How to check your NI contributions & Pension entitlement in the UK

[margaretcarnes]

So within 10 minutes or so I have discovered at age 66 I will currently be entitled to £120.03 per week out of a maximum of £155.65 state pension and I have paid 31 years of full contributions.
Saves a lot of time with letters and phone calls to verify your situation.

Thinking about it, I'm confused (nothing new there then). My entitlement will be slightly less than you, but my summary states I've paid in more i.e.:
Conts.png
Any idea how that works?

Any years during which you may have been 'contracted out' - ie due to being in certain occupational pensions (eg Civil Service, Forces) are likely to reduce what would have been your new 'minimum'.
The years between which your contracted out conts are used for this are specified but I can't remember them exactly, but if you are affected by this rule your pension calculation will been made using 2 separate formulas.

[Big Boy]

Well, I don't know what contracted out means, but I was a Civil Servant all of my working life.

Seems strange that a Government dept would mess with their employee's pension payments to give less benefit - saving the taxpayer money I guess. It's money that I've never planned on, so never mind.

[HHTel]

You used to be able to 'contract out' of SERPS in favour of an occupational pension scheme. This meant that you paid less NI and the government paid into your other pension instead.
When I reached pensionable age, I was sent a breakdown of my pension. Most of them were pluses except the line stating 'contracted out' which was a minus. In my case, contracted out reduced my state pension by just under ten quid a week.

[ahandpatsy]

The idea about contracting out is that a proportion of your pension contributions were redirected to personal (not occupational) scheme

Although your state pension would be reduced the value of your personal pension would (should) more than make up for it.

In the main it did and with the new pension rules it appears even better.

Although for the last 15 years with low growth and low inflation as advisers we suggested people opt back in.

The contracting out scenario has been around since mid eighties and I have clients with over £100,000 in their pension pots from doing this. This should give them a £6000 a year annuity if they went down that route (not a good idea imho).
It worked for a lot of people but not all liked the risk involved.

[HHTel]

Not sure if anyone has said but it should be noted that the 'contracted out' scheme ended. Anyone contracted out will be 'contracted back in' as of April this year.

[margaretcarnes]

Not sure if anyone has said but it should be noted that the 'contracted out' scheme ended. Anyone contracted out will be 'contracted back in' as of April this year.

HHTel is absolutely right there. And having now found my guide on the new scheme there's 2 more points maybe relevant to this discussion,

First - for those not yet state pension age, but who have already accrued the 35 years if NI contributions, buying extra (AVCs) wouldn't increase their pension entitlement.

Second - the new rules also do away with that system of 'topping up' based on a spouses NI contributions.

[buksida]

Anyone figured out how to contact them regarding the possibility of topping it up?

[PJG]

Buksida
Call the Pension Service on the no. given on the web site. The wait for the phone to be answered was about 5 minutes, I found them very helpful.

[STEVE G]

Anyone figured out how to contact them regarding the possibility of topping it up?

This pretty much explains the process:
https://www.gov.uk/government/publicati ... broad-ni38

[Khundon1975]

I had a letter through the door over a few weeks ago from the State pension people in UK, regarding my State pension.

They were advising me to get in touch regarding my pension forecast, as I apparently reach state pension age at my next birthday. Included in with the letter, was an explanatory booklet on pension changes ETC, which, to be honest, I had not given any thought to, as I have a very good, gold plated pension from my last employer, so I filed it under NFA, but my wife dug it out of that file and perused it.

She then got me to phone them, which I did and according to them, I am due a weekly pension of £206.45p per week. I thought that the max was around £150pw, but they confirmed that I was to be paid the higher amount, as I was better off being paid under "the old system" than under the new one! They lost me on that one!
It seems I have 47 years of full contributions, so get a higher pension.

Any way, I won't be seeing any of it, as the wife said "you don't need it", so it's going into our child's savings account.

Oh well, easy come, easy go.

Not sure if these higher pension payments apply to those UK expats in Thailand, but can't see why they shouldn't.

[HHTel]

I'm 5 years past my state pension age and I still lived in Thailand at the time. I receive around the same as you but has been frozen as I live here. I too was surprised but they sent me a breakdown which included superannuation, serps, graduated contributions etc. It would have been a tenner more if I hadn't 'opted out' for some years.

[Khundon1975]

HHTel seems that we were among the lucky ones.

I dread to think what the State Pension Scheme will look like in 20-30 years time, if one even exists then.

One thing we will instil in our child is, get a very good degree and a good job (both of which we can't help him with) and to save everything he can. After all, he could live 30 years into retirement, like many are these days.

[HHTel]

I wouldn't say we are 'lucky'. The only benefit we get is the state pension (providing you've paid enough) and that is frozen as well as being 20% less in value. Even then, the proposal on the back burner is to cut tax relief to zero. Living back in the UK, we would be entitled to a whole raft of benefits - NHS, pension increases, cold weather allowances, pension credits, housing allowance to name a few.
I was just surprised to find my state pension was around double the basic pension.
Having said that, I still prefer to live here than back in blighty.

[margaretcarnes]

I had a letter through the door over a few weeks ago from the State pension people in UK, regarding my State pension.

They were advising me to get in touch regarding my pension forecast, as I apparently reach state pension age at my next birthday. Included in with the letter, was an explanatory booklet on pension changes ETC, which, to be honest, I had not given any thought to, as I have a very good, gold plated pension from my last employer, so I filed it under NFA, but my wife dug it out of that file and perused it.

She then got me to phone them, which I did and according to them, I am due a weekly pension of £206.45p per week. I thought that the max was around £150pw, but they confirmed that I was to be paid the higher amount, as I was better off being paid under "the old system" than under the new one! They lost me on that one!
It seems I have 47 years of full contributions, so get a higher pension.

Any way, I won't be seeing any of it, as the wife said "you don't need it", so it's going into our child's savings account.

Oh well, easy come, easy go.

Not sure if these higher pension payments apply to those UK expats in Thailand, but can't see why they shouldn't.

The new 'higher' state pension is a misleading con really. The 150 plus rate is the new MINIMUM pension. It doesn't apply to people who were already on their pension before the change, who don't get topped up to the new minimum.
It also takes many people over the limit for being able to claim any Pension Credit top up which is means tested, and that has knock on effects on other help with rent etc.
You are fortunate to have so many years of NI conts, which has increased your pension more than most. Unfortunately that extra will count towards tax when added to other pensions.

Overall you can bet your life that the government won't be losing out on this.

[Khundon1975]

Hi Mags

Just Googled Pension Credit and there is no way I would be eligible for Pension Credit, based on my pensions, savings, property, ETC.

Also, I don't have to worry about paying rent, but I do pay a lot of Council Tax, so that just leaves the downside of paying extra income tax.

They get you coming and going, don't they!