ICR 131: Why are they reducing my State Pension?

In this episode of Informed Choice Radio, Martin explains why so many people are seeing an amount deducted on their new State Pension forecasts.

There is also a roundup of the latest personal finance news and an update from the world of Informed Choice.

Why are they reducing my State Pension?

Martin answers a listener question from Nigel, who has discovered he and his wife are due to receive lower State Pensions because they were previously contracted-out.

Lots of people are finding themselves in this position; in fact, most people have been contracted out of the additional state pension at some point in their working lifetime.

Martin explains how the old State Pension system worked and what it meant to be contracted out of the additional State Pension, and also how to find out if this was the case.

He explains the ‘contracted out pension equivalent’ or COPE which is appearing on so many State Pension forecasts for people reaching State Pension age on or after 6th April 2016, and what you can do if you want to top-up your State Pension income.

Personal finance news update

-The US Federal Reserve has left interest rates unchanged ahead of the US Presidential election next week.

-Price inflation in the UK is set to soar to 4% towards the end of next year, according to a leading think tank.

-UK houses now cost six times annual earnings, according to the Nationwide.

-£53.9m in Premium Bond prizes remain unclaimed, according to National Savings and Investments.

-The State Pension is no longer fit for purpose, with newly published government data revealing the fragility of the State Pension system.

Useful links mentioned in this episode

–State pension top up calculator

–The Pensions Advisory Service briefing note on topping up your State Pension

Get answers to your personal finance questions

Do you have a personal finance or investing question for Martin?

Email martin@icfp.co.uk or ask on Twitter @martinbamford.

You can call our dedicated podcast voicemail line on 020 8144 2745 with your question or visit www.icradio.co.uk/voicemail to leave an online voice message.

Help us spread the word!

Thank you for listening to this episode of Informed Choice Radio. Please use the comments section below to share any feedback you have.

If you enjoyed this episode, please share it by using the social media buttons on this page.

If you enjoy the show, please subscribe in iTunes and write us a review! Reviews really help us stand out from the crowd and reach more listeners.

Our latest iTunes review

Look at learning about the world of finance – start here!

***** in iTunes by David Dhannoo from UK on October 31, 2016

I’ve been listening to this podcast since Jan-Feb this year – I like Martin’s insights and the guests he has on. I find a lot of finance content stuffed with jargon but this podcast is easy flowing and have learnt a lot since tuning in from the start of the year. Definitely give this podcast a listen!