State Pension deferral - incorrect result ?

greenglide

Presumably you can specify a date to the DWP on which you wish to retire?

You always specify a "claiming from" date and under the present rules (it changes on 6/4/2016 when nSP starts) you actually get paid from the following payday (if paid in advance) or the day after the next payday (if paid in arrears which new claims have been for some years now).

It doesn't automatically line up with the 5 weeks to get another 1%. The 10.4% does not take this into account, they actually use the 1% for each complete 5 weeks calculation.

xylophone

The basic state pension in 2011-12 was £102.15 a week.

The OP is likely to have been due more that this - almost certainly some Graduated Pension and perhaps some SERP/S2P.

Can the figure of £124.70 a week be the amount before the extra state pension earned through deferral is added on?

See

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/372517/dwp024-102014.pdf

GunJack

which would make it approx £194 a week after 4.5 years deferral @ 10.4%...or around £160 pw @ 5.8%

jamesd

John_Pierpoint wrote: »

Given a mixture of savings, inheritance and continuing to work, I have deferred my State Pension due at 65 by 4.5 years, ... I phoned the claim line and asked what I would be getting.
After a bit of computer keyboard work, entering my NI number, back came a figure: ... £ 124.70 and the information that I had 49 years of contributions.

The number seems to inarguably be wrong. This is because after 4.5 years of deferral you would be entitled to 1.468 times the inflation-adjusted original pension entitlement. £124.70 / 1.468 = £84.94 yet you clearly have enough years to qualify for the full basic state pension, which is higher than this.

It seems more likely that you were told the current entitlement including some GRP, SERPS and S2P entitlement, after the deduction for presumably being in contracted out schemes for much of your working life and after all of the inflation-linked increases since you reached state pension age. That in turn would mean that your actual income entitlement would be around £183.05 at the moment after allowing for the increase due to deferral.

bouicca21

I reckon that's basic state pension plus second pension from SERPS or similar, and does not take into account the deferral.

John_Pierpoint

Wow 15 replies already.

Many thanks everyone so far. It is looking like a session of wrapping a cold wet towel round the head and trying to understand the ins and outs of the system - hopefully the person on the help line simply pressed the "claim now" button to get a figure.
I said I had already applied for the on-line pin/password so I would check it out and claim myself, when ready.

Yes I am 69.5 years old and intending to line up the state Pension with the tax year.
Before leaving college with A levels and finding myself with a full time job, I had worked in the holidays but I doubt these interludes aged 15+ had qualified me for benefits. I recall being threatened with loss of maternity allowance by someone with half moon glasses over my erratic 18 year-old job history

I do remember some time in the past working out that my graduated pension entitlement was less than a pint of beer a week!

Any more thoughts would be most useful this side of Monday afternoon when I will try the help line again.

greenglide

I said I had already applied for the on-line pin/password so I would check it out and claim myself, when ready.

You don't mean the state pension online claim form that the gov.uk web site links to using the government gateway do you?

That doesn't actually tell you what you are entitled to, it just fills in the form for us. If you don't visit the site for a month it deletes the claim and you have to re register. You can't claim more than four months in advance of the date you wish to claim from.

Not ideal!

sheramber

John_Pierpoint wrote: »

Wow 15 replies already.

Many thanks everyone so far. It is looking like a session of wrapping a cold wet towel round the head and trying to understand the ins and outs of the system - hopefully the person on the help line simply pressed the "claim now" button to get a figure.
I said I had already applied for the on-line pin/password so I would check it out and claim myself, when ready.

Yes I am 69.5 years old and intending to line up the state Pension with the tax year.
Before leaving college with A levels and finding myself with a full time job, I had worked in the holidays but I doubt these interludes aged 15+ had qualified me for benefits. I recall being threatened with loss of maternity allowance by someone with half moon glasses over my erratic 18 year-old job history

I do remember some time in the past working out that my graduated pension entitlement was less than a pint of beer a week!

Any more thoughts would be most useful this side of Monday afternoon when I will try the help line again.

\

you will have an automatic starting credit of 3 years from age 16.

brewerdave

When I decided to defer last June, I tried to find out what I would have received pre deferral -it proved impossible without actually starting a formal claim!!

uk1

brewerdave wrote: »

When I decided to defer last June, I tried to find out what I would have received pre deferral -it proved impossible without actually starting a formal claim!!

Same here for both my wife and myself. For all the pressure put on people to plan properly for their retirement it is outrageous they will not tell you exactly what pension to expect. either today or at a future date.

Jeff