state pension amounts

AJ16

I've seen reference to various SP pa amounts here. It would be interesting to know what people are getting and what those soon to retire are likely to get.

BananaRepublic

I am 52 with 29 years of SP credits, plus this year which was not included on the statement. I have always in these years paid plenty of NI contributions so I get an additional SP and the basic. Were I at retirement age and hence able to retire today, I would get about £8,000 pa, which strikes me as rather good as it covers all of the basics of living i.e. heating, council tax, house insurance, basic food, car fuel etc. Sadly there is no guarantee that a future government will preserve the value in real terms.

I am sure the government web site will tell you the full entitlement, and how it is calculated. As you probably know the required credits for the full SP is changing from 30 years to 35 years, and will be a flat rate pension rather than basic and additional.

https://www.gov.uk/state-pension/what-youll-get

In the old scheme, the maximum additional state pension is about £160 pw, and the full basic is about £116 pw, so previously you could get about £14,000 pa from the state. The new scheme means a huge drop for people like me compared to my parents. Something tells me we will see a of people downsizing their property, and perhaps a lot more poor pensioners, or older people doing part time work. I suppose the good side of this is that the poorest will get a higher pension, and I do approve of that.

atush

AJ16 wrote: »

I've seen reference to various SP pa amounts here. It would be interesting to know what people are getting and what those soon to retire are likely to get.

Your age, how many years you worked would help.

Then how you worked,..If you were 'contracted out' of the second state pension means something all public sector workers were and some private).

What you need is a state pension statement (not forecast) to see how may years you have credit for (will need 35 for full basic then any second/S2P is added on) for your foundation amount.

once you have this foundation amount, it is the min you will get. Then, if you work (or have benefits paid afterwards from april 2016, you can add on just over 4 quid a week until you reach the new, fully paid state pension for each year of credit going forwards.

So get a statement, and a forecast too if over 59.

hugheskevi

DWP has something called tabtool which enables you to look at average amounts of State Pension (and other benefits).

This table using the tool shows average amounts by age and gender. Around £150 p/w for men, £120 p/w for women. This table shows distribution of State Pension, by gender.

The system changes from April though, but due to the way the starting amount is calculated there is unlikely to be a significant difference in the average amounts over the next few years.

JezR

Relatively few people have the maximum additional state pension or close to it on their own contributions alone, as people with the income levels needed for it would in many cases tended to have had contracted out pensions, particularly in the SERPS era. More may have it through inheritance of a partner's.

Nual

I have just received my statement and will get 139/ wk at 66 ( aged 60 now), with 39/40 years contributions. My contracted out deduction is 60/wk. I have been in a DB scheme for the last 24 years, SERPS prior to this.

I am planning to buy post 2016 voluntary NI contributions to make the SP up to the maximum, as I will take ER at the end of March 16.

This pension stuff is so complicated. I am intelligent and highly educated, but really struggle with understanding all the permutations and possibilities. This site ( or rather the posters on it) has been very very helpful.

mark1959

Yes I agree it's complicated [but then my phone's a lot smarter than me]. My pension statement done on line a fortnight ago said that I would receive £153.60 if I didn't work any longer, or £152.20 if I carried on working to 66! Hmmm.....
I'm 56 and have been contracted out for at least 15 years [I wish they'd said how long on the statement but never mind] with which I've built up a reasonable pot of circa £105,000, working since 16 [41 years credits NI as of april '15, must have 2 years credit for 1 year somewhere] so i'm quite pleased with my state pension as I don't intend to work much more. Retiring about april/may next year.

neilvw

An NI statement should show which years you were contracted out?
https://online.hmrc.gov.uk/shortforms/form/NIStatement

System

Interestingly I have just used the relatively new beta site for state pension forecasts. You have to verify your details first using driving licence and passport but results were interesting. If I retire early aged 58 will receive about £167 a week at age 66 but if I pay in another 8 years will receive £150 a week! Both figures allow for time contracted out and contracted in. As I am contemplating early retirement at just over 58 this is encouraging news for me to know roughly what SP to expect at 66. I am fortunate to be able to go at just over 58 owing to a very good DB scheme. The site also gives you your full NI record which is interesting. I received some credits when after age 16 for part-time employment, sixth form and University. At moment have a total of 38 full years soon to be 39 as well as 3 incomplete years (teen part-time working)
The link is below
http://www.tax.service.gov.uk/checkmystatepension

bigadaj

excelpaul wrote: »

Interestingly I have just used the relatively new beta site for state pension forecasts. You have to verify your details first using driving licence and passport but results were interesting. If I retire early aged 58 will receive about £167 a week at age 66 but if I pay in another 8 years will receive £150 a week! Both figures allow for time contracted out and contracted in. As I am contemplating early retirement at just over 58 this is encouraging news for me to know roughly what SP to expect at 66. I am fortunate to be able to go at just over 58 owing to a very good DB scheme. The site also gives you your full NI record which is interesting. I received some credits when after age 16 for part-time employment, sixth form and University. At moment have a total of 38 full years soon to be 39 as well as 3 incomplete years (teen part-time working)
The link is below
http://www.tax.service.gov.uk/checkmystatepension

I think you're misunderstanding. The two figures are separate and distinct, one representing entitlement under the old system and the other under the new. So you're pension wouldn't be reduced by working longer, it's just that the amount you accrued under the old system is greater than that under the new one, you get the higher of the two so all it means is that you wouldn't gain any additional benefit by working for those extra years.

System

Many thanks bigadaj. I was aware of that but didn't make it clear in my post. Apologies.