Pensions info for people who were contracted out

[jennyjj01]

Top ups can cost far less if you already had some contributing weeks.

I think you can only do that for certain years, eg the last 6. You need to make sure you're not buying a year that doesn't actually increase your pension. I don't know whether they'd bother to stop you wasting money.

If you call them and get the right department, they'll tell you how much each year will cost and how much extra that year would buy. They tell you they cant give financial advice, but they will implicitly suggest considering not to bother to buy a last year that may only add a couple of pounds to entitlement. I found them very helpful. Record calls if you can.

[Frnc]

Top ups can cost far less if you already had some contributing weeks.

I think you can only do that for certain years, eg the last 6. You need to make sure you're not buying a year that doesn't actually increase your pension. I don't know whether they'd bother to stop you wasting money.

If you call them and get the right department, they'll tell you how much each year will cost and how much extra that year would buy. They tell you they cant give financial advice, but they will implicitly suggest considering not to bother to buy a last year that may only add a couple of pounds to entitlement. I found them very helpful. Record calls if you can.

I just checked my NI record online. It says 'show payable gaps', and that only shows 2023-4. In the list of years, the other recent years show as full. If I click on a not-full list before 2019 it says 'it is too late to pay for this year'. So, no, they won't let you buy years that do nothing.

I have the app but it sometimes forgets I enabled face ID. So you have to remember a 6 digit pin. The app just goes to the website for this, anyway.

[Frnc]

For me, final year would cost £750, and I already paid maybe £150. This would only buy me £15 a month extra. Which is £180 a year. So payback time is more like 5 years for that year, so I've not bothered. I think it's too late now, anyway. I'm only losing £2.60 a week, approx.

Regarding these years, you can pay for them by direct debit. I retired about 8 years ago, and for about 7 years I paid about £70 a month. So I bought about 7 extra years. Basically you pay for each year over 12 months, you buy a year each year.

[jennyjj01]

Regarding these years, you can pay for them by direct debit. I retired about 8 years ago, and for about 7 years I paid about £70 a month. So I bought about 7 extra years. Basically you pay for each year over 12 months, you buy a year each year.

If you are still a few years before eligibility, you could get a part time job paying just over £120 per week. Those weeks work count as paid up. Also, certain means tested benefits count as qualifying.

[ForgeCorvus]

Still working, not going to get the State until 2038. Checked contributions and I'm in line to get the full whack..... So nothing needs doing there.

Its the compulsory private pension I'm trying to square in my head....... Especially now I've found out to buggers charge a management fee that basically means I only get 11 contributions a year into the pot, will their fee go up if I raise my input?

The predictions give an annual pay out of around six weeks wages...... Thats not going to be all that useful

[jennyjj01]

≥

Its the compulsory private pension I'm trying to square in my head....... Especially now I've found out to buggers charge a management fee that basically means I only get 11 contributions a year into the pot, will their fee go up if I raise my input?

The predictions give an annual pay out of around six weeks wages...... Thats not going to be all that useful

AIUI, the employer is compelled to offer it, but enrollment is optional.
Fees of 1.5% would be in order, though they might fleece you with a 5% bid offer spread, plus annuity fees1/12 sounds too much.

[Frnc]

Still working, not going to get the State until 2038. Checked contributions and I'm in line to get the full whack..... So nothing needs doing there.

Its the compulsory private pension I'm trying to square in my head....... Especially now I've found out to buggers charge a management fee that basically means I only get 11 contributions a year into the pot, will their fee go up if I raise my input?

The predictions give an annual pay out of around six weeks wages...... Thats not going to be all that useful

Can't advise you of current rates, but can tell you what mine paid for comparison. My company pension was only paid for about 8 or 9 years. I was on about 20K at the time I left (16 when I started). So that's about £1,700 before tax, pension and NI when I left. The pension I get from it is reduced, due to taking it 8 years early. I had options eg less per month but index linked, and maybe more per month but not increasing much. I chose a middle option which goes up 3% a year. I get £400 a month, so £4,800 a year. That is 2.8 month's wages before tax etc. Remember, I only worked there for about 8 or 9 years and I took it 8 years early, so it's reduced in both ways. This one isn't bad, so long as inflation doesn't get too high for too long. I have no idea how much I paid a month for it. I stopped working there in 1999 so it earned interest for around 18 more years before I took it out. I think the pot was worth about 143K when I took it out. I think I took 10% tax free lump sum. Obviously if I hadn't, the monthly amount would be more. 10% tax free is the most you can take.

My other one got bailed out by the government, and only pays out £175 a month, and doesn't increase once you take it, which I have, so eventually it won't be worth a lot due to inflation. I took the 10% tax free lump sum on this one as well.