The state pension is the bedrock of retirement planning for millions, and understanding what one gets is key. It is for this reason many people will want to be aware of the issue of contracting out, which may have already affected them.
Those who have been in a workplace, personal or stakeholder pension in the past are likely to be impacted.
The Government website explains the state pension starting amount may include a “deduction”.
This is the case for those who were:
- In certain earnings-related pension schemes at work (such as final salary or career average) before April 6, 2016
- In certain workplace, personal or stakeholder pensions before April 6, 2012.
If this is the case, then the amount of National Insurance a person paid may have been affected.
READ MORE: NS&I to increase Premium Bonds prize fund rate
Finding out whether one was contracted out or not can avoid nasty surprises at retirement.
A person may think they have the full 35 years of National Insurance contributions needed for the full state pension, but not necessarily receive this sum.
Checking a state pension entitlement can be achieved through the state pension forecast service.
The service outlines how much state pension someone can get, when, and how this might be able to be increased.
Applying online through the Government website is considered to be the quickest way to find out details.
However, Britons can also fill in the BR19 application form and send it by post.
Alternatively, interested individuals can also call the Future Pension Centre to have a forecast posted out to them.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
