Unexplained Pension Forecast

goodValue

I am due to get start getting my state pension next year, a couple of months after the new system comes into force.
I have just received my forecast, but it has so little information that I don't know if I can take any action about it.
The estimate is for £119.22 a week based on NI contributions up to 2014/2015 which shows 31 qualifying years. That is the only data given; there is no explanation of the calculation or of which method was used.
Am I correct in saying that, if the old method of calculation was used, I cannot improve my pension as I already have more than the maximum 30 qualifying years?
Alternatively, is it true that if the new method of calculation was used I will be able to boost my pension by buying extra qualifying years?

[Deleted User]

Hi,

sorry, can't help with answer, but maybe this will help.

xylophone

See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf


https://forums.moneysavingexpert.com/discussion/5217556

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/424121/dwp040b-apr-2015.pdf

You have never been contracted out?

greenglide

So you got one of the simplified ones which my wife got as well, it tells you very little.

However, it does tell you whether the starting amount is calculated under the old system or the new rules.

From the little information you have given you must have had a significant gap in your employment history to only have 31 years.

It is also likely that you have been in contracted out employment otherwise you would have accumulated a reasonable of additional pension from SERPS / S2P.

atush

Plus if you work until you retire, you will have 32 years so will be bumped up a little?

goodValue

Thanks for the prompt responses.

There's a lot of information in the responses and it might take me some time to go through it as I only have limited access to the internet.

I believe I was contracted out for 8 years in the 1980's, and maybe for a couple of years of part time work around 2010.

I searched the estimate to see if it was under the old or new rules but could find nothing about it. I'll have another look through the paperwork.

Yes, I've had a checkered job history due to ill-health, taking temporary jobs and looking after a sick relative. But I thought that 31 years would give me the maximum amount under the old rules.

I can't say if the amount included any additional pension - there was only the one figure for the total weekly amount.

xylophone

The link in my post above

Your State
Pension statement
explained
This leaflet is for men
born on or after
6 April 1951 and
women born on or
after 6 April 1953.
April 2015

refers to the statement showing a summary and breakdown, which are supposed to show the total amount you would receive under current rules and the way that amount is made up.

Yours would appear to show a full current basic state pension (£115.95 a week) plus some graduated pension (if you were working before 1975) and/or additional state pension.

Read the information in the links in my first post.

Are you expecting/receiving an occupational pension? What is the GMP position?

goodValue

I've had another look through the pension estimate and
found the following in the opening paragraph:

"You asked for an estimate of your State Pension based on
the rules of the new State Pension that start on 6 April 2016"

I calculated what the pension should be with the new rules
(31/35 of £151.25) and got £133.96. So it looks like a reduction
of £14.74 has been made to get to the final value of £119.22.

I didn't ask for an estimate based on the new rules, so are they
just calculating with just the new method now?

molerat

The figure you have been given is the foundation amount which is the higher of either the old rules calculation or the new rules calculation. You don't really need to know which calculation has been used just the amount you will be getting. The new less confusing statement is obviously more confusing

greenglide

Yes, it is.

They may be hoping than more people didnt understand the (slightly) more detailed one that they used to send than just sending "it will be £123.99" and people lust accept it.

We need to know! Maybe we ought to be able to choose between the 1) very simple, just the amount, 2) medium some details and 3) complicated, you need to understand how State Pension works!

I would opt for 3 of course!

xylophone

Are you expecting/receiving an occupational pension?

If so, what is the GMP position?