Voluntary redundancies

[pieoftheday]

No offence but I think you're having a laugh with us aren't you? You're telling me you haven't got 35 yrs contributions at 63 yrs old? No way I'd have turned down £24k tax free when I was your age with no debt and how on earth are you spending £300 month on energy bills? I think the ones having a laugh at your expense are the younger more sensible ones who probably couldn't believe their luck at being offered a nice tax free handout and effectively a yr off to look for another job! You are going to go in two yrs and it won't cost RM a penny. Good luck with these last two yrs, you are certainly going to earn it the harder way.

The need to have 35 qualifying years to get the full state pension, only applies to those people who began their working lives after April 2016, and are a solely within the new state pension system.

Everyone else will have qualifying years before 2016 and therefore any periods of being contracted out of the state second pension will be factored into their entitlement. So many people will need more than 35 years.

In practice, the older you are and the longer you've been contracted out, the more you're likely to be affected.

It can be a very individual thing!
From his posts, Daveyeff is about 10 years older than me but with less service. But as of the current tax year, I have the required number of qualifying years for the full state pension.

If in doubt, get yourself a forecast: https://www.gov.uk/check-state-pension

I've just tried to do a forecast, it wouldn't accept my details I dont have a photo driving license or passport so had to use payslip details NI number but nope

[RobertT]

I've just tried to do a forecast, it wouldn't accept my details I dont have a photo driving license or passport so had to use payslip details NI number but nope

I don't have photo driving licence or passport either, and have never had any problems. Although I signed up a few years and it may be different now?

[pieoftheday]

I've just tried to do a forecast, it wouldn't accept my details I dont have a photo driving license or passport so had to use payslip details NI number but nope

I don't have photo driving licence or passport either, and have never had any problems. Although I signed up a few years and it may be different now?

I'll give it another try sometime, although I'm not sure looking at my state pension forecast helps me as it's at least 14 years away and getting farther away as we speak

[Buzzkaz]

I've just tried to do a forecast, it wouldn't accept my details I dont have a photo driving license or passport so had to use payslip details NI number but nope

I don't have photo driving licence or passport either, and have never had any problems. Although I signed up a few years and it may be different now?

I'll give it another try sometime, although I'm not sure looking at my state pension forecast helps me as it's at least 14 years away and getting farther away as we speak

I’m 57 and my forecast says I have paid enough contributions for the state pension, less the amount opted out. However, it says I still have to continue to pay NI contributions towards NHS/benefits until I retire at 67. Would be nice if the more you paid in, the more you get out.

[Tman]

So the poorer paid/less fortunate in society end up with a reduced pension?
Very egalitarian..

[Buzzkaz]

What I meant was it would be nice that if every year that you worked above 35 years and contributed additional NI, that your pension could be uplifted a little.

[RobertT]

I've just tried to do a forecast, it wouldn't accept my details I dont have a photo driving license or passport so had to use payslip details NI number but nope

I don't have photo driving licence or passport either, and have never had any problems. Although I signed up a few years and it may be different now?

I'll give it another try sometime, although I'm not sure looking at my state pension forecast helps me as it's at least 14 years away and getting farther away as we speak

The idea is that you'll be able to see how much you'll be getting and be able to plan for your retirement.
If you know how much you'll get at SPA, you can then potentially use your other pension/s or savings to retire beforehand.

Plus, those that won't have enough qualifying years to get the maximum, could choose to buy missing years.

[RobertT]

I've just tried to do a forecast, it wouldn't accept my details I dont have a photo driving license or passport so had to use payslip details NI number but nope

I don't have photo driving licence or passport either, and have never had any problems. Although I signed up a few years and it may be different now?

I'll give it another try sometime, although I'm not sure looking at my state pension forecast helps me as it's at least 14 years away and getting farther away as we speak

I’m 57 and my forecast says I have paid enough contributions for the state pension, less the amount opted out. However, it says I still have to continue to pay NI contributions towards NHS/benefits until I retire at 67. Would be nice if the more you paid in, the more you get out.

Are you referring to the COPE amount?

If so, that is not taken away from your state pension! It's the element of your workplace pension/s that you earned while being contracted out of the state second pension.
It's included in your pension from RM and any other contracted out pensions you may have.

[Buzzkaz]

I've just tried to do a forecast, it wouldn't accept my details I dont have a photo driving license or passport so had to use payslip details NI number but nope

I don't have photo driving licence or passport either, and have never had any problems. Although I signed up a few years and it may be different now?

I'll give it another try sometime, although I'm not sure looking at my state pension forecast helps me as it's at least 14 years away and getting farther away as we speak

I’m 57 and my forecast says I have paid enough contributions for the state pension, less the amount opted out. However, it says I still have to continue to pay NI contributions towards NHS/benefits until I retire at 67. Would be nice if the more you paid in, the more you get out.

Are you referring to the COPE amount?

If so, that is not taken away from your state pension! It's the element of your workplace pension/s that you earned while being contracted out of the state second pension.
It's included in your pension from RM and any other contracted out pensions you may have.

Yes, the state pension amount forecast is £185.15 wk. Cope amount according to forecast is around £29.15 wk included in any contracted out pension.

[Dexydog]

As I understand it the COPE amount is basically the equivalent of the second state pension?- ie the additional amount you otherwise might have received had you NOT contracted out, either via your employer scheme or privately?
My forecast looks similar to the above amounts.
I have about 65k sat with a well known insurer through contracting out of serps.

[RobertT]

As I understand it the COPE amount is basically the equivalent of the second state pension?- ie the additional amount you otherwise might have received had you NOT contracted out, either via your employer scheme or privately?
My forecast looks similar to the above amounts.
I have about 65k sat with a well known insurer through contracting out of serps.

Some people moan when they see they might not be getting the full state pension rate, because they've been contracted out. They think they've been short changed – that is not true!

The idea of contracting out was that your workplace pension and some personal pensions, would provide at least as much as you would have got via the state second pension.

In a lot of cases, contracting out will actually mean being better off overall, especially as we've been able to increase our state pension entitlement since 2016, when contracting out stopped.

Personally, I'm in my mid 50's and have built up the full rate of state pension, and will benefit from my contracted out(up to 2016) RM pension too. Something that wouldn't have happened if contracting out was still happening, as I'd be limited to the rate of the 'basic state pension', which is currently £141.85 per week, plus a very small amount of S2P/SERPS that I accrued before I joined RM.

[Fannybaws]

Yes, the state pension amount forecast is £185.15 wk.

That's my current forecast as well but will that get reduced due to my private pensions?

[Dexydog]

The other benefit of contarcting out is that you are able to take the built up money in cash.
I'm my case, 65k (plus any growth), is an awful lot of 30 quid a week, even allowing for a bit of tax.

[RobertT]

Yes, the state pension amount forecast is £185.15 wk.

That's my current forecast as well but will that get reduced due to my private pensions?

No.
You get your state pension aswell as your private and workplace pensions.

Although the higher income you have, the more tax you'll pay, just as it is with wages.

[RobertT]

The other benefit of contarcting out is that you are able to take the built up money in cash.
I'm my case, 65k (plus any growth), is an awful lot of 30 quid a week, even allowing for a bit of tax.

If you chose to take it all as cash in one go, that bit of tax would be the best part of £13,500 assuming no other income in the tax year you take it.
Drawing it down over time would be more tax efficient.