a week? Yikes!

I did eventually manage to log in but it still asks for a UK address. I don't know why they can't say that before you go through the hassle of getting an id and access code.

CDNReturner

It seems the online pension forecast only works for those of you still using a UK address or have a UK passport. My passport is Canadian. Now have to wait for snail mail to get an updated forecast.

spouse of scouse

While we were still in Australia my husband's pension forecast had to be sent snail mail too, from memory it took 6 weeks.

CDNReturner

Yes, I've always found that too or even worse, but I just noticed the request for voluntary contributions letter was dated April 9 and I got it April 20 so maybe they finally got the message about overseas snail mail.