How much will you receive from your Pension?

[WinteryWonderland]

I'm on track for full state pension after checking recently, so that's something. DH is also on track and has a private pension, but we've been advised to up the payments by £500 month 😬 like we have that surplus floating around!
I just wondered what other people have in place and how much that will provide yearly when you retire?

Yep.@CurlyhairedAssassin is completely incorrect.

Ah yes, that would make sense, thankyou.

Re HMRC making mistakes. Yes, I remember receiving letters when I spent a couple of years as a SAHM saying that I hadn't paid enough NI years (about 3 missing) and letting me know how much it would be to top up. As I was claiming child benefit at the time I was really confused as to why I'd need to do that. So confused that I just ignored the issue 😕. Fast foward a few years when I was checking my state pension record online and it had those "missing years" finally there has counting towards my NI years.

I have little faith in HMRC being able to keep up with people's increasingly complex lives. People are living and working longer and switching jobs many times during their working lives, starting second families, getting drawn into the savings interest tax bracket due to higher interest rates. I fail to see how they will getting most things RIGHT actually.

I'm completely incorrect about what? I'm confused about who is replying to what now. 😆

Sorry @CurlyhairedAssassin I may have quoted the wrong poster. Some people on here are saying that contracting out of SERPS affects your basic state pension. It does not.

I'm afraid you're incorrect. The system is very complicated for people whose working life spanned both the old state pension and SERPS, and the introduction of the new state pension. If someone was contracted out of SERPS for long periods of their working life but retired/ retire after April 2016 may well be short of full state pension accrual under the new flat rate state pension scheme. Broadly speaking, this will mainly affect people who were "contracted out" and paying lower NI for long periods under the old system, because obviously it would not be fair for them to have paid lower NI/ had all that money added to their private pension schemes instead by contracting out and then receive the same flat rate state pension as everyone else.

For those retiring before the introduction of the flat rate pension in 2016 then contracting out would only affect SP2 and not the old basic pension.

I do wish people wouldn't give financial advice on social media, indeed.

Well I was contracted out for the whole of the time it was possible to contract out and will still get the full new SP.

It's worth noting that as a transition providion people who did contract out for long periods but retire post-April 2016 have a protection in place where they will receive whichever is higher of what they would have qualified for if the new scheme had been in place throughout their working lives or what they qualify for under the old scheme having contracted out, at least that is the idea of the calculations. However, in some cases the higher of those two figures is still lower than the new flat rate basic pension. Which makes sense because they contributed less tax for many years! In fact the system has been pretty generous to them considering the lower level of contributions.

Well I was contracted out for the whole of the time it was possible to contract out and will still get the full new SP.

You may well be. Is it inconceivable to you that just because the calculation happened to work out like that in your particular case, that this won't be the same for everybody when the earnings, period of contracting out and retirement dates going into their personal calculations are not identical to yours? 🙄 Maybe refrain from telling people they don't know what they are talking about in future if your basis for this assertion is that you've extrapolated your own particular circumstances to apply to everyone. 😆

@IBlinkThereforeIAm “Therefore, for example, someone could have worked for say 40 years but if contracted out for 15 of those, they'd only have 25 years of state pension entitled accrued. “

This is not correct.

Irrespective of whether or not you were contracted out, all the years of full NI before 1 April 2016 count when calculating your starting amount for state pension. However, if you were contracted out for any years a deduction is then applied.

Any additional pension may then be added to this basic pension to give your starting amount for the new state pension. If you were contracted out you may have little or no additional pension.

State pension plus £4K a year private. DH state pension plus £8k a year private. We are late to the private pension party. We are early 50s and weren’t told pensions should be a priority. We earn £110k between us but have a hefty mortgage that isn’t ended til we are 67. It’s gonna be a massive lifestyle change for us and we are probably going to have to get a part time job each well into our 70s ….. I’m telling DS17 pension pension pension!!!

@NeverForgetYourDreams weren't told by whom?

I’ve checked and I will get full state pension

@KimberleyClark that’s good news.