SINGLE OAP PENSION

[mad-dad]

3 hours ago, Cyclone said:

That's not at all correct.

 

https://www.gov.uk/contracted-out

 

If you contracted out then some additional NI payments were not deducted from your pay and your state pension will thus be less.  Savings on PAYE tax from paying into a pension is nothing to do with it, you make this saving whether or not you were contracted out.

More than the maximum amount?

Is that due to 

https://www.nidirect.gov.uk/articles/additional-state-pension

 

The additional bit (none of which applies to people who are on the new pension, ie retiring after April 2016)?

TO Cyclone.

 I haven't a clue what the maximum State Pension is.  All this financial stuff is beyond me, but I have been receiving my  pension at this (inflation related) rate since 2016 (October). Should I be worried? Sorry about QUOTE  mistake.

 

Edited April 14, 2019 by mad-dad

[Jeddo]

2 hours ago, spilldig said:

Our state pension is scandalous. It is the lowest state pension in the civilised  world. The average working week is 40 hours and on our own government's stated MINIMUM, that should work out as £ 328.40 per week for each and every pensioner. If the government won't pay that then they have no right to go quoting any minimum amount.

Well if we didn't have so many scroungers draining the system, the real unfortunates and needy in society would have a decent amount to live oneither on dole or via pensions. There is only so much money in the system.

 

And before anyone suggests taxing the rich even more, don't forget tax is calculated on a percentage basis, so the rich are already paying much more tban tje averagd bear in terms of actual £ and pence paid. Taxing them more means they will retire earlier and close down their businesses, putting folk out of work. Or close up and move to anotber country like they did when Labour were in power.

[Jeddo]

Top ups

 

Top ups to your state pension should be considered in the light of how many years you believe you have left to live. Sounds harsh I know, but when working out the return on the investment you intend to

make i.e the number of qualifying years you intend to make up on your NI  record. Considering that a qualifying year can cost £700 odd plus, per qualifying year (increases each year) it is not a small sum to have to pay all at once, but remember the extra pension you get per week on retirement will be index linked and will therefore increase over time If you live longer too you'll be quids in. Also, with the poor rates of interest these days at bsnks, it might actually be a better investment. i.e better sitting in your NI account to give you a higher index linked future receipt, than sitting in a bank now getting kess than 1%.

 

Also take into account future bank interest rates.

 

I've developed a sliding scale spreadsheet for my own qualifying years top ups so Iknow when to stop.

 

Qualifying years are increasing on a sliding scale now for a full state pension. The clerks don't tell you that when you ring up.  By tbe time a friend of mine retires she will have 44 qualifying years on her NI record. People seem to forget that NI payments cover heath services (doctors/hospital treatment etc) as well as pensions.

[Anna B]

11 hours ago, Annie Bynnol said:

The full amount of £168.50 is only available to those who:

are of pensionable age from April 2016 i.e. currently below 70

and

have full NI class one contributions for 35 years

and

have not 'contracted out' i.e. have never been a teacher, NHS worker, BSC steelworker, NCB miner, council worker, government worker, soldier, firefighter etc. (Check they have counted your contracted in service first if you have 35years+ contributions.)

 

People over 70 will be on the old system but can get an Additional Pension if eligible.

Everyone else will be on a sliding scale- use the link provided by Mike10.

Also, the NI records are can be inaccurate, for example for students who worked or signed on during vac., or maternity leave, temporary jobs, or jury service etc.

 

Women in particular need to know if they, or husband for them, paid the full Class 1 National Insurance particularly if either or both were self employed or if widowed.

 

It is taxable.

I also have full NI contributions for 35 years and as a teacher for some of that time I assume I was contracted out. When i retired I just missed the new rate by a month. I am at least £25 a week short of the £168 new rate. That works out at £1,300 a year (or £26,000 over 20 years) down. I get a small works pension so not entitled to any extra state pension 

[Mossway]

Jeddo,

Thanks for the explanation, but, in your para 4 you say I won’t get the full State Pension.

On the contrary, I seem to get an even higher  State Pension than most, despite, apparently being contracted  out for twenty years. I get over £206 pw, I’m not complaining at all.

[Cyclone]

5 hours ago, spilldig said:

Our state pension is scandalous. It is the lowest state pension in the civilised  world. The average working week is 40 hours and on our own government's stated MINIMUM, that should work out as £ 328.40 per week for each and every pensioner. If the government won't pay that then they have no right to go quoting any minimum amount.

But that's minimum wage for working, not for not working...

[Annie Bynnol]

1 hour ago, Anna B said:

I also have full NI contributions for 35 years and as a teacher for some of that time I assume I was contracted out. When i retired I just missed the new rate by a month. I am at least £25 a week short of the £168 new rate. That works out at £1,300 a year (or £26,000 over 20 years) down. I get a small works pension so not entitled to any extra state pension 

The new £168 only applies to people with 35 years of NI contributions AND have not contracted out at any time AND came into the scheme after April 2016.

Every week you were "contracted out" reduces the amount.

 

You are on the pre May 2016 scheme and so you are getting a lower maximum and the "contracted out" weeks do not count.

Had you been in the new post April 2016 scheme, if you had been in "contracted out" jobs for 35 years e.g. teaching you would also be about £25 a week short of the £168 on the new rate.

So you have not lost out as much as you think. It is a sliding scale.

 

Many people on here who are "more" on the old scheme paid into a State Earnings-Related Pension Scheme (SERPS) from 1978 and from 5 April 2002 the State Second Pension i.e. "contracted in". 

 

 

 

 

 

 

 

[spilldig]

13 hours ago, Cyclone said:

But that's minimum wage for working, not for not working...

Does one person require less to live on than another person ?   To me a minimum is a minimum, or don't start qouting a minimum.

19 hours ago, ANGELFIRE1 said:

As a 69 year old I await my £328.40 pension arriving, but not in my lifetime I suspect. There are too many sucking on the teat of plenty to be able to pay us a decent pension.

 

Angel1.

I suspect you are correct.

[bendix]

20 hours ago, Janus said:

Mossway:

Contracted out is

basically when an employee has paid in to a company pension scheme. They would not have been taxed on the part of their wages that went in to the company scheme. Thus they get  a state pension that is a bit less.

Utter nonsense.
 

Contracting out is when you have literally contracted out.   Paying into a company or private pension scheme is NOT contracting out.

[Cyclone]

7 hours ago, spilldig said:

Does one person require less to live on than another person ?   To me a minimum is a minimum, or don't start qouting a minimum.

I suspect you are correct.

You realise that the minimum wage doesn't somehow guarantee that you can work 40 hours a week though... It guarantees minimum pay for an hours work.  So OAPs should be paid that minimum for every hour that they spend working.  It's totally unrelated to pensions though.