State Pension in 5 years time and NI

gadgetmind

But this deduction is just to the single tier calculation, so where does the S2P come in?

mumps

mumps wrote: »

In case anyone is thinking of getting a forecast I phoned to request mine this morning and apparently for me it is going to take up to 30 days to get it. I am not sure if this applies to everyone, I am a woman born in 1953 so I think our calculations are more complicated as the retirement age for women will be changing every 3 months so it has to be calculated by hand, the computer can't do it. I am not sure if that explanation is right but it is something like that, I think I went into a trance when it was all being explained.

In case anyone is interested I got my statement today so over the ten days but not 30 days. The disappointing thing is that I still don't know how much I will get. It states that a deduction has been made as I was contracted out of the S2P but then says that it may be less if i was contracted out. So here I am an 61 years 4 months still working and still not knowing how much my pension will be.

The forecast difference between the old and new system is bigger than I expected but I think that is because I have still got over three years till retirement so it might change? Not sure and I don't think it is very well explained in the statement.

They suggest in the letter that I apply for another statement next year but I don't know if that will give me a more accurate forecast.

mumps

mumps wrote: »

I think my pension under the old rules will be about the same as the new pension £150 ish but I will be interested to see.

I was only £2 out on old system but £40 difference on new system. Quite a big difference.

bilbo51

mumps wrote: »

The disappointing thing is that I still don't know how much I will get. It states that a deduction has been made as I was contracted out of the S2P but then says that it may be less if i was contracted out. So here I am an 61 years 4 months still working and still not knowing how much my pension will be.

It is disappointing isn't it? One of the political themes in introducing the new poorly named 'flat rate' state pension was that it would give everyone certainty as to what they would get - there was too much confusion in the old, out-dated, very complex Basic+SP+Graduated+SERPS+S2P scenario yada yada.

Now it's impossible to find out what pension you will be awarded post April 2016. The .gov.uk pension 'statements' (no longer called 'forecasts', I note) are couched in CYA terms that purely serve to obfuscate the matter. Sir Bernard Humphrey would be proud.

gadgetmind

bilbo51 wrote: »

the new poorly named 'flat rate' state pension

The relevant documents all say "single-tier" but it's also worth noting that "flat rate" suggests everyone earning pension at the same rate rather than everyone getting the same amount.

greenglide

mumps wrote: »

In case anyone is interested I got my statement today so over the ten days but not 30 days. The disappointing thing is that I still don't know how much I will get. It states that a deduction has been made as I was contracted out of the S2P but then says that it may be less if i was contracted out. So here I am an 61 years 4 months still working and still not knowing how much my pension will be.

The forecast difference between the old and new system is bigger than I expected but I think that is because I have still got over three years till retirement so it might change? Not sure and I don't think it is very well explained in the statement.

They suggest in the letter that I apply for another statement next year but I don't know if that will give me a more accurate forecast.

Once the new State Pension is with us from April next year the details of what everyone has accrued to date (this is what the "statement" gives you, it is not forecast forwards any more) will be "cast in stone" as the Starting Amount for everyone at 2016 prices will have been calculated. This will be revalued with inflation but you will earn no more.

So the statement will be accurate then.

The current statement is subject to change, as it always has been, because of the GMP / COD relationship changing which leads to the wording on the letter. Any change will not be large.

bilbo51

gadgetmind wrote: »

The relevant documents all say "single-tier" but it's also worth noting that "flat rate" suggests everyone earning pension at the same rate rather than everyone getting the same amount.

Yes, I agree - and take your point. But the message which seems to have got across to the man in the street is that ("Hooray!") he's going to get £150 a week. The number of cries of horror/dismay/indignation on this board when reality sinks in bears witness to that.

gadgetmind

bilbo51 wrote: »

the message which seems to have got across to the man in the street

Well, said man should read the relevant documents rather than trashy newspapers, where the journalist probably hasn't even read the documents and is just recycling bilge.

mumps

greenglide wrote: »

Once the new State Pension is with us from April next year the details of what everyone has accrued to date (this is what the "statement" gives you, it is not forecast forwards any more) will be "cast in stone" as the Starting Amount for everyone at 2016 prices will have been calculated. This will be revalued with inflation but you will earn no more.

So the statement will be accurate then.

The current statement is subject to change, as it always has been, because of the GMP / COD relationship changing which leads to the wording on the letter. Any change will not be large.

Thanks for explaining, I hope you are right about any change not being large but I am afraid I don't really know anything about the GMP/COD and how that affects my pension. On the old system it shows me getting almost £149 per week and it does say deductions have been made for when I was contracted out. Oh well I suppose I will know more next year. It does make it hard to plan. My SP age has changed twice, the second time very close to when I planned to retire as I had made provision to still retire at 60 although I wouldn't get my SP then. It left me too little time to make further changes and now I still don't know what I am going to get. As I said before I hope you are right about any changes being small.

greenglide

On the old system it shows me getting almost £149 per week and it does say deductions have been made for when I was contracted out.

So your Old Rules Amount is greater than your New Rules Amount giving you a Starting Amount of around £150 (there is at least one year to go.

The adjustment for GMP / COD will probably be a couple of pounds or so.

With that much AP (to have got you to that figure) you must have been not contracted out for a reasonable part of your working life?

What was your New Rules Amount?