New State Pension starting amount and full record of qualifying years- trial service

slade1961 wrote: »

hello

could some on please guide me through the pension forecast maze in simplistic terms thank you .

received forecast under new rules from 6 april 2016
it said...
my estimate will be £152.19 when i reach pension age 2028. @38 years up to tax year 2014/15

cope amount £29.44 + £152.19 = £181.63.

do i deduct cope amount from £152.19 = £122.75, and is this no my actual pension forecast under new rules ?

or is the figure £152.19 my actual pension forecast?
i also got a figure from gov new verify website

which said my estimate under current law is £156.34 to april 2015
different from original; forecast of £152.19

no mention of my foundation amount or which is my higher amount
or starting amount i just need to know my true estimate . opinions would be gratefully received thank you.

Your (provisional) starting amount, or foundation amount to use the old terminology, is the figure on the online system 'Amount based on your latest National Insurance record (5 April 2015)' which I am guessing is the figure £152.19? The following is based on that figure. That doesn't allow for 2015/2016 contributions but that won't make much difference to you as you already have over 35 Qualifying Years.

Forget about COPE, the DWP have only put it there in an attempt to make people realise they aren't being ripped off by getting less than the full single tier pension of £155.65pw.

Your starting amount at April 2016 has been calculated as higher of

OLD RULES
min(30,38)/30 x 119.30 + 32.89 (additional state pension)
= 30/30 x 119.30 + 32.89
= 152.19

NEW RULES
= min(35,38)/35 x 155.65 - COPE
= 35/35 x 155.65 - COPE
= 155.65 - 29.44
= 126.21

So the old (current) scheme calculation is higher at £152.19pw and forms your provisional Starting Amount at April 2016.

With probably one extra Qualifying Year post April 2016 (assuming you don't reach SPA in 2016/2017) you will get up to the full single tier pension of £155.65pw

bigfreddiel wrote: »

I just get two tabs, I don't get What Affects it.

I logged on via with my Gateway account. I could log on with my beta verified account, maybe it goes to the three tab form.

That won't affect it.

The Government Gateway and Verify are just ways for them to decide you are who you say you are and so can access your record.

I have all 3 tabs, but can only access via Gateway not Verify.

Experian are unable to resolve their technical problem with why I can't access through Verify, I've been waiting for 4 weeks for them to sort it. I've rung them a few times but they just say 'it is under investigation'.

GunJack wrote: »

Only 2 tabs for me, in via Verify.

Reading the COPE/Contracting Out page linked above, I still think they aren't doing a very good job of explaining it - in trying to put it simply they appear to be putting statements in there that are making it more complex...

I completely agree with you there.

The 'What affects it' tab should be renamed 'How my starting amount is calculated'

Then on that tab they should show a breakdown of the calculation, so it might say for example


Your starting amount of £152.19pw is the higher of the amount you have earned to date based on the existing state scheme (Old Rules) and the new state scheme (New Rules). In your case the Old Rules calculation is higher.


OLD RULES
= Basic state pension + additional state pension (allowing for c/out)
= 30/30 x 119.30 + 32.89 (additional state pension)
= 152.19

NEW RULES
= 35/35 x 155.65 - COPE* (deduction for contracting-out)
= 155.65 - 29.44
= 126.21


*The deduction for contracting-out (COPE) of £29.44pw under the New Rules calculation is because you contracted-out of the additional state pension in the past and so will normally have earned a roughly equivalent amount in your private pension arrangements, that you would not have earned had you been contracted-in.

(optional para) Someone in the identical position as you, apart from their having been contracted-in to the additional state pension throughout, might have had a starting amount of £181.63pw (152.19 + 29.44) but they would have not have had the extra money in their private arrangements that would normally make up the £29.44pw difference from your starting amount.