taking royal mail pension

mark.cup · Post by **mark.cup** » 29 Oct 2017, 08:51

Yes that's correct the people who dip out are the ones who don't have enough years left to build it up to the maximum

heapsy · Post by **heapsy** » 29 Oct 2017, 13:51

I checked my record the other day. Full contributions. Only need 6 more years for full sate pension. I started at RM in 1988. I'm 50 now. No idea how they work it out. It does say that I was contracted out on my records.

mark.cup · Post by **mark.cup** » 29 Oct 2017, 14:23

I think like most things pension related they don't want us to understand...

Basically you get a starting amounting from all the years we were opted out and then build a further £4 something a year until you reach the maximum!

So potentially a win win as you have your Royal Mail pension plus a full state pension but some who say only have a couple years left won't have time to get that benefit

Post by **westy23** » 29 Oct 2017, 16:51

There’s a lot to get your head around understanding this qualifying years.
Here’s a question for Robert T
Started with Royal Mail November 1977 and still working as a Mgv driver.
Am in receipt of my nra 60 pension only and my state pension kicks when I am 66 in May 2021.
Can I buy qualifying years ( class 3 I think ) while I am still working and is it worthwhile ?
Thanks

heapsy · Post by **heapsy** » 29 Oct 2017, 17:08

westy23 wrote:There’s a lot to get your head around understanding this qualifying years.
Here’s a question for Robert T
Started with Royal Mail November 1977 and still working as a Mgv driver.
Am in receipt of my nra 60 pension only and my state pension kicks when I am 66 in May 2021.
Can I buy qualifying years ( class 3 I think ) while I am still working and is it worthwhile ?
Thanks

Just read your post. If you haven't already done so, you can find out what your situation is here https://www.gov.uk/check-state-pension" onclick="window.open(this.href);return false;

BeamishStout · Post by **BeamishStout** » 29 Oct 2017, 17:49

westy23 wrote:There’s a lot to get your head around understanding this qualifying years.
Here’s a question for Robert T
Started with Royal Mail November 1977 and still working as a Mgv driver.
Am in receipt of my nra 60 pension only and my state pension kicks when I am 66 in May 2021.
Can I buy qualifying years ( class 3 I think ) while I am still working and is it worthwhile ?
Thanks

It depends.

If you use heapsy's link (you may have to register with the gov gateway if not already done) and it will tell you how many years you have already accumulated and how many more years of potential contributions if you stay in employment till SPA. So in my case it shows that I have 31 full years to date (exc the current tax year) and it will be 32 years by April 2018. IF I stayed in employment with RM I would surpass the 35 years full contributions and gain the maximum state pension. But because I intend retiring in 2018 I will be 3 years shy and would have to make voluntary class 3 contributions at some point between 2018 and my SPA in order to get full state pension @ 66.

Your contribution history will also detail previous years that you could 'top-up'. But as I say it all depends on your circumstances, when you intend retiring and how many years you are shy of the full state pension. Remember though that you cannot pre-pay additional years.

stroller · Post by **stroller** » 29 Oct 2017, 22:07

I checked my NI history a while ago and have 40 years NI contributions, but I am still 6 years short because I was contracted out, I thought I would qualify for my full state pension, I left Royal Mail so I will have to contribute for another 6 years to get my full state pension, I will get £136 if I leave it or pay another 6 years NI to get the full £159 state pension, not sure what to do?

BeamishStout · Post by **BeamishStout** » 29 Oct 2017, 22:29

stroller wrote:I checked my NI history a while ago and have 40 years NI contributions, but I am still 6 years short because I was contracted out, I thought I would qualify for my full state pension, I left Royal Mail so I will have to contribute for another 6 years to get my full state pension, I will get £136 if I leave it or pay another 6 years NI to get the full £159 state pension, not sure what to do?

Just remember that you don't have to make a decision either way right now and theoretically you could leave that decision up to the final year before your SPA if you intend making these contributions via a lump sum payment(s). Or you can set up a weekly payment over these 6 years. I assume you are retired and not 'paying the stamp' through present employment.

stroller · Post by **stroller** » 29 Oct 2017, 22:45

Beamishstout,

Yes I have called it a day took VR in the summer, and don't intend to work again I am 56, I worked it out that if I continue to pay voluntary NI it will give me a full state pension at 67, and would be better off when I hit 71, I hopefully will be comfortable at 71, not being morbid but if I pay voluntary NI for 6 years I will only be 62 whose to say I might not reach 67

BeamishStout · Post by **BeamishStout** » 30 Oct 2017, 06:17

stroller wrote:Beamishstout,

Yes I have called it a day took VR in the summer, and don't intend to work again I am 56, I worked it out that if I continue to pay voluntary NI it will give me a full state pension at 67, and would be better off when I hit 71, I hopefully will be comfortable at 71, not being morbid but if I pay voluntary NI for 6 years I will only be 62 whose to say I might not reach 67

Another option for you is to save the cost of the NI contributions up in the intervening years before SPA and squirrel that money away safely. There is nothing to stop you making a lump sum payment in your 66th year for the previous 6 years. Or you could set up weekly payments direct when you reach 61. Of course contribution rates may increase in these intervening years or the rules may change for these top-ups.

Ultimately your call when and how to pay for your 'missing' years.

stroller · Post by **stroller** » 30 Oct 2017, 07:33

Beamishstout,

Thanks for your replies and info, I will perhaps give them a call and think about where I go from here, but one thing is for sure, a lot of people think they are going to get a full state pension but are in for a shock when they don't.

Post by **RobertT** » 03 Nov 2017, 04:51

Anyone thinking of buying missing qualifying years might find this an interesting read: http://www.thisismoney.co.uk/money/pens ... -trap.html" onclick="window.open(this.href);return false;

BeamishStout · Post by **BeamishStout** » 03 Nov 2017, 06:24

RobertT wrote:Anyone thinking of buying missing qualifying years might find this an interesting read: http://www.thisismoney.co.uk/money/pens ... -trap.html" onclick="window.open(this.href);return false;

And in particular the bit

The key date is April 2016. If you have 30 years of full NI contributions before then and the government decides you would be better off on the old system, there is no point in making extra contributions to cover past years — even if you don't have the full £159.55 a week offered by the new scheme.
They won't boost your pension because the money will be going towards the old scheme rather than the new one.

And a call to DWP might be advisable as well (I have already done this) to confirm what their website is telling you re missing years.