Barriej

I contracted out completely until the government decided to end it.
And with 42 years of continuous employment I will get the £185 (or what ever it will be when I get my OAP in 2029).
Ive checked via my Gov gateway account.
Although I was self employed as well as PAYE so lots of my years have extra payments.

bobd22

Yes again I totally agree. As I said the government mainly Duncan Smith lead all to believe the new single tier pension would benefit all as a pension increase. It was only just before it came into being that news of how being contracted out meant you would affect your pension in reality. When I say the occupational pension makes up for what one loses that's the official view not actually mine. I worked out that I lose around £40 per week State Pension for being contracted out the savings I made on NI contributions were something like £5 per month.

bobd22

I don't know about being self employed but I was contracted out for 40 years of 44 years contributions. When I applied for official pension forecasts it always showed that I would get the full pension amount however there was always a comment on the forecast saying it didn't take into account of time contracted out? I actually am on the new single tier pension and get around £144 per week of the £185. You will only know when they actually pay it what you will get.

Joppa

It's too late for you now, but if the forecast says you will get less than the maximum because of contracted out or other reasons (like not having full 35-year contribution record), and you are still under the state retirement age (now at 66 for men and women), you can make voluntary contribution to enhance your pension if you are no longer in work or missing years are more recent. You can contribute either Class 2 for the self-employed and those living abroad, currently at £3.15 a week or Class 3 (£15.85 a week). If you are eligible to pay Class 2, that's obviously a better deal but even Class 3 will still be worthwhile. Each additional qualifying year works out to be an extra £5.29 a week (or £275.08 a year) in State Pension, based on 2022/23 rates. If you lived 20 years, the amount you would get back would be over £5,000 for an initial cost of between £165 and £825. Pension forecast is just that - a forecast of how much you may get using currently available figures, but the final amount will only be confirmed when you actually apply for your pension (usually 4 months before your 66th birthday). But it's a good estimate, which helps you to plan while you still have the time. I paid a few hundred pounds in voluntary contribution to partly offset the loss for being contracted out, and I now get about £20 a week more in pension or over £1,000 a year, for life.

bobd22

Yes I could have paid extra years and maybe should have done but I didn't as I needed initially 30 years which then changed to 35 years and I had contributed already for nearly 44.

bfg69bug

But be aware that there is tax to pay when it's paid out.. from 19% to a maximum 47% depending on the amount of your already taxed income that you have saved up..

missile

Those of who paid into SERPs lost out and might as well have burnt the money we paid in.

bobd22

Not something I paid into but my wife did and when she eventually gets her state pension she will as you say get nothing for the Serps she paid in. Mind being one of the women caught in the change from pension at 60 to 66 her Serps are small fry. I thought though that if the amount accrued under Serps if it means your state pension exceeds the single tier pension amount you should get the extra? So if you have built up maximum Serps you should get something back?

Joppa

Yes, you should not be worse off under the single-tier pension, and anything accrued under SERPS or its successor SSP (state second pension) will be paid on top of anything you are eligible under single-tier pension, for life.

'What if my foundation amount is more than the full single tier?

If your foundation amount is higher than the full level of the single-tier pension you will get the extra amount as a separate protected payment. This will be paid on top of the full single-tier pension. This means that your state pension will not be lower than the state pension you would have got under the current scheme, based on your National Insurance record when single tier starts.'
Single-tier State Pension Fact Sheet (publishing.service.gov.uk)

bobd22

Thanks I knew I had read that somewhere.

Ronnyone

Will folk who have taken residency in Spain after Brexit and are not yet at pensionable age still get their S1 or this only limited to those who were resident before Brexit?

Joppa

UK did a last-minute agreement with EU to continue issuing S1 to state pensioners, i.e. paying for their healthcare costs in EU and UK. So UK state pensioners can continue to request S1 when moving to or are resident in EU. For a couple, if one of them is 66+, their partner can get S1 as beneficiary, which can be upgraded to their own once they hit UK state retirement age.

Jon-Bxl

Quick question. The S1, is it automatically given (to expats) on retirement age... Or does one have to request it please?

If so, what is the protocol for requesting it please?

A form to fill out, a phone call (if you have patience to wait to be connected) or other?

Thanks

Jon

EuroTrash

You have to apply. A phone call is probably the best way to get the ball rolling..
Expats who were living and working in the EU before retirement and have paid social security contributions and accrued pension entitlements in that country, normally remain covered by that country. They're not normally eligible for an S1 from the UK.

bobd22

Heres the details to contact them. I found them helpful and friendly.
NHS Overseas Healthcare Services
Telephone: +44 (0)191 218 1999
Monday to Friday, 8am to 6pm
Saturday, 9am to 3pm