State Pension

[stevewool]

I am just trying to work out if its a good idea to try to get Ems a state pension, I have looked into the govt, website and its so hard and confusing, and once you get so far it says you must call.

So I am asking for any advice on here.

Ems has been working and paying Nat Insurance for just over 4 and a bit years, and we may stay for another 2 and a bit, so all in all she may have 7 years paid in. Now I have read that she will need 10 years, but on another site it says 15 years.

Can we pay in for the years she is not here just to make either the 10 or 15 and is it worth it? Is it better saving the money in the bank?

Remember Ems may never come back to England, but if there is something for her and she is entitled to it well it may be worth it.

Ems is the sort of person who is not bothered about this so that could be a problem in the future too if I am not around.

Thanks for reading and a BIGGER thankyou if you reply too.

[Harry T]

Firstly I am not 100% sure on this one Steve, as I contracted out of SERPS and then was advised I would be better off going back in. This left me with a small private pension in addition to my State Pension, I am having a bit of fun with this private pot, which goes up and down like a Fiddlers elbow (I chose the more risky Investment route), but I chose a SIPP which means Self Invested Private Pension, or in other words I choose what funds to Invest this pot in, this is slightly different to leaving it with a Life Insurance Company who would invest it in Funds of there choice, so they may still rise or fall but at a slower rate ( they tend to choose the more safer Funds) which either gain less, but also lose less on a downturn.

As I said earlier Steve, I have no idea about the State Pension contributions, but be careful as Governments can move the goal posts, and seem to be advising people these days, to take out private pensions, which may be advisable in Em's case.

[Terpe]

Steve, anyone who has paid National Insurance Contributions, or received National Insurance credits will be eligible in some way for the UK state pension.

The pension is changing next April.
To be eligible there must be 10 years of NI contributions minimum. Voluntary Contributions can still be made to either make up the 10 year eligibility or indeed to provide the full amount of required contributions. This can be done even if living overseas.

You need 35 years of contributions to get the full pension
10 years is the qualifying starting point minimum.
You'll get a proportion for the years between 10 and 35

There's plenty of nitty-gritty but in principle the above is the key.

If you move over here you'll still be able to make voluntary contributions for as long as you want.

The 10 years minimum does not need to be 10 years in a row, just a total of 10 years.

No idea about future eligibility age

[fred]

Yes Peter..That's what my Mrs does..Think she nearly has 25 years of contributions now.
Me?? Not nearly so much!! :icon_lol:
Oh the life of a poor pensioner stuck in the R.P! :doh
Only another 15 years and I might end up being one! :wink:

[stevewool]

Thank you for your quick response, lots more to look at but its all a little clear

[Michael Parnham]

Firstly I am not 100% sure on this one Steve, as I contracted out of SERPS and then was advised I would be better off going back in. This left me with a small private pension in addition to my State Pension, I am having a bit of fun with this private pot, which goes up and down like a Fiddlers elbow (I chose the more risky Investment route), but I chose a SIPP which means Self Invested Private Pension, or in other words I choose what funds to Invest this pot in, this is slightly different to leaving it with a Life Insurance Company who would invest it in Funds of there choice, so they may still rise or fall but at a slower rate ( they tend to choose the more safer Funds) which either gain less, but also lose less on a downturn.

As I said earlier Steve, I have no idea about the State Pension contributions, but be careful as Governments can move the goal posts, and seem to be advising people these days, to take out private pensions, which may be advisable in Em's case.

I contracted out and now when the new system starts I will lose £30 per month Harry :Erm:

[Harry T]

Thanks for that Michael, so again it seems those that thought they would be better off by contracting out, will indeed not be any better off, indeed they could be worse off :doh

As i said earlier i am having fun in following my own choice of Investments, when the Greek crisis was on i think my Investments had shrunk so that i was losing about £51 overall on what i had invested :censored: Now my Investments have shot back up to what they were at pre Crisis levels :xxgrinning--00xx3: Actually i should have used the crisis to have invested more as so far i have only used just under 50% of my funds, the rest are sitting their earning very little in the way of Interest, so bring on the next financial crisis so that i can purchase some more Unit/Investment Trusts.
This Pension pot was something i was not aware that i had until some 9 months ago, so i am taking the view that its worthwhile Investing in the more Bold Unit Trusts rather than in the more Conservative Unit Trusts, and anyone can begin a SIPP (Self Invested Personal Pension) from as little as £25 per month. To those who think this is not worthwhile may i say how do you think your present Pension pot accumulates over the years ? its by Investing in Stocks/Shares/Property which hopefully will increase in value over the years, but as with my SIPP it could well lose its value, can you remember the great endowment sales of the 80, and 90,s ? well those were the same as a SIPP. :biggrin:

[Terpe]

I contracted out and now when the new system starts I will lose £30 per month Harry :Erm:

Michael, like me, you're not eligible for the new 'flat rate' state pension based on your date of birth and date of reaching state pension age.

Can you please explain how you think you will lose £30 per month from your existing state pension?

[fred]

Thanks for that Michael, so again it seems those that thought they would be better off by contracting out, will indeed not be any better off, indeed they could be worse off :doh

As i said earlier i am having fun in following my own choice of Investments, when the Greek crisis was on i think my Investments had shrunk so that i was losing about £51 overall on what i had invested :censored: Now my Investments have shot back up to what they were at pre Crisis levels :xxgrinning--00xx3: Actually i should have used the crisis to have invested more as so far i have only used just under 50% of my funds, the rest are sitting their earning very little in the way of Interest, so bring on the next financial crisis so that i can purchase some more Unit/Investment Trusts.
This Pension pot was something i was not aware that i had until some 9 months ago, so i am taking the view that its worthwhile Investing in the more Bold Unit Trusts rather than in the more Conservative Unit Trusts, and anyone can begin a SIPP (Self Invested Personal Pension) from as little as £25 per month. To those who think this is not worthwhile may i say how do you think your present Pension pot accumulates over the years ? its by Investing in Stocks/Shares/Property which hopefully will increase in value over the years, but as with my SIPP it could well lose its value, can you remember the great endowment sales of the 80, and 90,s ? well those were the same as a SIPP. :biggrin:

The problem with wishing for another Financial downturn when you are responsible for buying and selling stock is if you fail to read the signs and don't sell in time,everything in your SIPP account, can be wiped out.
These cycles often happen very very quickly and take too long to recover.. Your original investment for a pension pot plan could be pie in the sky IMO.
I reckon its probably far better to search out a well respected stock broker that can advise you about buying/selling or holding the stuff in your SIPP..
I used to play around with short selling once..(betting on a share price going down) The bit I liked was you could set a "stop loss" which was automatically triggered as a stock goes up. This limited the loss to acceptable levels whilst allowing unlimited gains should the price drop.. Set a new stop loss and take profit!
This type of thing really needs to be done by a trading expert with his finger on the pulse 24 hours a day..

[Harry T]

Thanks for the advice Fred, yes Im aware of short selling, and the kind where you can bet on the market rising or falling, and include a stop, as you say that really needs someone with their finger on the pulse 24 hours a day.

its difficult to explain what im doing, Im actually buying into Trust and Investment Funds, not buying individual Shares of a company. These Trust/Investment Funds have already Invested in Companies through the manager (Stock Broker) of the Funds, what i like is that you can choose what particular sector/country to invest in as an example Banks,Real Estate,Technology,Oil &Gas, Pharmaceuticals,Transport etc etc, now this is what Im doing choosing the sector and countries through my choice of Funds, some are regarded as safe and steady, whilst some are regarded as somewhat more of a risk. What all of them do advise is that they need to be regarded as a long term proposition which is perfectly true for most Pension/Endowment Funds. I hope this is a clearer explanation of what Im trying to do.

[Michael Parnham]

I am just trying to work out if its a good idea to try to get Ems a state pension, I have looked into the govt, website and its so hard and confusing, and once you get so far it says you must call.

So I am asking for any advice on here.

Ems has been working and paying Nat Insurance for just over 4 and a bit years, and we may stay for another 2 and a bit, so all in all she may have 7 years paid in. Now I have read that she will need 10 years, but on another site it says 15 years.

Can we pay in for the years she is not here just to make either the 10 or 15 and is it worth it? Is it better saving the money in the bank?

Remember Ems may never come back to England, but if there is something for her and she is entitled to it well it may be worth it.

Ems is the sort of person who is not bothered about this so that could be a problem in the future too if I am not around.

Thanks for reading and a BIGGER thankyou if you reply too.

Ten years Steve:xxgrinning--00xx3:

[Michael Parnham]

Michael, like me, you're not eligible for the new 'flat rate' state pension based on your date of birth and date of reaching state pension age.

Can you please explain how you think you will lose £30 per month from your existing state pension?

I'm sure I have seen it on the DWP website Harry! :Erm:

[stevewool]

With the government giving the public more greater power to do what they want and to put it where they want with there private pension its more important to try to get it right,
For many of us we dont have any idea where the best place could be, thats why you must seek help, yes it may cost you a few hundred quid but it could be the best few hundred that you could spend too,
My private pension is not that much after a Divorce but its still going to be part of my great plan and so far i am happy with what is happening with it,

[Michael Parnham]

With the government giving the public more greater power to do what they want and to put it where they want with there private pension its more important to try to get it right,
For many of us we dont have any idea where the best place could be, thats why you must seek help, yes it may cost you a few hundred quid but it could be the best few hundred that you could spend too,
My private pension is not that much after a Divorce but its still going to be part of my great plan and so far i am happy with what is happening with it,

The NHS pension is good, total 11% with NHS contribution :xxgrinning--00xx3:

[stevewool]

Yes it is Michael, that is why Ems pays in as much as she can from day one, hopefully that will be a extra income for her one day

[fred]

Thanks for the advice Fred, yes Im aware of short selling, and the kind where you can bet on the market rising or falling, and include a stop, as you say that really needs someone with their finger on the pulse 24 hours a day.

its difficult to explain what im doing, Im actually buying into Trust and Investment Funds, not buying individual Shares of a company. These Trust/Investment Funds have already Invested in Companies through the manager (Stock Broker) of the Funds, what i like is that you can choose what particular sector/country to invest in as an example Banks,Real Estate,Technology,Oil &Gas, Pharmaceuticals,Transport etc etc, now this is what Im doing choosing the sector and countries through my choice of Funds, some are regarded as safe and steady, whilst some are regarded as somewhat more of a risk. What all of them do advise is that they need to be regarded as a long term proposition which is perfectly true for most Pension/Endowment Funds. I hope this is a clearer explanation of what Im trying to do.

No advise intended Harry..Just thought it best to clarify for those reading about how best to plan for their future retirement.. Sounds like you have it covered and I wish you the very best of luck!

[Terpe]

I'm sure I have seen it on the DWP website Harry! :Erm:

Michael, you are not eligible for the new flat rate pension that comes into force April 2016
You will not lose £30 per month from you pension

[stevewool]

A long time till my state pension kicks in, over 9 years still, so if i am to finish work long before then i need to have a win on the lotto or go back to Steve's plan 1.7-55.2, which is to save save and Save some more, i am still on target for this :xxgrinning--00xx3:

[Michael Parnham]

Michael, you are not eligible for the new flat rate pension that comes into force April 2016
You will not lose £30 per month from you pension

Oh, thank you Peter, you've put my mind at rest :xxgrinning--00xx3:

[stevewool]

Sent off my letter to the Pension people asking for a forecast what i may or may not have once i retire,
That will give me a better understanding on when, if and how much more i may have need to enjoy my days ,
I will keep you all posted,

[grahamw48]

Thanks for the reminder Steve...I too need to do this, to find out just how much on my Rs I'm going to be next year. :cwm3:

[Terpe]

I shall need to submit my state pension claim very soon :Jump:

[grahamw48]

I shall need to submit my state pension claim very soon :Jump:

Of course ...another old bugger. :olddude: :icon_lol:

[stevewool]

Will we all be richer in cash do you think :biggrin:

[Arthur Little]

A long time till my state pension kicks in, over 9 years still:

Lucky me :olddude: ... I've been receiving mine for almost 6 years now!

[stevewool]

Lucky me :olddude: ... I've been receiving mine for almost 6 years now!

So are you rich then Arthur :yikes:

[Michael Parnham]

Lucky me :olddude: ... I've been receiving mine for almost 6 years now!

Nine years for me Arthur:xxgrinning--00xx3:

[Harry T]

Yeah, i have recently asked them for my contributions record, so that i can see what i am entitled to in a couple of years time. Last week i received a letter from DWP saying that my Pension Credit was being reduced by a third from January 2016, due to the fact i am entitled to a works/private Pension from that date, NOT true.
I have a Pension pot similar to many others on here, which i always intended to take when i am 65, if the DWP continue to reduce my Pension Credit because of this so called works/private pension thereby forcing me to take activate buy an Annuity NOW I will put my stubborn hat on and take out ALL of this Pot NOW and have a few years living off this before i get my State Pension. I dont care what others may think i built up this Pension Pot to be in addition to MY state Pension, not in place of, I am well Pissed Off right now, and have communicated some of what i have said on here to the DWP, indicating that NO i dont have a private Pension right now, I await there reply with interest. :NoNo:

[grahamw48]

No doubt all the 'Financial Adviser' Hyenas will be waiting to get hold of your money too. :cwm25:

[stevewool]

Yeah, i have recently asked them for my contributions record, so that i can see what i am entitled to in a couple of years time. Last week i received a letter from DWP saying that my Pension Credit was being reduced by a third from January 2016, due to the fact i am entitled to a works/private Pension from that date, NOT true.
I have a Pension pot similar to many others on here, which i always intended to take when i am 65, if the DWP continue to reduce my Pension Credit because of this so called works/private pension thereby forcing me to take activate buy an Annuity NOW I will put my stubborn hat on and take out ALL of this Pot NOW and have a few years living off this before i get my State Pension. I dont care what others may think i built up this Pension Pot to be in addition to MY state Pension, not in place of, I am well Pissed Off right now, and have communicated some of what i have said on here to the DWP, indicating that NO i dont have a private Pension right now, I await there reply with interest. :NoNo:

Harry how can they do this if its a private pension you are paying into,

[Michael Parnham]

What is Pension credit?:Erm:

[grahamw48]

What is Pension credit?:Erm:

It's an income top-up for those over 60 and on low income...for whatever reason.

https://www.gov.uk/pension-credit/overview

[Harry T]

Harry how can they do this if its a private pension you are paying into,

Thats what Im upset about Steve, seems they are trying to make me buy an annuity now.

[Harry T]

Yeah, i have recently asked them for my contributions record, so that i can see what i am entitled to in a couple of years time. Last week i received a letter from DWP saying that my Pension Credit was being reduced by a third from January 2016, due to the fact i am entitled to a works/private Pension from that date, NOT true.
I have a Pension pot similar to many others on here, which i always intended to take when i am 65, if the DWP continue to reduce my Pension Credit because of this so called works/private pension thereby forcing me to take activate buy an Annuity NOW I will put my stubborn hat on and take out ALL of this Pot NOW and have a few years living off this before i get my State Pension. I dont care what others may think i built up this Pension Pot to be in addition to MY state Pension, not in place of, I am well Pissed Off right now, and have communicated some of what i have said on here to the DWP, indicating that NO i dont have a private Pension right now, I await there reply with interest. :NoNo:

I have just this minute received a phone call from The DWP, this what they have decided, They WILL reduce my Pension Credit from around £150 per week to about £110 per week from January 2016, This is because i have a Pension Pot which i am able to purchase an Annuity (Pension) with, though i never intended to do this until i am 65 (May 2017), so guys be very careful if you have a Pension Pot this Government :action-smiley-081: seem to be giving (HAHAHAHA) in one hand, but i can guarantee they are taking away in the other. My thoughts on this so called decision are unprintable on here :censored:, i really have to sit down now, and decide which way i am going in the next few years, i am almost certain that i will be having a pretty long vacation probably by using my Tax free Lump sum from this Pension Pot...

[Michael Parnham]

I assume receiving £150 per week must mean you have no other income at all Harry:Erm:

[Harry T]

Thats correct Michael.

[Michael Parnham]

Thats correct Michael.

Not good Harry:NoNo:

[Harry T]

Not good Harry:NoNo:

I Guess me having to live on £110 will allow the immigrant population to live a little better, and to hell with the guys who have paid into the system all there lives. Sometimes i look back now, and think to myself why during the times i was unemployed, i never signed on preferring to live off my savings, i now look back and think this is the thanks i get.. :NoNo::cwm23:

[stevewool]

Harry have you paid in all your working life so you do have the full state pension,

[grahamw48]

Yes, every week you're signed on you receive a NI 'credit'...which qualifies as a full contribution towards your State Pension. Also if you're detained at Her Majesty's Pleasure. :smile:

That's how I knew who had just come out of clink when I worked at the dole office . It was on their NI contribution record, 'HMP' . :biggrin:

[Michael Parnham]

Yes, every week you're signed on you receive a NI 'credit'...which qualifies as a full contribution towards your State Pension. Also if you're detained at Her Majesty's Pleasure. :smile:

That's how I knew who had just come out of clink when I worked at the dole office . It was on their NI contribution record, 'HMP' . :biggrin:

Never knew that Graham, Prisoners should lose their NI contribution as part of the punishment process also after leaving prison they should be billed for whatever the cost was to keep them in prison!:xxgrinning--00xx3:

[Harry T]

Yes i have paid in over my working life, except for when i was made redundant several times over the years, then i chose on most occasions to not sign on, but to use my savings to live off.
Then there were the years that i opted contracted out, so i have requested a statement of what my Pension entitlement is likely to be.

This however is my Pension Credit which is around £150 per week, which is being dropped to £110, because i have an amount of money which i have been paying into to take a private pension on my 65th birthday, very much the same as lots of you guys. Now the DWP have told me that i have to take this private pension NOW and not wait until my 65th birthday.

[stevewool]

I have just requested a statement asking for what amount i may have once i reach the retirement age,
I have another 9 years before i shall be receiving this also, but the figure came back £167, and they have taken £29 from this for me being contracted out , but remember the new pension does not come into force until April 2016, so the figure may be more or less, but it will not be below the £150 figure , Where did the £150 come from i just dont know, its on the other side of the page,
Like you are saying most have other pensions i have 3 , and i could start to draw on them all from the age of 55 but i am not doing this,
So what you are saying is, spend your money now and they may pay you the full £150 if you dont you will get £110, sounds silly to me

[grahamw48]

Yes, Pension Credit is a 'top-up' benefit, so any other income that comes along will affect it.

Shame the many thousands topping up THEIR benefits every day by working on the side, selling drugs, smuggled cigs and drink, fake goods, ebay trading etc etc aren't pursued more rigorously and locked up. :NoNo:

[stevewool]

So forgive me Graham , PENSION CREDITS is a big NO NO to ever have had

[Harry T]

I have just requested a statement asking for what amount i may have once i reach the retirement age,
I have another 9 years before i shall be receiving this also, but the figure came back £167, and they have taken £29 from this for me being contracted out , but remember the new pension does not come into force until April 2016, so the figure may be more or less, but it will not be below the £150 figure , Where did the £150 come from i just dont know, its on the other side of the page,
Like you are saying most have other pensions i have 3 , and i could start to draw on them all from the age of 55 but i am not doing this,
So what you are saying is, spend your money now and they may pay you the full £150 if you dont you will get £110, sounds silly to me

Steve i think the £150 figure is the minimum the government has decided a single person needs to live on, so lets assume someone has income from other sources, or savings above 10k, whatever this income is they will deduct that amount from the Pension Credit.

My whole point about this is, they are trying to force me to draw my Pension now, and NOT wait until i am 65 :cwm25: The DWP has decided for me, that my Pension savings are Income that can be used... so much for freedom of choice..

[grahamw48]

So forgive me Graham , PENSION CREDITS is a big NO NO to ever have had

I'm not an expert on it Steve, but it's income-based for over 60s. So you don't need to worry yet. :wink:

[Arthur Little]

So ... PENSION CREDITS is a big NO NO to ever have had

:nono-1-1: ... on the contrary, Steve!

:olddude: ... having retired a while before 60, I found it a TREMENDOUS boost to my modest occupational pension - in so far as it "tided me over" nicely in paying part of my Council Tax and entitled me to such things as free prescriptions + basic dental treatment in addition to reduced optical charges for a full five years - until I finally qualified for the State Pension ... when it stopped.