state pension confusion

etienneg

Is there a web site that explains clearly how state pension is calculated? I've looked at the government site and just find it confusing. My wife will become eligible for state pension in November this year. She has a complicated history of full-time earnings, at home bringing up children, part-time earnings and so on. I want to see what her entitlement will be. I know about pension forecasts, but want to have some way of checking what we find when we get one of these.

redbuzzard

Are you aware that you can get a forecast? As your wife is to retire before 2016, her pension will be paid under the "old" system and unless things have changed very recently, you can get a forecast online.

https://www.gov.uk/state-pension-statement

Is that going to answer your questions, or are you wanting to check their calculations?

etienneg

My last sentence contains a clue: "I know about pension forecasts, but want to have some way of checking what we find when we get one of these."


Basically I want to know how to calculate how many years of "contributions" she has, including rules about time off for child care, reduced NI contribution rate, working for part of a tax year, and so on.

mgdavid

You can get a statement of NI Contributions (and credits e.g. childcare years) as well as a Pension Forecast.

https://www.gov.uk/check-national-insurance-record

Apologies if you use google and already know this.

McKneff

etienneg wrote: »

My last sentence contains a clue: "I know about pension forecasts, but want to have some way of checking what we find when we get one of these."


Basically I want to know how to calculate how many years of "contributions" she has, including rules about time off for child care, reduced NI contribution rate, working for part of a tax year, and so on.

Your first paragraph is extremely rude and facetious.
The poster was trying to help you and you come back with this.
We are told to be nice to newbies, its people like you who make it difficult.
If people who can potentially help with their knowledge, they will think twice if you are going to react like this.


You cant calculate it. The Pension service will do it.
And send your wife the forecast.

redbuzzard

etienneg wrote: »

My last sentence contains a clue: "I know about pension forecasts, but want to have some way of checking what we find when we get one of these."

Apology. I don't recall reading that part. Anno domini, I expect.

Well, it is the pensions forum.

etienneg

McKneff wrote: »

Your first paragraph is extremely rude and facetious.
The poster was trying to help you and you come back with this.
We are told to be nice to newbies, its people like you who make it difficult.
If people who can potentially help with their knowledge, they will think twice if you are going to react like this.


You cant calculate it. The Pension service will do it.
And send your wife the forecast.

Oh dear! I'm sorry to have upset you so! I hope this reply doesn't make things worse.


Had I intended to be rude, I could have called redbuzzard names, or made derogatory comments about reading skills or the like. Did I do either of these things? No, of course not! That's because I never intended to be rude. I suppose the written word lacks any hint of voice nuance or body language, so it may be that my intention of light-hearted humour missed the mark by a mile. Anyway, I hope that you and redbuzzard will accept my apologies.


As regards the rest of your reply, might I ask why I can't calculate it? I know the Pension Service will do it. But how will I have a clue whether what they produce is right or not if I don't understand the basis on which their calculations are made? That's the information I am after.


For example, if she paid NI for most of a tax year but not the whole of it, does this count at all or is it completely ignored? This becomes significant when you go in and out of employment several times. Or, what is the effect of paying reduced NI contributions as a married woman? Or again, for how long can receipt of child benefit count? And so on ...

greenglide

but want to have some way of checking what we find when we get one of these.

To calculate what you think the entitlement "should be" is immensely complex.

You would need to know full details of the working history and copies of all P60s. Periods of HRP if claiming Child Benefit etc, contracted out details etc.

When you came to a different answer to HMRC / DWP (it is HMRC that hold the data and do a lot of the calculations) you wouldnt know what caused the difference to dispute it.

Start with the qualifying years information that mgdavid linked to and go from then.

You could always do a Data Protection request to HMRC for the personal data held on the NPS system (previously NIRS2). I knew a lot of people who did this when the NIRS system was replaced by NIRS2 and people were seriously worried about all the data being lost. The amount of paper generated by these requests was mid-boggling!

xylophone

Basically I want to know how to calculate how many years of "contributions" she has, including rules about time off for child care, reduced NI contribution rate, working for part of a tax year, and so on.

See below - good luck!;)



https://www.gov.uk/state-pension/eligibility

https://www.gov.uk/home-responsibilities-protection-hrp/overview

http://www.rights4seniors.net/content/other-state-pension-payments

http://en.wikipedia.org/wiki/State_Earnings-Related_Pension_Scheme


http://en.wikipedia.org/wiki/State_Second_Pension

In contracted out Defined benefits Scheme 1978-97?

https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

Contracted Out Deduction https://www.whatdotheyknow.com/request/13730/response/33859/attach/html/2/VTR%201237%20P%20White.doc.html

https://forums.moneysavingexpert.com/discussion/comment/60319901#Comment_60319901
post 18.

greenglide

For example, if she paid NI for most of a tax year but not the whole of it, does this count at all or is it completely ignored? This becomes significant when you go in and out of employment several times. Or, what is the effect of paying reduced NI contributions as a married woman? Or again, for how long can receipt of child benefit count? And so on ...

You need to know all the rules and regulations that have been put in place over the last 40 years to do this.

The MWRRE (small stamp) does not count towards qualifying years so you can ignore all those years.

A year is a qualifying year if, in a single employment, you have earned an amount equal to or greater than the lower earnings limit (52 times the weekly amount). This does not mean you have to have paid NI for each week / month - you could have paid none at all (NI only paid on earnings > the earnings threshold) and you could pay NI for several individual weeks / months but the average over the year is under the limit.

Google is your friend but there is obviously much to learn if you are to do this.

I have been involved in IT for payrolls, tax, NI calculations and pensions (private and state) for my whole working life. I wouldnt undertake this for myself - it would take longer than the time I have left to reach SPa!

mgdavid

etienneg wrote: »

...... But how will I have a clue whether what they produce is right or not if I don't understand the basis on which their calculations are made? That's the information I am after.
..... ...

you could do worse than start by reading post #4.