Can individuals contract out?

In the past, pension schemes could 'contract out' from the additional State Pension (a supplement to the basic State Pension) by providing benefits that were at least as good. Members and employers paid lower National Insurance contributions.

However, contracting out came to an end on 6 April 2016 along with the additional State Pension, when the single State Pension was introduced.

Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.