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

roxy28

xylophone wrote: »

Your father is drawing his occupational pension - he already has 35 years + in the currents scheme so no point buying old years.

However, "new years"..... see http://citywire.co.uk/new-model-adviser/news/steve-webb-how-to-boost-new-state-pension-payments/a827032

Class 3 NI for 2016-17 remains £14.10 a week.

https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2016-17/tax-and-tax-credit-rates-and-thresholds-for-2016-17

Thanks for this

roxy28

GunJack wrote: »

buying earlier years probably wont help, but 3-4 years post-apr16 would..

Ok thanks as well.

waterstar

Thank you to SnowMan's helpful reply (post #282) to my previous post.

I have now signed up to Gov.uk Verify. I signed up via Barclays, which was relatively straightforward.

My pension details are showing the "two tabs" level of detail

Forecast
How to increase it

Without the tab "What Affects it" which some other posters seem to be getting.

I am slightly mystified, as the "Amount based on your latest National Insurance record (5 April 2015)" is showing as £119.30 (I have no issue there, see detail of contributions below) whereas the "Amount you may get to if you continue to contribute" is shown as £147.75.

As i have a SP date of October 2022 (age 66), i had believed that I could contribute six years NIC post 6 April 2016 to add 6 * £4.45 giving a nSP of £119.30 + £26.70 = £146.00. Hence slightly mystified as to it showing as £147.75.

I have thirty years of NIC contributions including 10.25 years (spread across 11 tax years) of Contracted Out in two separate employments (the applicable employment periods running back to back) and 11 years of voluntary Class 3 NIC contributions. The years of voluntary contributions do not include 2015-16.

Grateful to anyone who can provide guidance or to suggest any further enquiries I should be making.

Thanks in advance for any assistance.

SnowMan

waterstar wrote: »

Thank you to SnowMan's helpful reply (post #282) to my previous post.

I have now signed up to Gov.uk Verify. I signed up via Barclays, which was relatively straightforward.

My pension details are showing the "two tabs" level of detail

Forecast
How to increase it

Without the tab "What Affects it" which some other posters seem to be getting.

I am slightly mystified, as the "Amount based on your latest National Insurance record (5 April 2015)" is showing as £119.30 (I have no issue there, see detail of contributions below) whereas the "Amount you may get to if you continue to contribute" is shown as £147.75.

As i have a SP date of October 2022 (age 66), i had believed that I could contribute six years NIC post 6 April 2016 to add 6 * £4.45 giving a nSP of £119.30 + £26.70 = £146.00. Hence slightly mystified as to it showing as £147.75.

I have thirty years of NIC contributions including 10.25 years (spread across 11 tax years) of Contracted Out in two separate employments (the applicable employment periods running back to back) and 11 years of voluntary Class 3 NIC contributions. The years of voluntary contributions do not include 2015-16.

Grateful to anyone who can provide guidance or to suggest any further enquiries I should be making.

Thanks in advance for any assistance.

The difference betwen your calculation of £146.00 and their estimate of £147.75 is that the DWP are making a blanket assumption that everyone will earn some additional state pension for 2015/2016.

It looks like your starting amount is based on the old rules and so you can't increase your basic state pension component, by gaining a qualifying year for 2015/2016, because you already have the 30 years required under the old rules, but you can earn some additional state pension for 2015/2016. Whether you do earn this extra will depend on your earnings for 2015/2016 and whether it is a contracted-in year.

Have a look at molerat's post 320 and my reply, it is exactly the same issue.

waterstar

SnowMan wrote: »

The difference betwen your calculation of £146.00 and their estimate of £147.75 is that the DWP are making a blanket assumption that everyone will earn some additional state pension for 2015/2016.

It looks like your starting amount is based on the old rules and so you can't increase your basic state pension component, by gaining a qualifying year for 2015/2016, because you already have the 30 years required under the old rules, but you can earn some additional state pension for 2015/2016. Whether you do earn this extra will depend on your earnings for 2015/2016 and whether it is a contracted-in year.

Have a look at molerat's post 320 and my reply, it is exactly the same issue.

Thank you SnowMan for the prompt answer.

Is this DWP "blanket assumption" not going to be erroneous in most/many cases?

SnowMan

waterstar wrote: »

Is this DWP "blanket assumption" not going to be erroneous in most/many cases?

Quite possibly.

I suppose they have to assume something. Although the more obvious assumption to me would be to assume no additional pension for the 2015/2016 year.

Once the 2015/2016 year has been incorporated into records it's an assumption that will no longer need to be made. Not having 2015/2016 incorporated into records is an obstacle to clear communication.

bigfreddiel

SnowMan wrote: »

The difference betwen your calculation of £146.00 and their estimate of £147.75 is that the DWP are making a blanket assumption that everyone will earn some additional state pension for 2015/2016.

So the minimum amount DWP thinks we qualify for in 2015/16 is £1.75!

But I guess it could be more.

Cheers fj

SnowMan

bigfreddiel wrote: »

So the minimum amount DWP thinks we qualify for in 2015/16 is £1.75!

But I guess it could be more.

Cheers fj

Under s2P there are essentially two bands of accrual for 2015/2016, a flat rate of about £93.60pa and an additional earnings related amount for those with earnings between £15,300 and £40,040.

The £1.75pw is roughly equivalent to the flat rate accrual only.

If someone has less than 30 qualifying years to 5th April 2015, then the DWP will also assume that on the old rules basis that 2015/2016 will increase the basic state pension element of the (old rules) starting amount calculation at April 2016.

But for those with 30 qualifying years already such as waterstar and molerat, then the only bit that adds into the (old rules) starting amount to allow for 2015/2016 is the additional pension for 2015/2016.

To get the projected future amount the DWP then add in post April 2016 years onto this.

bigfreddiel

SnowMan wrote: »

Under s2P there are essentially two bands of accrual for 2015/2016, a flat rate of about £93.60pa and an additional earnings related amount for those with earnings between £15,300 and £40,040.

The £1.75pw is roughly equivalent to the flat rate accrual only.

That makes sense, so a couple more questions, or observations.

I have 47 years worth of contributions, seems a lot but there you go, and July is when I reach 65. So they won't be adding £1.75 to my current amount.

I've been contracted in for the last three years and earn more than £15.3k, so I guess I qualify for some additional earnings related amount, so what is the percentage of my income I should expect to see?

I'm already over the new state pension amount, does that make any difference?

Cheers fj

greenglide

No, it doesn't. Any further AP that you accumulate for 2015 / 2016 will increase the Protected Payment that you will get as your old rules calculation is over the nSP maximum.