What are your retirement plans (financial perspective)?

[The Samaritan]

It's very complexed and thankfully I don't really care about it so a big no to top up NI contributions

link - takes you to other links if you want full info and if you are still unsre give them a call

https://www.nidirect.gov.uk/articles/understanding-and-qualifying-new-state-pension

https://www.nidirect.gov.uk/articles/understanding-and-qualifying-new-state-pension

HTH

.

 

[The Samaritan]

Not claiming any benefits, living off savings, been through all this with the accountant, the government people who deal with this, I wanted to make certain that my 46 years of contributions covered me for the full state pension when I reach 66, I packed in work at 63 and been told there's no need to pay anymore nic's.

Makes sense, thank you and good luck and happy retirement.

You appear 100% cert but if any doubt, call them to put mid at rest but judging by your post, you've done that.
Once again, enjoy!!!

 

[JohnD]

that can't be right unless you are claiming benefits unemploment pay where they pay you NI contributions. the new pensions work differently

You reach the max after 35 years NI contributions or credits.

https://www.gov.uk/new-state-pension/how-its-calculated

And that's a FACT.

 

[ic1927]

Here's what they 'quote' told me.

"There is no law that says you have to work until you hit state pension age. If you do work, then you have to pay NICs until you reach state pension age. If you continue to work after you have hit state pension age, then you still pay income tax, but you don’t have to make NICs any more.

In order to receive the full state pension, you need to have made NICs for at least 35 years. If you weren’t working for certain reasons, such as you were raising a family or caring for someone, you can claim NIC credits for those years. If you haven’t accrued 35 years on your national insurance record, you could receive a lower state pension."

 

[The Samaritan]

Most likely I got a different version as I left at the start of 2017 and I think I get a letter every year reminding me of options to contriube for the 'full new pension' rate. As I said, can't be bothered paying laods more money for more than ten years by which time there may not be any money let on the pot.

For me, 100% much lower state pension rates at 67 and I had paid more than 35 years at retirment is at 67 for me I think or is it 68, better check but long way off

 

[motorbiking]

"Equity release to further boost pension income." I just wouldn't do that ever, possibly have a plan to switch one of your rental BTLs to a holiday home and then consider a plan that down-sizes the homes as you step down.

I was semi retired from my mid 40s, then when the pandemic hit I came back to work as I wasn't able to do the things I liked in retirement. The biggest spanner financially for me was/is getting divorced after a long marriage. This will impact me financially quite a bit. So I will likely now keep working until 55 (another 5 years) and then see if I can minimise my outgoings for the first 10 years of semi retirement. I'm a commercial leisure skipper, so tend to fund my summers by doing the odd charter gig.

Hobby jobs are a great way to fund early semi retirement.

 

[The Samaritan]

"Equity release to further boost pension income." I just wouldn't do that ever, possibly have a plan to switch one of your rental BTLs to a holiday home and then consider a plan that down-sizes the homes as you step down.

The most dangerous ones are where they so-called gurantee you can live there for the rest of your life - what happens if the co that gave you tose worthless guarantees goes broke/etc. Or neighbours from hell move in next door.

NB: So many dangers re above schme, never get taken in consult family/friends and an IFA a trusted one poss from your bank/etc.

 

[diy_fun_uk]

You must be loaded!

Andy

lol, not really. I'm comfortable but tbh that's a lot to do with not doing much in a financial sense, boring some would call it. As a consequence however, I do accrue some savings.

 

[motorbiking]

The other thing is energy futures, anything that can be done today to reduce future energy bills.

 

[The Samaritan]

total gamble, ie you go to bed think you have 50k and wake up to a zero - it happened to currency futures shortly after covid was indetified in Marc h 2021.

 

[gas112]

re taking pension early Get your figures for 60 and 65 and work out how much money you will actually get till say the age of 82 and you will find its usually around the same amount of money .Then you start to lose a few quid each year . Far better to have the money when you are younger and able to use it

 

[The Samaritan]

You reach the max after 35 years NI contributions or credits.

https://www.gov.uk/new-state-pension/how-its-calculated

And that's a FACT.

Clearly that does not apply to people like me where I apid almost all of my contributions to the old systems, fact

from gov link

You’ll need 35 qualifying years to get the full new State Pension.

You’ll get a proportion of the new State Pension if you have between 10 and 35 qualifying years.

Example

You have 20 qualifying years on your National Insurance record after 5 April 2016.
You divide £179.60 by 35 and then multiply by 20.

Your new State Pension will be about £102.62 per week.

https://www.gov.uk/new-state-pension/how-its-calculated
https://www.gov.uk/new-state-pension/how-its-calculated

===============

So You are WRONG, fact!! I was talking re my example where almost all of the 30+ years past 35 years were paid on the old sytem and I left work at least 12 years before my retirement. I get a letter every year telling me I have the option to "top up to get full state pension" FACT

 

[Mottie]

Current age - 64.
Planned retirement age - whenever I feel like it.
Paid our mortgage up about 15 years ago, got a few quid tucked away, been getting my private pension since I was 60, state pension when I'm 66, commercial premises owned outright with PP for development to sell or possibly rent. Thinking of getting rid of the place in Spain this year but that's got to be split two ways. Poss get a few quid inheritance from my mum or MIL if they don't go into a care home, both own their own homes and have a tidy sum put away but not banking on it.

If only we knew when we were going to pop our clogs - it'd be so much easier to plan!

Edit: My state pension says I'll be getting £211 a week and cant be improved so not short by any amount. Only missed one years contributions when I was in RSA in 1982.

 

[The Samaritan]

re taking pension early Get your figures for 60 and 65 and work out how much money you will actually get till say the age of 82 and you will find its usually around the same amount of money .Then you start to lose a few quid each year . Far better to have the money when you are younger and able to use it

I worked out as we have other pensions and other income with was not worth the money but others it may be.

 

[big-all]

ok my pension stamp record reads up to 1975 6 full years
then full years to 1996 then the odd sporadic year with some gaps [full years 69-96=27]
but further full years in 97 05 06 07 09 10 12 so only the full years count as thats 34 full years but as i say the amount to catch was greater each year i checked