State Pension top ups - missold?

[savbs]

A few years back I was short on my pension years and had the opportunity to make AVC's to buy the missing years.

 

I based my decision on the fact that I could claim at 60 so in the long run I would make my contributions back within 3 years, so it was a wise thing to do.

 

Then they changed the pension age for women, now I cannot claim until I am 64. This is not the return on my investment I envisaged and indeed if I do not see my 64th year, I am about 4k out of pocket!

 

With all this talk of people being missold just about everything - does this fall into the same bracket?

 

What do the forum think?

[Conniff]

Personal feelings. It makes sense to increase the pension age for all as there is no denying humans are living longer. I also think it fair to bring women in line with men on the retirement age. Equality goes 'all' the way, not just some of it.

 

Have you been missold? I would say not but it is certainly worth investigating, you have nothing to lose.

[honeybee13]

A few years back I was short on my pension years and had the opportunity to make AVC's to buy the missing years.

 

I based my decision on the fact that I could claim at 60 so in the long run I would make my contributions back within 3 years, so it was a wise thing to do.

 

Then they changed the pension age for women, now I cannot claim until I am 64. This is not the return on my investment I envisaged and indeed if I do not see my 64th year, I am about 4k out of pocket!

 

With all this talk of people being missold just about everything - does this fall into the same bracket?

 

What do the forum think?

 

Hello there.

 

I think we need some more information if you're able to tell us please. I'm not sure what your AVCs are related to. Have you bought added years in a final salary pension scheme for example?

 

If you wouldn't mind telling us a bit more, it would help us to advise you.

 

My best, HB

[savbs]

To get a full state pennsion one has to have 30 qualifying years. When I asked for a state pension forecast in 2006 ish, I was short by 6 years, i paid four years contributions volunarily as this would increase my pension from 24/30ths to 28/30ths of the full pension. I have since purchased a further year. I concluded that this was money well spent as I could (at that time) draw my pension in 2014. Now I cannot draw my pension until 2019. So to put it another way, I was expecting a return on my voluntary contribution much earlier than I am now going to get it.

I have taken these funds from one form of saving, so have lost that return, based on the information I had regarding the return I was going to get come 2014.

I do feel cheated as the goalposts have moved, there was lots of talk in the press at the time about it being the best investment one could make to top up their state pension - and i agreed - but now my funds are sat in the governments coffers not earning any return!

[Conniff]

Financial speculation, not always as clear cut as some would have us believe.