How will drawing my state pension affect my TfL pension and what happens if I work part-time? Steve Webb replies

Also, if I decide to work part time at a weekend job how will it affect my pension? Many years ago there were rules about how much you could earn whilst drawing a state pension but these have long-since been abolished. Due to a process known as 'contracting out', in those years you were paying a reduced rate of National Insurance Contributions and you were building up less in the way of 'earnings-related state pension' (SERPS) than you would have done if you had not been in the TFL scheme. The good news, however, is that once you are over state pension age there will be no National Insurance Contributions to be paid on your wages. He is ready to answer your questions, whether you are still saving, in the process of stopping work, or juggling your finances in retirement. He is now a partner at actuary and consulting firm Lane Clark & Peacock. Please include a daytime contact number with your message - this will be kept confidential and not used for marketing purposes. It includes links to Steve's several earlier columns about state pension forecasts and contracting out, which might be helpful.

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