New State Pension - confused

malc_b

I have an old pension statement which says 38yr (to Apr 14) and I'll get a basic of 113.10 plus some graduated which gives a total of >148. Am I right in that I will get this higher amount, and even if I work more and pay more NI I won't get anything more? That is, there is no advantage to continuing to work over retiring?

My wife's figures are 35yrs (to Apr2014), basic of 113.10 plus some graduated but total < 148. In this case does she gain and get 148? And also does she not gain any more pension by continuing to work?

Also, these statement containing a warning that they may not be accurate if you were contracted out - how can you check this?

JezR

You: will continue to earn second state pension until nSP starts. As you seem to be over the nSP full amount with all your additional pensions (not just graduated which was only on contributions from 1961-1975) that will be the amount you will receive in due course with appropriate valorisation.

Wife: She will also continue to earn second state pension until the start of nSP. If she is above the single tier max figure by then, she will be in the same position as you. If she is below, she would accrue an additional 1/35 of the single tier per year of contributions, until she reaches the maximum point.

You cannot check a completely accurate final amount as it may depend upon variables that cannot be known in advance relating to your GMP / COD such as inflation or general wage increases in the intervening years. In reality this should not be that great either way, depending on how close you are to retirement (you don't state the age of either of you).

Alter_ego

JezR wrote: »

You: will continue to earn second state pension until nSP starts. As you seem to be over the nSP full amount with all your additional pensions (not just graduated which was only on contributions from 1961-1975) that will be the amount you will receive in due course with appropriate valorisation.

Wife: She will also continue to earn second state pension until the start of nSP. If she is above the single tier max figure by then, she will be in the same position as you. If she is below, she would accrue an additional 1/35 of the single tier per year of contributions, until she reaches the maximum point.

You cannot check a completely accurate final amount as it may depend upon variables that cannot be known in advance relating to your GMP / COD such as inflation or general wage increases in the intervening years. In reality this should not be that great either way, depending on how close you are to retirement (you don't state the age of either of you).

Sounds far too simple to me!

atush

Sounds simple to me lol.

You will continue to earn s2p until april 2016. Then it may no longer pay to keep working NI wise.

I guess that will depend on if you have saved enough into private pensions to completely retire?

jamesd

The deductions for being contracted out depend on the exact years when the contracting out happened. For around the last fifteen years there wouldn't be a deduction from the current rules calculation and it's the current rules calculation that will give the higher foundation amount in these two cases.

malc_b

I'm not sure if I or my wife were contracted out at any time. Not contracted out since '96 for certain. Nor do I know what years the extra pension comes. We are both 58.

What I don't understand is why the pension forecast doesn't know if we were contracted out or not. Surely it is looking up our record to create the forecast and if it isn't in our record then how do they know what pension to pay you?

Does anyone know what the S2P increase by per year. I realise pay comes into it but it seems like you 40% up to tax threshold and 10% after so there should a be base £x extra per week per year of working plus £y per £1000 of taxable salary, per week per year of service formula.

Update: I found something that says S2P up to LET is £92 pa so £1.77 pw I think.