Contracted-Out & State Pension
#16
limey party pooper
Joined: Jul 2012
Posts: 9,979
Re: Contracted-Out & State Pension
I don't have a uk address but I used my passport number. I'm going to try and talk to them online tomorrow to see if I buy extra years that they would be used instead of the contracted out years.
#17
Re: Contracted-Out & State Pension
Yes, that was how my account was set up...using one of several 'partners' similar to how you can access your CRA account.
It may not be a smooth sign in process though. Between signing up and accessing some time later I had difficulty getting back in. I don't remember exactly but I think I had to set things up again as if doing it for the first time.
#18
Re: Contracted-Out & State Pension
Your post inspired me to have another look at the contracting out rules, but it didn't help much. The only thing that seemed to make sense was if you already have the required number of qualifying NI years, 35 in your case, but your forecast says you won't receive a full pension as a result of contracting out, then you can't pay additional contributions to make that money up. As you only have 30 years, that *should* mean that you can pay additional contributions. Clear as mud, hey?
My husband emigrated to Australia when he was 40, worked in the UK since he was 15. He did receive a contracting out letter while he was in Oz, but he can't remember who it was from Anyway, he agreed to whatever was being proposed and was sent a cheque for £3,000.
He hit State pension age in 2015 so is under the old rules, he's deemed as having 25/30 qualifying years, and he receives £111 per week. It's still a mystery to me!
Last edited by spouse of scouse; Apr 24th 2018 at 11:15 am.
#19
Re: Contracted-Out & State Pension
My husband emigrated to Australia when he was 40
He hit State pension age in 2015 so is under the old rules, he's deemed as having 25/30 qualifying years, and he receives £111 per week. It's still a mystery to me!
When I left the UK I had got 32 years in and 40 years were needed. A few years later the years needed dropped to 30 and I went from 32/40 (80%) to a full pension without having to do anything. Too good to be true.
Then, of course, it got changed to 35, but 32/35 (91%) is still better than I expected at the time I left. Qualifying age put back a year too, though.
#20
limey party pooper
Joined: Jul 2012
Posts: 9,979
Re: Contracted-Out & State Pension
well ive chatted to them on line and followed up with an email
Even though i have 35 years contributions only 30 of those would count as they 35 were before 2016 when the rules changed! So now we have to buy 5 years each. he said it would be Class 3 but ive emailed another section that deals with people who live abroad to see if if can be Class 2
Daylight robbery. Combine that with the changes to the dates for women's pensions and I'm well and truly stuffed.
Even though i have 35 years contributions only 30 of those would count as they 35 were before 2016 when the rules changed! So now we have to buy 5 years each. he said it would be Class 3 but ive emailed another section that deals with people who live abroad to see if if can be Class 2
Daylight robbery. Combine that with the changes to the dates for women's pensions and I'm well and truly stuffed.
#21
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Thread Starter
Joined: Mar 2004
Location: Hamilton, Ontario ex Loughton, Essex
Posts: 412
Re: Contracted-Out & State Pension
Thanks for that feedback Bats. Yes, I've fallen into the age for women changes, as well, although I do kind of agree there shouldn't be a difference in the ages. But, every time you think you understand it, it changes again and, of course, they don't keep us informed out of country. I think the website explaining it all is pretty good but there is always that one line of contradiction that throws us off. And not giving us a definitive answer on how contracting out affects our pension is not acceptable. I well remember the b* that sold me the contracting out pension. He also sold us one of those mortgages that went up all the time back in 1988 (house prices never fall, he said). I didn't fall for that line but unfortunately my ex-husband did.
#22
limey party pooper
Joined: Jul 2012
Posts: 9,979
Re: Contracted-Out & State Pension
Thanks for that feedback Bats. Yes, I've fallen into the age for women changes, as well, although I do kind of agree there shouldn't be a difference in the ages. But, every time you think you understand it, it changes again and, of course, they don't keep us informed out of country. I think the website explaining it all is pretty good but there is always that one line of contradiction that throws us off. And not giving us a definitive answer on how contracting out affects our pension is not acceptable. I well remember the b* that sold me the contracting out pension. He also sold us one of those mortgages that went up all the time back in 1988 (house prices never fall, he said). I didn't fall for that line but unfortunately my ex-husband did.
Im going to try online chat again to see if I get a different response
#23
limey party pooper
Joined: Jul 2012
Posts: 9,979
Re: Contracted-Out & State Pension
He didnt know the answer but seemed to think it did count. gave me a link to this
https://www.ageuk.org.uk/globalasset...ension_fcs.pdf
I've gone back into the pensions and NI payments pages and its very worth noting that the forecast is not the same as the estimate of what you will get. My estimate is less than the forecast, which presumes further payments. Plus it doesn't seem to take account of the opting out phase. Im going to roll over and surrender. I feel stupid when i comes to stuff like this.
edit
clicking on the link to opted out pensions takes you to a page that gives you the amount affected by opting out. This is a terribly misleading set up.
My pension is now going to be GBP4662 less than i thought it was going to be.
https://www.ageuk.org.uk/globalasset...ension_fcs.pdf
I've gone back into the pensions and NI payments pages and its very worth noting that the forecast is not the same as the estimate of what you will get. My estimate is less than the forecast, which presumes further payments. Plus it doesn't seem to take account of the opting out phase. Im going to roll over and surrender. I feel stupid when i comes to stuff like this.
edit
clicking on the link to opted out pensions takes you to a page that gives you the amount affected by opting out. This is a terribly misleading set up.
My pension is now going to be GBP4662 less than i thought it was going to be.
Last edited by bats; Apr 24th 2018 at 5:56 pm.
#24
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Joined: Mar 2004
Location: Hamilton, Ontario ex Loughton, Essex
Posts: 412
Re: Contracted-Out & State Pension
Bats,
where is the link to opted-out pensions? Is that only if you can see your forecast online? I did a search on gov.uk but it didn't come up with anything that I hadn't already read.
This is confusing enough but I just picked up my tax accounts from my accountant and he's neglected to enter a $11,000 deduction so my head is spinning trying to get that sorted out as well.
I badly want to move out of Guelph and I'm trying to figure out what I can afford so all these figures are important especially as I have my eye on a house I'm really keen on.
where is the link to opted-out pensions? Is that only if you can see your forecast online? I did a search on gov.uk but it didn't come up with anything that I hadn't already read.
This is confusing enough but I just picked up my tax accounts from my accountant and he's neglected to enter a $11,000 deduction so my head is spinning trying to get that sorted out as well.
I badly want to move out of Guelph and I'm trying to figure out what I can afford so all these figures are important especially as I have my eye on a house I'm really keen on.
#25
limey party pooper
Joined: Jul 2012
Posts: 9,979
Re: Contracted-Out & State Pension
Bats,
where is the link to opted-out pensions? Is that only if you can see your forecast online? I did a search on gov.uk but it didn't come up with anything that I hadn't already read.
This is confusing enough but I just picked up my tax accounts from my accountant and he's neglected to enter a $11,000 deduction so my head is spinning trying to get that sorted out as well.
I badly want to move out of Guelph and I'm trying to figure out what I can afford so all these figures are important especially as I have my eye on a house I'm really keen on.
where is the link to opted-out pensions? Is that only if you can see your forecast online? I did a search on gov.uk but it didn't come up with anything that I hadn't already read.
This is confusing enough but I just picked up my tax accounts from my accountant and he's neglected to enter a $11,000 deduction so my head is spinning trying to get that sorted out as well.
I badly want to move out of Guelph and I'm trying to figure out what I can afford so all these figures are important especially as I have my eye on a house I'm really keen on.
On the pension forecast page scroll down and underneath the forecast and estimate there's some text about the pension. Within this blurb there a highlighted sentence about opting out - thus us a link so click on there and you'll see how much the amount is.
#26
Re: Contracted-Out & State Pension
So say you have a SIPP and it has £1.5 million in it, and you applied for the 2016 protection (which you can still get) then the limit is £1.25 million. So the remaining £250,000 is taxed at 25%. That's before any income tax on a drawdown.
That's robbery imo. No-one would have expected the lifetime allowance to be dropped by such a large amount.
Fortunately I never bothered with a UK pension.
#27
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Joined: Mar 2004
Location: Hamilton, Ontario ex Loughton, Essex
Posts: 412
Re: Contracted-Out & State Pension
Well here it is July 9th and I never did get my pensions forecast. I give up. I'm moving this week and brought over the little funds I had left in the UK (which I was going to use to on the pension) to help pay for the new house. I'll just have to take what I get when the time comes which I'm beginning to think will be about 1/3 of what I thought I was entitled to.
Just a reminder that due to the fact I have a Canadian passport I can not view my details online.
Just a reminder that due to the fact I have a Canadian passport I can not view my details online.