Opted out of pension at some point
Discussion
I was looking at what my state pension might be and it said something like X a week minus £20 which comes from somewhere else when you opted out.
Sorry nowhere near exact wording.
So it's something I did when I was young and dumb, plus I have been freelance or self-employed most of my life, so I have no idea where to start, in order to track this extra money down.
There was one company, I worked full time for, in the early 90s and I have contacted them but they have no record of any opting out.
It does seem that there will be many in a similar position with various companies sitting on unclaimed cash, or have I got this wrong?
Will it be automatically added to my state pension?
Thanks for any advice and help, cheers.
Sorry nowhere near exact wording.
So it's something I did when I was young and dumb, plus I have been freelance or self-employed most of my life, so I have no idea where to start, in order to track this extra money down.
There was one company, I worked full time for, in the early 90s and I have contacted them but they have no record of any opting out.
It does seem that there will be many in a similar position with various companies sitting on unclaimed cash, or have I got this wrong?
Will it be automatically added to my state pension?
Thanks for any advice and help, cheers.
Could it be you opted out of SERPS?
I did the same back in 1995. Had no knowledge whatsoever or recollection of doing it. Meanwhile the government kept putting my tax relief in up until it ended in 2012. When I consolidated my pensions, it triggered something somewhere and Aviva got in touch to tell me I had £25k in a pot I knew nothing about
https://www.ageuk.org.uk/information-advice/money-...
Some pointers on here that may be able to help
I did the same back in 1995. Had no knowledge whatsoever or recollection of doing it. Meanwhile the government kept putting my tax relief in up until it ended in 2012. When I consolidated my pensions, it triggered something somewhere and Aviva got in touch to tell me I had £25k in a pot I knew nothing about
https://www.ageuk.org.uk/information-advice/money-...
Some pointers on here that may be able to help
If you contracted out of SERPS that money automatically was paid into a private pension until the scheme ended a few years ago.
Even if you moved jobs, it continued to be paid in.
Do you not have any private pension documents?
There is a tracing service to help find it.
https://www.gov.uk/find-pension-contact-details
The only payment from this money comes from the private pension.
Even if you moved jobs, it continued to be paid in.
Do you not have any private pension documents?
There is a tracing service to help find it.
https://www.gov.uk/find-pension-contact-details
The only payment from this money comes from the private pension.
Do you have a final salary pension?
I’ve a few and I too noted the “contracted out” meaning I’ve a similar COPE value which is deducted from what the govt will pay me on retirement. The point being when I was in those schemes my NI contributions must have been lower & /or that I’m getting that COPE within the final salary pension.
It’s annoying that you cannot buy the COPE missing years as I’d prefer to clear full 35 years and have no missing values / or that I’ve paid them up. That way come retirement the value of new state pension is the value I will receive from HMRC.
But I think that is first world problems.
If you’ve missing years and don’t think you’ll clear the 35 years it might be sensible to pay for them to buy them while you can.
I’ve a few and I too noted the “contracted out” meaning I’ve a similar COPE value which is deducted from what the govt will pay me on retirement. The point being when I was in those schemes my NI contributions must have been lower & /or that I’m getting that COPE within the final salary pension.
It’s annoying that you cannot buy the COPE missing years as I’d prefer to clear full 35 years and have no missing values / or that I’ve paid them up. That way come retirement the value of new state pension is the value I will receive from HMRC.
But I think that is first world problems.
If you’ve missing years and don’t think you’ll clear the 35 years it might be sensible to pay for them to buy them while you can.
Thanks for all the replies.
I'm very close to 35 years of full NI paid but if I read it correctly it would seem I still lose money off my state pension regardless due to opting out.
I just wish I could remember who I was with when this happened.
It's only £20 or so but as my private pension will be worth pants, every penny is going to have to count if I get to the point where I can no longer work.
No retirement for me sadly.
I'm very close to 35 years of full NI paid but if I read it correctly it would seem I still lose money off my state pension regardless due to opting out.
I just wish I could remember who I was with when this happened.
It's only £20 or so but as my private pension will be worth pants, every penny is going to have to count if I get to the point where I can no longer work.
No retirement for me sadly.
Assuming you have a personal pension rather than a company sponsored pension, it would have been your decision whether to fully participate in the State pension system or opt out of part of it. Obviously after thinking about it, you opted out. This means that you have a lower State pension and you pay lower NI contributions.
Here you are years later having enjoyed the lower NI contributions and the consequence is a lower State pension.
What's not to like? You cannot have lower cost and no pension reduction, that's for sure!
R.
Here you are years later having enjoyed the lower NI contributions and the consequence is a lower State pension.
What's not to like? You cannot have lower cost and no pension reduction, that's for sure!
R.
The Leaper said:
Assuming you have a personal pension rather than a company sponsored pension, it would have been your decision whether to fully participate in the State pension system or opt out of part of it. Obviously after thinking about it, you opted out. This means that you have a lower State pension and you pay lower NI contributions.
Here you are years later having enjoyed the lower NI contributions and the consequence is a lower State pension.
What's not to like? You cannot have lower cost and no pension reduction, that's for sure!
R.
He knows, he is looking for help to find where the money went that will compensate for that decision.Here you are years later having enjoyed the lower NI contributions and the consequence is a lower State pension.
What's not to like? You cannot have lower cost and no pension reduction, that's for sure!
R.
It's also worth finding out for his family or dependants, because that money gets paid to his estate, unlike the state pension, which dies with him.
You can get free help here for searching for a lost pension:
https://moneyandpensionsservice.org.uk/
R.
https://moneyandpensionsservice.org.uk/
R.
Those with COPE amounts are usually the lucky ones. It means some of your NIC went into private pension and they often have GMP that revalues at a spectacular fixed rate up to age 60/65.
Although you'll then need more than 35 years of NIC to offset the contracting out you can normally pay enough to still have the maximum flat rate state pension, either naturally through working or voluntary NIC.
Anyone who works more than 35 years now will just have the maximum flat rate and anything more adds nothing further to the state pension.
Although you'll then need more than 35 years of NIC to offset the contracting out you can normally pay enough to still have the maximum flat rate state pension, either naturally through working or voluntary NIC.
Anyone who works more than 35 years now will just have the maximum flat rate and anything more adds nothing further to the state pension.
The Leaper said:
You can get free help here for searching for a lost pension:
https://moneyandpensionsservice.org.uk/
R.
Thanks for that, cheers.https://moneyandpensionsservice.org.uk/
R.
Interesting thread.
I checked my state pension a few months back and I’ve got full allowance as I’ve worked the 35 yrs with NIC’s .
My wife however worked less than 20 years and yet she also has maximum state pension so I’m not exactly sure how she’s achieved this.
I can’t remember that far back to the late 80’s early 90’a when there was all this ‘contracting out of SERPS’ stuff but she seems to think this has something to do with it.
I’m probably talking total Mumbo Jumbo but I’m not sure how’s she’s reached the max
I checked my state pension a few months back and I’ve got full allowance as I’ve worked the 35 yrs with NIC’s .
My wife however worked less than 20 years and yet she also has maximum state pension so I’m not exactly sure how she’s achieved this.
I can’t remember that far back to the late 80’s early 90’a when there was all this ‘contracting out of SERPS’ stuff but she seems to think this has something to do with it.
I’m probably talking total Mumbo Jumbo but I’m not sure how’s she’s reached the max
You dont have to work to get your NI credits.
Claim unemployment benefit or be a student enrolled officially and you are credited.
Claiming child benefit for a child under 12, or being a carer also gives you NI credits.
SERPS is a different thing entirely.
Claim unemployment benefit or be a student enrolled officially and you are credited.
Claiming child benefit for a child under 12, or being a carer also gives you NI credits.
SERPS is a different thing entirely.
Edited by anonymous-user on Thursday 23 June 11:48
jsf said:
You dont have to work to get your NI credits.
Claim unemployment benefit or be a student enrolled officially and you are credited.
SERPS is a different thing entirely.
That’s the thing she’s never claimed benefits or been a student so I’m a little miffed plus she contracted out when she was working Claim unemployment benefit or be a student enrolled officially and you are credited.
SERPS is a different thing entirely.
GT3Manthey said:
Interesting thread.
My wife however worked less than 20 years and yet she also has maximum state pension so I’m not exactly sure how she’s achieved this.
I can’t remember that far back to the late 80’s early 90’a when there was all this ‘contracting out of SERPS’ stuff but she seems to think this has something to do with it.
I’m probably talking total Mumbo Jumbo but I’m not sure how’s she’s reached the max
Couple of things:My wife however worked less than 20 years and yet she also has maximum state pension so I’m not exactly sure how she’s achieved this.
I can’t remember that far back to the late 80’s early 90’a when there was all this ‘contracting out of SERPS’ stuff but she seems to think this has something to do with it.
I’m probably talking total Mumbo Jumbo but I’m not sure how’s she’s reached the max
- Has she really? The big green box is a projection of what you could get. What you have actually accrued to date is in smaller wording below and may state that you need X more years of NIC to reach said projection.
- If she has an amount that's at least £185.15pw then it's possible with decent earnings that she accrued that much between the basic and additional state pension to have an amount that is now the same or more than the flat rate which came in from 2016.
You used to need 30 years for the full basic state pension, with additional (SERPS etc) on top. Now you need 35 years to get the maximum flat rate.
Was reading a state pension price recently and the stats showed that roughly women retired with 25% of full state pension whereas men retired with 75% of full state pension.
It simply isn’t fair or right it is.
As much as it would be costly to deliver I think all should be entitled to full new state pension regardless of qualifying years.
The young may complain but they too will get that benefit when they retire.
It simply isn’t fair or right it is.
As much as it would be costly to deliver I think all should be entitled to full new state pension regardless of qualifying years.
The young may complain but they too will get that benefit when they retire.
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