Will everyone be notified of their foundation amount in 2016?

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
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gterrgterr Forumite
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As title, really. Will everybody receive a notification after April 2016 which will tell them their foundation amount (for the single-tier state pension), plus details of how extra entitlement might be built up, or do we have to request this information ourselves after April 2016?
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  • edited 30 April 2014 at 10:49AM
    SnowManSnowMan Forumite
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    edited 30 April 2014 at 10:49AM
    We will have to wait and see I think.

    There was talk that we would have to request it, which I find quite shocking. See this article

    http://www.corporate-adviser.com/news-and-analysis/latest-news/public-wont-be-told-single-tier-foundation-amount-unless-they-ask/2005150.article
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  • greenglidegreenglide Forumite
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    But imagine the confusion if they sent out details of the foundation amounts for millions and millions of people!

    The have never had the simple concept of sending out NI contributions to everyone, why should they change now.

    Only a tiny proportion of people will know what "foundation amount" is and why the amounts would be different between a husband and wife etc and very few people would understand if it mattered.

    I does seem sensible to send a pension forecast to everyone (more important that just the Foundation Amount IMHO) on a regular basis (every 3 years or so?). We have the Combined Forecasts provided to pension suppliers and there was a programme to send everyone an Automatic Pension Forecast back in 2005 / 2006. Surely what we should do is resurrect that (but it did cost a lot of money
  • SnowManSnowMan Forumite
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    I had assumed initially they would send out a one off statement to everyone around 2016 based on the example on page 101 of the single tier pension a simple foundation for saving report

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181229/single-tier-pension.pdf

    That document looks reasonably clear to me.

    If people are to engage with the process of planning for their retirement then surely everyone needs this information.
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  • greenglidegreenglide Forumite
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    SnowMan wrote: »
    If people are to engage with the process of planning for their retirement then surely everyone needs this information.

    True, so true.

    The Automatic Pension Forecast sent to "everything" around 2005 / 2006 was supposed in part to fulfill that as well (I seem to recall - it was a while ago!). I have never understood the reluctance of HMRC (Contributions Agency as was) and DWP to keep people informed of their contributions record - my contributions from 1972 are still relevant as my foundation amount will be above the STP amount and the GRAD matters?
  • SystemSystem Forumite
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    Why isn't it possible to register for on-line NI and pensions like any other pension or savings provider?
  • PeacefulWatersPeacefulWaters Forumite
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    Why isn't it possible to register for on-line NI and pensions like any other pension or savings provider?


    Don't suggest things like that.

    They'll spend £5bn of taxpayers' money trying to build it and then fail.
  • greenglidegreenglide Forumite
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    That is what is happining for STP isn't it:-)

    I reach SPA in May 2016 and am seriously worried that the new STP platform will turn out like Universal Credit.

    The option of deferring loses its shine as well :-(
  • atushatush Forumite
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    I think sending stuff out willy nilly to last address could be a problem esp as regards, identity fraud. As the NI record would have their number and other details.

    Int he US, SS number is sacrosanct (and you aren't supposed to divulge your number willy nilly and not carry your card) as with the number your are halfway to getting new docs.
  • JohnB47JohnB47 Forumite
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    greenglide wrote: »
    That is what is happining for STP isn't it:-)

    I reach SPA in May 2016 and am seriously worried that the new STP platform will turn out like Universal Credit.

    The option of deferring loses its shine as well :-(

    Deferring after April 2016 won't be as attractive anyway, apparently. Half the current increase per year deferred, I believe.
  • gterrgterr Forumite
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    The formula given on page 47 of the DWP's Single Tier Pension explanatory document cited by Snowman:
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181229/single-tier-pension.pdf

    gives the 'single tier valuation' as

    ((number of pre-implementation years / 35) x144) minus rebate derived amount

    So, someone with 40 years should have
    ((40/35) x 144) - rebate derived amount
    and not
    ((35/35) x144) - rebate derived amount

    So, as has been suggested elsewhere, years in excess of 35 pre-2017 that are not contracted-out might mitigate the effects of contracted-out years.

    So far so good, but then the first worked example in the DWP document ("Liz") seems to contradict this, since Liz has 36 years with none contracted out, yet her single-tier valuation is given by
    (35/35) x 144, leading to a Foundation Amount of £144, and not the expected
    (36/35) x 144, or £148.11

    This is why I am so confused - and that's before we start speculating about what, exactly, the 'rebate derived amount' might turn out to be. I am self-employed, 58 and on the verge of retiring. I have 36 years, some of which are Class 2s and some are contracted-out years. I don't know how many years are contracted-out, and I don't know if it's worth my while trying to stay in self-employment for a few more years to try to reach this Holy Grail of £144 per week. I have a recent pension forecast but this was done according to existing arrangements and suggests I will get a trifle over £107 under the 'old rules'.

    I will certainly be wanting my Foundation Amount estimate at the earliest convenience.
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