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New query

SPURLEY
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New query

#429625

Postby SPURLEY » July 22nd, 2021, 12:58 pm

Hello I was laid off from work at the end of November 2018 , and decided then to finish work completely . I have not claimed any benefits . I am living on savings and a small DB pension . I checked my SP forecast on 23/4/2019 and it was £178.14 . I have 44 years NI contributions . I checked my forecast the following year -- 5/5 /2020 and this time it was £184.91 . This year I checked it again on 22/04/2021 and it is now at £189.36 . I was contracted out for around 20 - 25 years -- not sure how many . I am not sure whether to believe these forecasts . Can anyone give me an idea if the value will be reduced because I am not working anymore , even though it says on the forecast that the figure is the most I can get and also that I cant improve on it .

mc2fool
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Re: New query

#429738

Postby mc2fool » July 22nd, 2021, 6:27 pm

270160 wrote:Hello I was laid off from work at the end of November 2018 , and decided then to finish work completely . I have not claimed any benefits . I am living on savings and a small DB pension . I checked my SP forecast on 23/4/2019 and it was £178.14 . I have 44 years NI contributions . I checked my forecast the following year -- 5/5 /2020 and this time it was £184.91 . This year I checked it again on 22/04/2021 and it is now at £189.36 . I was contracted out for around 20 - 25 years -- not sure how many . I am not sure whether to believe these forecasts . Can anyone give me an idea if the value will be reduced because I am not working anymore , even though it says on the forecast that the figure is the most I can get and also that I cant improve on it .

It will certainly not be reduced because you're not working anymore, the state pension is based on the contributions you made and you not working anymore doesn't affect those at all.

There may be a small reduction (or, indeed, increase) when they reconcile your Contracted Out Deduction (COD) with the Guaranteed Minimum Pension (GMP) provided by the scheme(s) you were contracted out to, but it will be small and any difference will, in theory, be because it is being made up by the contracted out scheme ... or at least would have been in 2016 when your starting amount will be calculated back to.

Figuring out GMPs/CODs is a hair-tearing-out exercise in the first place, and figuring out the actual end effect of the transition rules on them going forward is not to be attempted by mere mortals!

SPURLEY
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Re: New query

#429760

Postby SPURLEY » July 22nd, 2021, 8:26 pm

Thank you Mc 2fool for your reply . I was in the DB pension for about 16 years before the firm I worked for was sold and the first thing the new one did was to get rid of it . I left mine where it was, and I am so so glad I did . All my next employers schemes were DC pensions and I believe for several years we were contracted out . I have been asking for a SP forecast every year now for about 18 years . -- BR19 paper form all those years ago. I now have 4 DC pensions with a total value of around 105k and sometimes wonder whether to put them all together in a SIPP . I certainly will not be taking them as pensions .

monabri
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Re: New query

#429761

Postby monabri » July 22nd, 2021, 8:31 pm

270160 wrote: Can anyone give me an idea if the value will be reduced because I am not working anymore , even though it says on the forecast that the figure is the most I can get and also that I cant improve on it .


No.


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