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  • FIRST POST
    • Jack Itin
    • By Jack Itin 7th Dec 17, 1:39 PM
    • 250Posts
    • 118Thanks
    Jack Itin
    State Pension Forecast Query
    • #1
    • 7th Dec 17, 1:39 PM
    State Pension Forecast Query 7th Dec 17 at 1:39 PM
    O.k.....I have just joined the Gov. Gateway, and obtained my state pension forecast.......it says £148.06 per week if one short year is paid up......or £143 .49 per week if not.....I don't understand this as I have over 40 years fully paid NI contributions, the other thing I don't understand, is that although years 2015/16 are not full (I took early retirement in 2015).....years 2016/17 are full, but I wouldn't have paid anything.....can anyone explain please......Jack.
    Last edited by Jack Itin; 07-12-2017 at 3:21 PM.
    Retired (Early) April 2015
Page 1
    • molerat
    • By molerat 7th Dec 17, 1:46 PM
    • 17,464 Posts
    • 11,683 Thanks
    molerat
    • #2
    • 7th Dec 17, 1:46 PM
    • #2
    • 7th Dec 17, 1:46 PM
    Re the the paid up 2016-17 year - how old are you ? https://www.gov.uk/automatic-pension-credits-for-men

    At April 2016 a calculation was done to give you a new pension scheme starting amount of no less than your existing pension transitioning into the new system which made years a bit irrelevant and gave you the opportunity to top up your old system pension going forward. As you have more than 35 pre 2016 years do not be tempted to pay up any missing or part paid pre 2016 ones as they will not add to your pension.
    Last edited by molerat; 07-12-2017 at 1:54 PM.
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    • Jack Itin
    • By Jack Itin 7th Dec 17, 1:57 PM
    • 250 Posts
    • 118 Thanks
    Jack Itin
    • #3
    • 7th Dec 17, 1:57 PM
    • #3
    • 7th Dec 17, 1:57 PM
    Thanks for that, I will be 65 in April......that explains the years 2016/17 being paid up.....so what will I actually get , £148.05 or £143.49 ?.....Jack.
    Retired (Early) April 2015
    • molerat
    • By molerat 7th Dec 17, 2:04 PM
    • 17,464 Posts
    • 11,683 Thanks
    molerat
    • #4
    • 7th Dec 17, 2:04 PM
    • #4
    • 7th Dec 17, 2:04 PM
    Your statement should give you a current amount "NI record up until April 2017" and a maximum you can achieve amount. If you are 65 after April 6th then you will also be credited with 2017-18 which will add the extra bringing you up to the £148.05.
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    • Jack Itin
    • By Jack Itin 7th Dec 17, 2:20 PM
    • 250 Posts
    • 118 Thanks
    Jack Itin
    • #5
    • 7th Dec 17, 2:20 PM
    • #5
    • 7th Dec 17, 2:20 PM
    Ahh, it makes sense now.......I will be 65 on April 30th.....thanks for your help, no doubt I will be back........Jack.
    Retired (Early) April 2015
    • Jack Itin
    • By Jack Itin 8th Dec 17, 1:34 PM
    • 250 Posts
    • 118 Thanks
    Jack Itin
    • #6
    • 8th Dec 17, 1:34 PM
    • #6
    • 8th Dec 17, 1:34 PM
    O.k.....I have seen somewhere that the state pension is nearly £160 a week......I have 47 full years of NI payments, how come my forecast is only £148.05 per week ?........Jack.
    Retired (Early) April 2015
    • Dazed and confused
    • By Dazed and confused 8th Dec 17, 2:09 PM
    • 1,936 Posts
    • 872 Thanks
    Dazed and confused
    • #7
    • 8th Dec 17, 2:09 PM
    • #7
    • 8th Dec 17, 2:09 PM
    Only the "new" State Pension is nearly £160 and that amount only applies for certain to those who will have spent their whole NIC lifetime under the new system.

    There are countless threads about this already. You aren't losing anything, you are guaranteed to get what you were already expecting under the old rules or more.
    • Linton
    • By Linton 8th Dec 17, 2:10 PM
    • 8,603 Posts
    • 8,564 Thanks
    Linton
    • #8
    • 8th Dec 17, 2:10 PM
    • #8
    • 8th Dec 17, 2:10 PM
    O.k.....I have seen somewhere that the state pension is nearly £160 a week......I have 47 full years of NI payments, how come my forecast is only £148.05 per week ?........Jack.
    Originally posted by Jack Itin
    Probably because you were contracted out of SERPS/S2P because of your employer's pension and paid lower NI contrinbutions.
    • Jack Itin
    • By Jack Itin 8th Dec 17, 2:33 PM
    • 250 Posts
    • 118 Thanks
    Jack Itin
    • #9
    • 8th Dec 17, 2:33 PM
    • #9
    • 8th Dec 17, 2:33 PM
    Yes, I did wonder about being contracted out......so although we were encouraged to join private schemes back then , we are now to be penalized for doing so ?........Jack.
    Retired (Early) April 2015
    • Linton
    • By Linton 8th Dec 17, 2:37 PM
    • 8,603 Posts
    • 8,564 Thanks
    Linton
    Yes, I did wonder about being contracted out......so although we were encouraged to join private schemes back then , we are now to be penalized for doing so ?........Jack.
    Originally posted by Jack Itin
    Not necessarily penalised - your private scheme could well be more valuable than the missing SP.
    • Jerben
    • By Jerben 8th Dec 17, 2:39 PM
    • 57 Posts
    • 27 Thanks
    Jerben
    Jack,
    No. As D and C said,
    'There are countless threads about this already. You aren't losing anything, you are guaranteed to get what you were already expecting under the old rules or more.'
    • Jack Itin
    • By Jack Itin 8th Dec 17, 6:12 PM
    • 250 Posts
    • 118 Thanks
    Jack Itin
    Thank you for the replies.....I have 4 and a half months to go until I am 65, so thought I would start looking into things now........as usual these forums are a great help.......Jack.
    Retired (Early) April 2015
    • xylophone
    • By xylophone 8th Dec 17, 6:21 PM
    • 23,613 Posts
    • 13,748 Thanks
    xylophone
    Is a COPE shown on your forecast? I seem to remember that you are in receipt of a DB pension and were contracted out.

    At 6/4/16 two calculations were done

    Old rules

    Full BSP (£119.30) + (Additional State Pension minus Contracted Out Deduction.)

    New Rules

    Full NSP (£155.65)- COPE

    Your starting amount was the higher of the two.
    • Dazed and confused
    • By Dazed and confused 8th Dec 17, 8:03 PM
    • 1,936 Posts
    • 872 Thanks
    Dazed and confused
    Whilst you were contracted out were you expecting to get £140+ or the basic state pension of £120 or so?

    Really do think you're looking at this from the wrong perspective. No one is getting less under the "new" state pension rules, you either get the same or more.

    The general consensus on similar threads is that people who have been contracted out are in a win win situation. Lower NI contributions for years and then the opportunity to get the "new" state pension amount simply by paying the normal NI amounts for a relatively small number of years.

    Unless you can tell us what your state pension forecast was prior to April 2016 you will struggle to get many people to see you as having been penalized.
    • Jack Itin
    • By Jack Itin 9th Dec 17, 10:22 AM
    • 250 Posts
    • 118 Thanks
    Jack Itin
    Yes it says my COPE estimate is £48.33 a week.....and it says "this will not affect your pension forecast".......now I am confused......Jack.
    Retired (Early) April 2015
    • Dazed and confused
    • By Dazed and confused 9th Dec 17, 10:38 AM
    • 1,936 Posts
    • 872 Thanks
    Dazed and confused
    The reason it says "this will not affect your pension forecast" is because it will not affect your pension forecast.

    You start at April 2016 with two figures which are, in very simple terms,
    A. The amount you were always expecting to get had there been no changes
    B. An amount which takes into account a mythical value, called COPE, associated with your contracted out pension

    Whatever is higher at that point is your starting amount.

    You can then completely forget about COPE as it is irrelevant (unless your company pension is going to be less than the COPE value but I don't think anyone who has ever posted on here has ever been in that position).

    Where you are in a win win position is that you take your starting amount and can add to that with every post April 2016 qualifying year.

    So someone contracted out all of their life might have two figures
    A. £120
    B. £80

    But being generous the government decided that rather than allow you to build up B with future years and allow you to get the final amount of B + additional years (or A if that was still higher at state pension age) they would forget all about B and what you actually get is A plus any additional post April 2016 years.

    So you benefit from lower NI pre April 2016 and the ability to get up to (if you're not too close to state pension age) the "new" state pension amount of £160.
    Last edited by Dazed and confused; 09-12-2017 at 10:42 AM.
    • xylophone
    • By xylophone 9th Dec 17, 10:50 AM
    • 23,613 Posts
    • 13,748 Thanks
    xylophone
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

    Read the above but for BSP read £119.30 and for NSP £155.65.
    • Jack Itin
    • By Jack Itin 9th Dec 17, 12:21 PM
    • 250 Posts
    • 118 Thanks
    Jack Itin
    Thanks for the replies......I understand it a little better now.......Jack
    Retired (Early) April 2015
    • Jack Itin
    • By Jack Itin 9th Dec 17, 3:49 PM
    • 250 Posts
    • 118 Thanks
    Jack Itin
    O.k. Sorry to be a pain, but just one more question.....for now......my retirement date is 30th April, which is a Monday....my payment day seems to be a Wednesday, if the NI no. last two digits thing is still in use.....is it right then that I will be paid on the 9th of May ? as they don't pay part weeks, and if so how much ?.....a full month, or just that first week ?......Jack.
    Retired (Early) April 2015
    • p00hsticks
    • By p00hsticks 9th Dec 17, 4:13 PM
    • 5,772 Posts
    • 5,545 Thanks
    p00hsticks
    O.k. Sorry to be a pain, but just one more question.....for now......my retirement date is 30th April, which is a Monday....my payment day seems to be a Wednesday, if the NI no. last two digits thing is still in use.....is it right then that I will be paid on the 9th of May ? as they don't pay part weeks, and if so how much ?.....a full month, or just that first week ?......Jack.
    Originally posted by Jack Itin
    It depends how you ask to be paid.

    Assuming you mean 30th April 2018, you should be getting a letter from DWP shortly asking you to apply for your pension. (note that you don't have to if you are still working and don't need the money - if you don;t your pension will be deferred and you will get a higher weekly sum when you do fginally decide to claim it).

    The default is to be paid four weekly in arrears. Going by my OH's recent experience, I think you may get an initial small adjustment sum to cover the first few days shortly after your retirement date, and then a full four weeks worth about a month later. Then four weekly from that point forward. They'll write to tell you exactly when you can expect the payment.

    If you prefer to be paid weekly, then you can - but it's not an option offered directly. If you want this, I believe you need to put in your claim by phone rather than post/online, and specifically request a weekly payment
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