My State Pension Statement - confused!

rogermhunt

I left employment early and decided to take my company pensions. I'm now nearly 63 years old.
Like many, I decided to request a State Pension Statement and I received this yesterday.
I understand that during my employment life, a large portion of it was contracted out of the state scheme and therefore I would not expect to get the full new State Pension upon retirement.
I also understand that it could be beneficial for me to make voluntary payments into the scheme to allow a bigger overall state pension.

However, the thing that's confused me is the statement itself:

It estimates that my State Pension will be £123.33 per week, based on 40 qualifying years (although I believe I have 42 qualifying years, but that's another issue).
Because I was contracted out of the additional State Pension they have made a deduction of £73.92 per week.

They have used £151.25 per week as the full rate state pension for their calculations.

So, finally getting to my point, if the state pension rate is £151.25 per week and they've made a deduction of £73.92 per week for their calculations, how come my estimated state pension will be £123.33 per week?

Please can you advise what I've overlooked?

Many thanks

kidmugsy

Dunno. But the discrepancy in the number of years may not be a big deal because 35 are enough. Though perhaps it might be worth checking the number of years you've had contracted in.

atush

It is because todays statement is under the old rules, not the new rules.

And you will get the higher of the two at the changeover- also known as your 'foundation' amt. It will be 123.33 a week (plus maybe a smidge more due to inflation in this next year but use that figure for your planning).

The amt of 151.25-73.92 will be smaller so you'll get the foundation amt. There could be an opportunity to buy more SP, and if you take on any work after april next year to earn more SP.

But that is why your figures are different. as you get the better of the old or new rules on the changeover date as your foundation amt.