State pensioners may see sum affected if they were in a workplace pension

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This is due to rules about the “starting amount” a person typically gets when they receive the sum. The starting amount is part of the new state pension and is calculated by two key components.

It will be the higher of either:

  • The amount someone would get under old state pension rules
  • The amount a person would get if the new state pension had been in place at the start of their working life.

If a person is receiving the state pension, then their National Insurance record before April 6, 2016 will be used to calculate their starting amount.

However, it is worth noting this starting amount may include a deduction.

READ MORE: Pensioners lose £8,000 of state pension as expats see sums frozen

People were contracted out if the National Insurance contributions line had the letter D or N next to it.

The letter A means a person was not contracted out.

Any different letters will mean a person should check with their employer or pension provider. 

Britons are more likely to have been contracted out if they were in certain jobs.

Primarily, this is the case for those who worked in the public sector.

Roles include working for the NHS, armed forces, the police, the civil service and teaching. 


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