OK, this is one for all you financial advisors out there.
My father is just hitting 65 soon. He already has a pension from a company he worked for – which was for about 23 years from 1979. That company pension was partially money the company put in and partially payments he made in addition.
So he is getting that pension from the company anyway, as he retired early.
Now his state pension is due to start. He got a letter from the DWP people explaining that they are going to pay his pension from September, but it will mean he will get a deduction of almost exactly the same amount from his company pension. They said it’s because he contracted out of SERPS.
The biggest question I have here though, is when was it possible to contract out? And secondly, he was working from the early 60s… there is another 20 years of work and NI payments not connected to this job, so how come the state pension does not reflect that?