Transfer your whole fund to another pension provider and then take 25% of it.
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What do you mean by Contracted out?
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What do you mean by Contracted out?
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I will work until I'm 70. I won't have a good pension. But like you I won't be able just to sit around doing nothing.
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So can I take an annuity now ? If do is it worth doing it now?
It used to be permitted, if you were employed and had an occupational pension, for your employer to make a contribution to it and deduct, from the National Insurance Contributions, an amount intended to equal that part of NI that went towards the earning related part of the State Pension. This was called "contracting out"
It was alleged by the pension trade that they would invest it more wisely than the State, so that you would get a better pension (and they would make handsome commission, high charges, and profits)
It later became apparent that the reliability of the State Pension was more valuable than the extravagant promises of the salesmen, and this practice is no longer permitted. Charges and deductions on private pensions can now be capped (at rather a high rate) so the punter need not be fleeced so badly.
It was finally abolished in 2016 but I think it mostly fell out of favour in the 1990s, when people found their pension schemes ran short.
When your state pension is calculated, any years that you were Contracted Out are deducted from your contributions record, and the amount of your pension is reduced, and this will be shown on your pension forecast.
Your private or employment pension may or may not have increased enough to match or exceed the state deduction
I used to be in a contracted-out occupational pension scheme, and was not been able to work out if the amount deducted from my forecast was smaller or greater than the amount payable in the private scheme. I transferred out after leaving and have transferred other pensions as well so I can't identify it. I think the so-called flat rate is now about £179 a week. It is not really a flat rate.
Some people get more than that because there were various other state schemes in the past that charged higher NI on higher earnings, specifically to pay additional state pension. Your pension forecast will say if that applies to you.
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Almost certainly not a good idea.
Here's an article about Contracting Out
It is not simple.
https://www.thisismoney.co.uk/money...ow-state-pension-affected-contracted-out.html
It is not simple.
https://www.thisismoney.co.uk/money...ow-state-pension-affected-contracted-out.html
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Pension options explained here
https://www.telegraph.co.uk/financial-services/pensions-advice-service/pension-options-at-55/
given how much I have paid in tax and NI I find it a bit unfair to have a reduced state pension.
https://www.telegraph.co.uk/financial-services/pensions-advice-service/pension-options-at-55/
given how much I have paid in tax and NI I find it a bit unfair to have a reduced state pension.
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Dosnt apply to me as I've been pretty much self employed all my working life , with the exception of a few stints at being employed..
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I found that interesting and makes me think just to leave it in and keep adding to it.. but I would need to think if its best jumping from virgin to another.
Tell me about it. I phoned up my GP's surgery to get my right ear syringed. Said they don't do it any more and said I could go to a private hearing company and they will 'micro suction' the wax out for for between £40 to £50 per ear. Don't they know if feckin' dying here???
Robbing b'stards!!
Yes.
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