New State Pension starting amount and full record of qualifying years- trial service

p00hsticks

Pennylane wrote: »

Not sure you're right. I'd read about this £155.65 amount but if you look at my example up the page that's not even mentioned. they reckon only 1 in 3 people will get the full 155.65 anyway.

You can't add to it either if you're over a certain age.

You can add years up to the year you reach State Pension Age.
So in your case, with a current statement amount of £149.51, and a SPA of July 2018, you should be able to increase to the maximum amount if you wish by working or buying NI years 2016-17 and 2017-18.

I can't comment on whether your £149.51 figure has been reached using the old rules or new.

teralin

My SPA is November 2016. I have 30 years NI contributions and have been assessed as having a starting amount of £133.41 under NSP rules. I have made several phone calls to the Govt Pensions office to try to get a definitive answer to my question as to the latest date that I can buy voluntary NI contributions to bring me up to 35 years in order to qualify for a full NSP. I have been told that I should wait until after April 6th 2016, and I have also been told that I need to buy them before the commencement of the year in which I qualify for my pension ie 2016/17 aka 5th April 2016. The question is simple, the answers are many. I would hate to get into the new tax year and find that I am not eligible to buy more NI contributions. For information, I have at least eight years between 2006 and 2016 that I can buy back NI contributions. I also have never contracted out. I will probably err on the side of caution and buy back five previous years before the new tax year begins. I think that this is the right thing to do as I have definitely been assessed as being better off under the new rules and the old rules.

xylophone

http://www.moneysavingexpert.com/savings/state-pensions

"I'm affected by the rule change, and only have 30 years of NI contributions. What do I get?

If you've only got 30 years' contributions and you're retiring on or after 6 April 2016, then you're not going to get the full amount of flat rate state pension. But you can buy the extra years you need and get a discount if you're affected.

You have up until 5 April 2023 to make payments. If you make contributions after 5 April 2019 you may pay higher rates. Again, this is complicated and we'll have more on this when we fully update the guide."



https://www.gov.uk/voluntary-national-insurance-contributions/deadlines

"You’re a man born after 5 April 1951 or a woman born after 5 April 1953

You have until 5 April 2023 to pay voluntary contributions to make up for gaps between April 2006 and April 2016.

You can pay these contributions at different rates if you pay by 5 April 2019."

SnowMan

teralin wrote: »

My SPA is November 2016. I have 30 years NI contributions and have been assessed as having a starting amount of £133.41 under NSP rules...................

I think that this is the right thing to do as I have definitely been assessed as being better off under the new rules and the old rules

It looks like your starting amount at 6th April 2016 has been calculated as the higher of

OLD RULES
= 30/30 x 119.30 (basic state pension) + additional state pension
= 119.30 + additional state pension

NEW RULES
= 30/35 x 155.65 = 133.41pw
(because you say you have never been contracted-out there is no deduction for contracting-out)


So that ties in with your amount of £133.41pw. It looks like any additional pension under the old rules wasn't enough to push that calculation above £133.41pw.


If you purchase 5 missing (pre April 2016) years you can increase the (new rules) starting amount to the full single tier pension

35/35 x 155.65 = 155.65pw

So there is value in buying these 5 years, as you've worked out yourself.

There is a deadline of 5th April 2019 to buy these years at the discounted rate

https://www.gov.uk/voluntary-national-insurance-contributions/rates

You’re a man born after 5 April 1951 or a woman born after 5 April 1953

You have until 5 April 2023 to pay voluntary contributions to make up for gaps between April 2006 and April 2016.

You can pay these contributions at different rates if you pay by 5 April 2019.

As you reach SPA in November 2016 then it make sense to pay those voluntary contributions before November. But as that link indicates there is no deadline to make payment by 5th April.


As an aside the starting amount you've been given probably excludes the 2015/2016 tax year. I'm guessing that is one of your missing 8 years you mention, but if it isn't then there may only be 4 years to buy.

SnowMan

They seem to have added a news screen showing the COPE (Contracted Out Pension Equivalent) amount on the online system. I think until recently the 'COPE' amount was only shown on paper statements.

That should mean it is possible to actually work out the calculation on the new state scheme basis even if the existing scheme calculation is higher, remembering that the starting amount at April 2016 is the higher of the new and existing state scheme calculations.

They've done it in away that is going to confuse people, I predict, as they add a COPE figure to the state pension figure to give a new total. They don't seem to understand the basic concept that a state pension figure should really just show state pension.

gadgetmind

I wish they'd show qualifying years, which they didn't when my wife last looked and we had to add up from the detailed record screens. And neither do they show the COD, though you can calculate this.

When will they start showing foundation amount with working?

SnowMan

gadgetmind wrote: »

I wish they'd show qualifying years, which they didn't when my wife last looked and we had to add up from the detailed record screens.

They have always shown the Qualifying Years figures in my case.

When you log in, click on the 'how to increase it' tab, then click on 'view your national insurance record' and on the RHS, titled Summary, is the number of Years of Full Contributions (i.e. Qualifying Years to 6th April 2015), and future potential Qualifying Years after 6th April 2015 and 'Years when you didn't contribute enough'.

When will they start showing foundation amount with working?

Agreed they should show the basic calculations. Until they have processed the 2015/2016 contributions, they can't show the final Starting Amount (foundation amount) figure though.

gadgetmind

Maybe my wife just didn't get it on the screenshots as she struggled to find a way to download the data in some sensible format.

Chickereeeee

Chickereeeee wrote: »

The site now says it cannot calculate the quote in my case.

The site still cannot calculate mine. It says 'sorry, please contact the future pensions centre'.

I have not seen anybody else report this problem. Am I alone?

C

gadgetmind

Hmmm, I just logged on. Still showing 33 years for me but £155.95 based on NI to date and £158.82 is I continue to contribute. I guess I'm on target to go over single tier based on contributions to April 2016 and then that's it.