New rules
alfonso
Posts: 38 Forumite
Just heard something on radio regarding state pension entitlement and possible top ups.
So, I have checked the web site and im told my state pension starts in 2027 and at £155.65p.
It also tells me an estimate of £119.79. ?/
I have 35 yrs contributions and I retired at 50 with a final salary pension in 2010 and have paid no NI since then.
Does having the 35 yrs mean I get the higher figure or do I need to top up ?
The lower figure has confused me completely.
Thanks in advance
Alf
So, I have checked the web site and im told my state pension starts in 2027 and at £155.65p.
It also tells me an estimate of £119.79. ?/
I have 35 yrs contributions and I retired at 50 with a final salary pension in 2010 and have paid no NI since then.
Does having the 35 yrs mean I get the higher figure or do I need to top up ?
The lower figure has confused me completely.
Thanks in advance
Alf
0
Comments
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The forecast tells you what they think you will get when you retire, a best case scenario.
It then tells you what you currently have accrued.
The next box tells you how much you can achieve and how many years contributions you need to get that amount.
At April 16 a starting amount was calculated using the higher of either the "old" calculation of up to 30 years basic + additional pension or the "new" of up to 35 years - a contracted out deduction.
If you have 35 years or more contributions and your current amount is less than £155.65 then you must have been contracted out, the contracted out deduction will be shown in one of the links, so the old calculation has been used. You can make up the pension to the max of £155.65 by employment or by paying post 2016 voluntary class 3 contributions, 155.65 - 119.79 = 35.86 / 4.45 = 8 years.0 -
It would appear that your "starting amount" is £119.79.
You can make voluntary contributions to bring your SP up to the full new state pension.
http://www.thisismoney.co.uk/money/pensions/article-3827421/Half-million-workers-state-pension-bargain-basement-rates.html
https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions
http://forums.moneysavingexpert.com/showthread.php?t=55377400 -
Hi, I am completely confused by this as well.
I checked last year before retiring and had 42 years contributions so I thought I would be eligible for the full state pension and retired in October.
After hearing the clip on BBC this morning, I've just checked the pensions website that states I am eligible for £132.37 and would have to contribute till October 2021 (age 66) to receive the full pension.
I am really shocked by this as I am using my savings to supplement my small NHS pension till age 66. I hope someone comes along soon that can explain this.
Sorry for jug hijacking your thread Alfonso but this may explain your situation as well xxDebt free - Mortgage free - Work free ( in that order )0 -
plumduff55 wrote: »
Sorry for jug hijacking your thread Alfonso but this may explain your situation as well xx
I was always under the impression that if I got 30yrs NI contributions in I would get a full state pension, I know it used to be 35 and has now reverted back to 35.
If I was due to pay more NI I would have thought it could have been deducted at source along with tax from my monthly pension.0 -
plumduff55 wrote: »Hi, I am completely confused by this as well.
I checked last year before retiring and had 42 years contributions so I thought I would be eligible for the full state pension and retired in October.
After hearing the clip on BBC this morning, I've just checked the pensions website that states I am eligible for £132.37 and would have to contribute till October 2021 (age 66) to receive the full pension.
I am really shocked by this as I am using my savings to supplement my small NHS pension till age 66. I hope someone comes along soon that can explain this.
Sorry for jug hijacking your thread Alfonso but this may explain your situation as well xx0 -
No problem, we both in the same boat here.
I was always under the impression that if I got 30yrs NI contributions in I would get a full state pension, I know it used to be 35 and has now reverted back to 35.
If I was due to pay more NI I would have thought it could have been deducted at source along with tax from my monthly pension.0 -
So, am I right in thinking that the old pension ( before the rules changed ) was £132.37 and I will definitely get that. But I can pay the extra for the 6 years to bring me up to the new payment of £154.61.
Thanks for your advice molerat xxDebt free - Mortgage free - Work free ( in that order )0 -
Forgive me in advance for having some dumb moments.
Think I need a reboot of the brain here as the numbers aint adding up or I am reading the forecast wrong
I have 35 years of full contributions
11 years to contribute before 5 April 2026 ( at an average 700gbp/pa )
5 years when I did not contribute enough (again 700gbp/pa )
That would make 51yrs of contributions to get the new full SP0 -
The Breakdown of my pension states:
Estimate based on your National Insurance record up to 5 April 2016
£153.58 a week
Forecast if you contribute another year before 5 April 2023
£155.65 a week
£155.65 is the most you can get
It also states:
Summary
38 years of full contributions
7 years to contribute before 5 April 2023
4 years when you did not contribute enough
I was a member of a final salary pension scheme prior to 1996.
If I look at the COPE page it states:
Contracted Out Pension Equivalent (COPE)
Your workplace or personal pension scheme should include an amount of pension which will, in most cases, be equal to the additional State Pension you would have been paid. We call this amount your Contracted Out Pension Equivalent (COPE). Your COPE estimate is shown below.
The COPE amount is paid as part of your other pension schemes, not by the government. The total amount of pension paid by your workplace or personal pension scheme will depend on the scheme and on any investment choices.
Your COPE estimate is £56.75 a week.
So does this mean I will only get paid £98.90 (£155.65 - £56.75) even though I will have paid in for 45 full years by the time I retire?
Yours confusedly,
Rose!0 -
Forgive me in advance for having some dumb moments.
Think I need a reboot of the brain here as the numbers aint adding up or I am reading the forecast wrong
I have 35 years of full contributions
11 years to contribute before 5 April 2026 ( at an average 700gbp/pa )
5 years when I did not contribute enough (again 700gbp/pa )
That would make 51yrs of contributions to get the new full SP
Your pension will be a hybrid of old and new style with you being able to get the best of both worlds.0
This discussion has been closed.
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