State Pension reform SP2 - what happens to it

Baldyman1

Ok I'm a doing a little future financial planning at the moment am I'm discovering concerns over my state pension - don't worry I'm not relying solely on this when I do retire.

So pension reform is about to start next year but my question relates to how my existing state ensign will be transfered over .

I have a few question please ..I'm 45 and have a retirement age of 67

1. I have 29 years worth of N.I contributions so at 45 means that started when I was 16 years of age - about right as I joined the royal Navy as a junior . So when pension reform starts it says 35 years worth of N.I contributions from 19 years of age not 16 , so to me that means from next year I will still have to contribute another 8 years ? Can someone confirm this ?

2. Using the government gateway site it says that my current state pension entitlement is £109.33 a week this would have gone up to the current full state pension of £113.10 a week next year when I had 30 years worth of N.I contributions- ok this will change I understand that

However (this is my major concern ) what will happen with my additional stcontricontributions a have made . Currently my Additional State Pension and Graduated Retirement Benefit is £38.15 a week -Do I loose it or do I get this in addition to the new £150 stay pension ?

molerat

Next year you will be given a starting amount which is the higher of the new or old system calculations. From 2016 onwards you will be able to add to this up to the maximum of the new pension amount. What is the total figure you were given - including additional pension as this will be your starting figure plus anything earned up until the start of the new system.

Baldyman1

£147.48 a week was the total amount

Baldyman1

molerat wrote: »

Next year you will be given a starting amount which is the higher of the new or old system calculations. From 2016 onwards you will be able to add to this up to the maximum of the new pension amount. What is the total figure you were given - including additional pension as this will be your starting figure plus anything earned up until the start of the new system.

£147.48 a week , you confused me .

drumtochty

If we use what is know today the flat rate pension if it was paid today would be £148.40.

At the April 2016 you will at todays rate have around £113.10 basic state pension plus at a guess say another £ 5 in second state pension and your existing second state pension of circa £38.15.

That would make your existing state pension including second state pension etc around £156.25 which is £7.85 above the best illustration we have of the flat rate pension.

Both these figures will have inflation added on 6 April 2016.

Therefore your foundation amount will be £156.25 and as this is above the flat rate state pension you will not receive any increase to that apart from inflation between 6 April 2016 and when you retire at 67 or whatever age it will be then.

drumtochty

If it makes you feel any better, I thought your second sate pension would be added to the flat rate pension but that is not the case and you could have found that out by reading the pension white paper in Januart 2013.

molerat

drumtochty wrote: »

.......
you will not receive any increase to that apart from inflation between 6 April 2016 and when you retire at 67 or whatever age it will be then ......

The amount equivalent to the new full SP will be increased by the triple lock (or any other scheme they come up with)and any additional amount will be increased by CPI so there will, as now, still be 2 parts to the pension each being handled seperately.