GMP

[fly-catchers]

When we were contracted out of the second State Pension and paid a reduced NI there was also a period of GMP Guaranteed Minimum Pension. Where you would not lose out by not getting a full or any second state pension. But I never understand where this benefit would occur as at that time you pension was based on your salary and the number of years worked. Or is there an extra amount of pension paid at some point? Wishful thinking!!

[RobertT]

The GMP represents a minimum amount of pension that RM have to provide, it isn’t an extra amount but forms part of our basic entitlement based on salary and length of service.

Since the introduction of the ‘new state pension’ in 2016, a figure is taken off our SP entitlement to make up for the amount of contracted out benefits we’re getting from the RMPP, or any other contracted out pension you may have. This is known as the Contracted Out Pension Equivalent(COPE) amount.

Although anyone who is still working post April 2016 can still potentially build up their state pension up to the current full rate of £159.55, and make up for what they lose out with COPE. Giving them the best of both worlds!
It’s also possible to purchase NI qualifying years you’ve missed.

Which is why it’s always a good idea to get a state pension forecast well in advance of your actual state pension age.

[cloherty1976]

Just lost another £8000 gone as the government have raised the age by another year.Think it's time we look for other ways of funding our retirement as it looks to me pensions are getting very hard to fund and the way things are going it's only going to get worse.