Difference in pension entitlements if born before or after April 1951

littlerock

Can someone outline for me the difference in state retirement pension a UK male with full contributions record will get if he was born in
January 1951 or May 1951?

Will those with an earlier birth date be £35 week worse off than those with the later one?

And a second question, if someone born in say January 1951 defers taking their pension, will their final pension be based on the new or the old scheme ?

Linton

The difference between reaching state pension age just before April 2016 and just after April 2016 is a little complex.

1) If you had 35 years NI and if there was no SERPS/SSP entitlement then the later date would gain you about £35 or whatever.

2) If you have SERPS/SSP entitlement of at least £35 then the pensions would be the same.

Deferring State Pension makes no difference, its based on State Pension Age.

Alter_ego

The only way to be reasonably sure is a pension forecast.
But don't be surprised to find the forecast is not what you actually get.

littlerock

What if you had no serps entitlement (due to being freelance mostly) and so only basic contributions for 35 years and were born in January 1951? You would then be £35 week worse off than someone born in May 1951?

Also I thought I read that if you were born before 4 April 1951 you got larger rate of interest for deferring than if you were born after that date.?

molerat

Retire pre 2016 with only basic SP of £113 then pension credit will make it up to £148.
Retire post 2016 and receive basic pension of £148.

Alter_ego

littlerock wrote: »

What if you had no serps entitlement (due to being freelance mostly) and so only basic contributions for 35 years and were born in January 1951? You would then be £35 week worse off than someone born in May 1951?

Also I thought I read that if you were born before 4 April 1951 you got larger rate of interest for deferring than if you were born after that date.?

You are correct re deferring. 10.4% before 5.?% after.
About your entitlement, it's complex. a forecast really is the way to go.

bigfreddiel

molerat wrote: »

Retire pre 2016 with only basic SP of £113 then pension credit will make it up to £148.
Retire post 2016 and receive basic pension of £148.

You only get pension credit if you qualify - if you have savings you probably won't qualify.

And post 2016 if you were contracted out of SERPS/s2p then you won't be getting any where near £148

Best to get a quote

Cheers fj

kidmugsy

It's a wonder that one of the papers hasn't dug up a pair of twins born on different sides of midnight, and screamed about the scandal of their getting different pensions.