Just had the letter!

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Dragonrider
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Feb 2021 19 11:14

Just had the letter!

Just received a letter in a brown envelope this morning, with a return Postcode address of Swansea. I thought at first it was from the DVLA asking why I haven't taxed my car recently. (Sold it 18 months ago, wish I done it 2 years earlier!).

But no, it was a letter from the DWP inviting me to start the process to claim my state pension later this year.

Logged on to the Pensions website and filled out the few questions and it was a doddle! All done, now to just sit back and wait for the next regular pension payment to start rolling in. I doubt I'll be back volunteering in the office before that comes through, but volunteering won't affect the amount anyway.

Luckily I have paid into personal pensions pretty much all my working life and built up a nice income even before I receive my State Pension.

Just 4 months to go, and counting! -Cool.png-
After 28 years in one school, moving on to a new start and new lifestyle, Headmistress free! Double Stroke survivor.
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thecaretaker
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Feb 2021 19 12:08

Re: Just had the letter!

Congratulations. I've got to wait another couple of years before I get my state pension. And don't forget you'll also get the annual winter heat allowance -Big grin.png-

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Keyolder
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Feb 2021 19 15:29

Re: Just had the letter!

Congratulations DR -Like.png- hope you get the full state pension, were you ever contracted out?
My brown letter never arrived in time for my intended retirement btw, had to ring them up and get another one sent out -Confused.png-
I don't suffer from insanity, I enjoy every minute of it... -Crazy.png-
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Dragonrider
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Feb 2021 19 21:10

Re: Just had the letter!

Keyolder wrote: Fri, 19th Feb 2021, 3:29pm Congratulations DR -Like.png- hope you get the full state pension, were you ever contracted out?
My brown letter never arrived in time for my intended retirement btw, had to ring them up and get another one sent out -Confused.png-
No, I won't as I was contracted out, and I already know how much extra a month that gives me, plus an initial lump sum, plus I haven't been able to work these last few years, so I expect it will be around £600-650 a month from what I can work out. But, as I said above, I've paid into my own personal pensions for many years and I get more than the state pension already, so I'm comfortable nowadays.
After 28 years in one school, moving on to a new start and new lifestyle, Headmistress free! Double Stroke survivor.
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Skoolkeeper
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Feb 2021 20 10:19

Re: Just had the letter!

Keyolder wrote: Fri, 19th Feb 2021, 3:29pm Congratulations DR -Like.png- hope you get the full state pension, were you ever contracted out?
My brown letter never arrived in time for my intended retirement btw, had to ring them up and get another one sent out -Confused.png-
Contracted Out = Lower N.I contributions, when you contributed to a personal/private/company pension scheme, but were all contracted back IN not so many years ago without being informed, I think I am correct in saying.
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Keyolder
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Feb 2021 20 10:28

Re: Just had the letter!

Skoolkeeper wrote: Sat, 20th Feb 2021, 10:19am Contracted Out = Lower N.I contributions, when you contributed to a personal/private/company pension scheme, but were all contracted back IN not so many years ago without being informed, I think I am correct in saying.
You are correct it was 2016 when we were all contracted back in.
Dragonrider wrote: Fri, 19th Feb 2021, 9:10pm No, I won't as I was contracted out, and I already know how much extra a month that gives me, plus an initial lump sum, plus I haven't been able to work these last few years, so I expect it will be around £600-650 a month from what I can work out. But, as I said above, I've paid into my own personal pensions for many years and I get more than the state pension already, so I'm comfortable nowadays.
I was also contracted out and your calculations are correct DR I get around £600 state pension per month -Success.png-
I don't suffer from insanity, I enjoy every minute of it... -Crazy.png-
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Skoolkeeper
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Feb 2021 20 11:12

Re: Just had the letter!

Keyolder wrote: Sat, 20th Feb 2021, 10:28am You are correct it was 2016 when we were all contracted back in.


I was also contracted out and your calculations are correct DR I get around £600 state pension per month -Success.png-
So, what is the State pension monthly payment difference if you were NOT contracted OUT?
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Keyolder
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Feb 2021 20 11:26

Re: Just had the letter!

Skoolkeeper wrote: Sat, 20th Feb 2021, 11:12am So, what is the State pension monthly payment difference if you were NOT contracted OUT?
£175.20p per week -Neutral.png-
I don't suffer from insanity, I enjoy every minute of it... -Crazy.png-
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EBJ
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Feb 2021 20 11:59

Re: Just had the letter!

Although retired i still get unpaid tax demands from the tax man and have just sent off a cheque for £75 owed tax on my state pension, i also have a private one i have been paying into since the 80's.

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Dragonrider
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Feb 2021 20 13:26

Re: Just had the letter!

Keyolder wrote: Sat, 20th Feb 2021, 11:26am £175.20p per week -Neutral.png-
Assuming you have not missed paying National Insurance contributions for any years that you were unemployed, as I was.
After 28 years in one school, moving on to a new start and new lifestyle, Headmistress free! Double Stroke survivor.
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Keyolder
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Feb 2021 20 15:49

Re: Just had the letter!

Dragonrider wrote: Sat, 20th Feb 2021, 1:26pm Assuming you have not missed paying National Insurance contributions for any years that you were unemployed, as I was.
Good point, £175.20p is the maximum state pension payment you would receive if you had paid in your full whack. I don't know of any pensioner friend that is getting the maximum pension, all mostly in the £140 per week region.
I don't suffer from insanity, I enjoy every minute of it... -Crazy.png-
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Dragonrider
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Feb 2021 21 09:47

Re: Just had the letter!

Keyolder wrote: Sat, 20th Feb 2021, 3:49pm Good point, £175.20p is the maximum state pension payment you would receive if you had paid in your full whack. I don't know of any pensioner friend that is getting the maximum pension, all mostly in the £140 per week region.
I've looked at topping up my State Pension over the last year. IF I've read the bumph correctly, I'm two years short of a full state pension, to obtain this I'd need to pay £7,500 for each year. In other words, £15K. It would take a minimum of 3 years before I'd see the benefit of doing so, assuming that was my only income. Of course, the snag currently s that due to Covid there is no way to contact the DWP to discuss this or find out how to make this payment.

Now, as I was opted out many years back, I'm actually in receipt of my "Opted-out annuity", so I know how much I get. Again, if I have read the bumph correctly, opting out cost me £80 a month off my State Pension, BUT I receive £109 per month from opting out, PLUS of course, the wonderful Tax-Free lump sum that comes with a personal pension, which is what Opting Out gives you. This means I am almost £30 a month better off for Opting Out, plus my Nest Egg grew nicely.

For me, in my opinion, it is not worth it to pay the £15K to build up my state pension, as I'm already receiving better than paying the missing two years would give me.

Plus, my State Pension is not my only income having paid into personal pensions for so many years and never been offered a school pension as this was only available to teachers and not the menials. So, once I receive my state pension, I will be paying tax, so it would take even longer to recoup the benefit of paying £15k. Also, due to my ill health, my life expectancy is not what it should be if I'd looked after my health better.
After 28 years in one school, moving on to a new start and new lifestyle, Headmistress free! Double Stroke survivor.
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Keyolder
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Feb 2021 21 10:30

Re: Just had the letter!

Dragonrider wrote: Sun, 21st Feb 2021, 9:47am I've looked at topping up my State Pension over the last year.
I’m in the same boat as you DR, I also looked into making up the difference for my opted-out phase but found it was not worth it. I have one works pension plus my state pension but sadly am still a taxpayer.
-Disappointment.png-
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Skoolkeeper
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Feb 2021 21 11:21

Re: Just had the letter!

EBJ wrote: Sat, 20th Feb 2021, 11:59am Although retired i still get unpaid tax demands from the tax man and have just sent off a cheque for £75 owed tax on my state pension, i also have a private one i have been paying into since the 80's.
I would feel if you were getting these tax demands you are over your personal tax threshold.
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Skoolkeeper
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Feb 2021 21 11:52

Re: Just had the letter!

Keyolder wrote: Sun, 21st Feb 2021, 10:30am I’m in the same boat as you DR, I also looked into making up the difference for my opted-out phase but found it was not worth it. I have one works pension plus my state pension but sadly am still a taxpayer.
-Disappointment.png-
When I took early retirement private pension, I hopefully worked out that if I took a large lump sum and then a small monthly private pension, that in time when I would receive my reduced opted out state pension I hopefully would not pay any income tax on my income re personal allowance, I still have about 4/5 years until I become a UK state pensioner. As for non contribution years I feel I did not contribute for 7 years in total so far, but although in the system re my private pension I do not pay any income tax or N.I contributions at present as I am below my personal allowance, whether this will have a knock on effect of about 6 years in total, I do not know, so possibly at the end of the day I personally have not contributed for 13 years on reaching my state retirement age. The only time I claimed unemployment benefit was for 6 months back in the 90s and the reason for that was I had a young family and had payed into the system, it also kept my N.I Stamp payed, The other 7 years mentioned was when I travelling and working abroad, Still time will tell as they say, but living very comfortably on my private pension here in my home in Spain. -Cool.png- ps I will visit the UKGOV website to find what state pension I should receive, soon. stay safe and healthy everyone.
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