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

bry54

I've received a letter from HRMC informing me of the previous years I can pay VC's ,which I didn't ask for and nothing about VC's from 6/4/16 which I had asked for!, but on 5 of the years since early retirement the letter says "under investigation" , should I be concerned?

eastcorkram

Finally got round to checking this.

It gives me a forecast of £157.40. Based on 24 years so far, and if I keep contributions going until 2024. Confusingly, it says the most anyone can get is £155.

Now.... I've actually been working for 40 years already. Sixteen of those were in Ireland, paying full PRSI. Obviously, on the UK forecast site, those years are considered missing, as nothing was contributed here.

So, when I get to age 66, do I get anything from the sixteen years in Ireland? If so, is it on top of the £157, or instead of part of it?

bigfreddiel

You may get something from your days in Ireland, my wife got credit for her time working in Australia in the 1970's

I guess you need to contact the Irish DWP whatever they may be called.

Cheers fj

molerat

http://europa.eu/youreurope/citizens/work/retire-abroad/state-pensions-abroad/index_en.htm

SnowMan

eastcorkram wrote: »

Finally got round to checking this.

It gives me a forecast of £157.40. Based on 24 years so far, and if I keep contributions going until 2024. Confusingly, it says the most anyone can get is £155.

Now.... I've actually been working for 40 years already. Sixteen of those were in Ireland, paying full PRSI. Obviously, on the UK forecast site, those years are considered missing, as nothing was contributed here.

So, when I get to age 66, do I get anything from the sixteen years in Ireland? If so, is it on top of the £157, or instead of part of it?

molerat has given a very good link in the previous post.

The UK contact point for queries such as yours is the International Pensions Centre

https://www.gov.uk/international-pension-centre

You need to find out if the online figures are based on your UK years only (which you suspect it is). If it is based on UK only then the £157.40pw figure could have been calculated as

24/30 x 119.30 (basic) + 61.96 (additional state pension)

Although if you have 25 qualifying years, including the 2015/2016 year that hasn't been incorporated, and the £157.40pw is the projected figure, then it might have been calculated as

25/30 x 119.30 (basic) + 57.98 (additional state pension)

As your starting amount is above £155.65pw I'm asuming it must be based on the old (current) state scheme calculation.

However as molerat's link shows they will do two calculations at SPA, one calculation based on the UK and Irish state schemes and one based on pro-rata entitlements.

So when you reach SPA the UK authorities will need to do a calculation based on your 40+ years and pro rata it down for the proportion of years in the UK and compare it with your entitlement based on UK years only.

jodvin

Can someone assist.
My pension forecast (24 years), my Husbands (33 years) and my sisters (17 years) are all saying we can not improve our forecasts any further. does this mean we are getting the figures on the front page? (amount based on your latests NI record - £115, £119 and £75) all of us were contracted out of serps as we work in the public sector or can we make up the difference up to the £155.65? any help would be appreciated. thanks all

SnowMan

jodvin wrote: »

Can someone assist.
My pension forecast (24 years), my Husbands (33 years) and my sisters (17 years) are all saying we can not improve our forecasts any further. does this mean we are getting the figures on the front page? (amount based on your latests NI record - £115, £119 and £75) all of us were contracted out of serps as we work in the public sector or can we make up the difference up to the £155.65? any help would be appreciated. thanks all

Your starting amounts are all likely to be based on the old rules calculation because you all have long periods of contracting-out.

Assuming you and your sister get a qualifying year for 2015/2016 through having worked and earned more than £5,824 in 2015/2016 in a single job for example (noting that 2015/2016 is not yet incorporated into records) then that will increase your starting amounts at April 2016 by about £3.98pw (=1/30 x 119.30). Your husband can't earn any further basic state pension for 2015/2016 as he already has the maximum 30 years.

So your starting amounts under the new system at April 2016 (what you've earned so far) might be approximately

You: £119pw (=115 + 3.98)
Husband: £119pw (= 119 + 0)
Sister: £79pw (= 75 + 3.98)

You can each add 1/35th of the new state pension, about £4.45pw, for each post April 2016 Qualifying Year, until you get up to the full single tier pension of £155.65pw.

So you will need respectively about 9,9 and 18 post April 2016 Qualifying Years to get you up to £155.65pw of state pension, assuming you have enough potential post April 2016 qualifying years to get you up to £155.65pw. Once you get up to £155.65pw you can't accrue any further state pension for additional qualifying years.

All figures in 2016/2017 terms (and assumes no unusual scenarios such as reduced rate married women's contributions).

GunJack

^^^ can't you only do this up to sp age??

xylophone

https://www.gov.uk/new-state-pension/how-its-calculated

"If your starting amount is less than the full new State Pension

You can get more State Pension by adding more qualifying years to your National Insurance record after 5 April 2016. You can do this until you reach the full new State Pension amount or reach State Pension age - whichever is first.

Each qualifying year on your National Insurance record after 5 April 2016 will add about £4.45 a week to your new State Pension. The exact amount you get is calculated by dividing £155.65 by 35."

bigfreddiel

GunJack wrote: »

^^^ can't you only do this up to sp age??

I believe so fj