New State Pension Guide

anothermam2

Thank you once again. It is looking increasingly likely that it is not worth topping up. When I rang future pensions they said they would send me a quote. They were quite vague on detail so I'm not sure whether all I will get is figures I already know. It will take up to 10 days so this forum will be on page 2999 by then
Meanwhile I will try and absorb your information, you really know your stuff. I did not expect it to get so complicated or maybe I really am just thick!

GunJack

anothermam2 wrote: »

Thank you once again. It is looking increasingly likely that it is not worth topping up. When I rang future pensions they said they would send me a quote. They were quite vague on detail so I'm not sure whether all I will get is figures I already know. It will take up to 10 days so this forum will be on page 2999 by then
Meanwhile I will try and absorb your information, you really know your stuff. I did not expect it to get so complicated or maybe I really am just thick!

Just don't forget to dig out the details of your contracted-out company pension, which assuming has been in deferral for some years, should be worth more than you were thinking it would be, and quite possibly more than the extra £35 a week state pension

johnpr98

I've paid 43 years NI and I am currently retired from LG with 2 years until my State Pension at 65
I understand that if I pay two+ years of NI for 2016-17 and 2017-18 and a bit of 2018-2019 I can gain an extra £10 per week approx. to boost state pension from £126 to £136 approx. as I'm no longer paying reduced NI because of my occupational pension.

That is if I'm understanding this correctly, that's what my Pension forecast seems to imply
If so, I should break even after 4 years, after including income tax deductions on the extra amount.

I'm miffed about paying extra NI on top of 43 years but this seems a way to claw some of my pension back

greenglide

If you reach SPa in 2018/2019 (between 6/4/2018 and 5/4/2019) then that year can never be a qualifying year and you can't make voluntary contributions for it.

So only two post 5/4/2016 years seem possible?

On what grounds are you "miffed"? This is money you wouldn't have got under the old system and any amount that you get over the old Basic Pension amount of £119 will be uprated by the triple lock, rather than just CPI under the old system.

bigadaj

johnpr98 wrote: »

I've paid 43 years NI and I am currently retired from LG with 2 years until my State Pension at 65
I understand that if I pay two+ years of NI for 2016-17 and 2017-18 and a bit of 2018-2019 I can gain an extra £10 per week approx. to boost state pension from £126 to £136 approx. as I'm no longer paying reduced NI because of my occupational pension.

That is if I'm understanding this correctly, that's what my Pension forecast seems to imply
If so, I should break even after 4 years, after including income tax deductions on the extra amount.

I'm miffed about paying extra NI on top of 43 years but this seems a way to claw some of my pension back

It's not clawing back pension, it's an attempt at double dipping.

The fact you were contracted out means that you save NI and money went to buy you additional pension through your scheme.

You don't have to pay additional NI, just get yourself a part time job and that will buy you additional pension as well.

EdGasket

I think johnpr98 is entitled to feel miffed. There was supposed to be flat rate for everyone pension that the gov't is trumpeting but it is anything but 'flat rate'. People who are not currently working but not yet reached retirement age have their flat rate pension reduced; of course they feel miffed and rightly so.

p00hsticks

EdGasket wrote: »

I think johnpr98 is entitled to feel miffed. There was supposed to be flat rate for everyone pension that the gov't is trumpeting but it is anything but 'flat rate'. People who are not currently working but not yet reached retirement age have their flat rate pension reduced; of course they feel miffed and rightly so.

The term 'flat rate' has been used mistakenly - the correct term is 'single tier' to reflect the fact that the new State Pension (nSP) removed the different contracted in/contracted out tiers of NI contributions.

No-one approaching retirement age, such as johnpr98, will get any less than they will have been expecting under the old rules, and in some cases this could be considerably more than the nSP maximum. If it isn't they'll also have an opportunity to work/buy additional NI years to increase their weekly pension to more than they would have previously got.

So I don't see that they have any reason to feel miffed.

johnpr98

greenglide wrote: »

If you reach SPa in 2018/2019 (between 6/4/2018 and 5/4/2019) then that year can never be a qualifying year and you can't make voluntary contributions for it.

So only two post 5/4/2016 years seem possible?

On what grounds are you "miffed"? This is money you wouldn't have got under the old system and any amount that you get over the old Basic Pension amount of £119 will be uprated by the triple lock, rather than just CPI under the old system.

Cos I paid over 35 years NI and I'm not receiving the full pension amount, I wasn't in Local Government all the time I was working either, I know I have no comeback and it's all swings and roundabouts :eek:

Thanks for confirming that I can only buy two full NI qualifying years, I'm still confused how my official pension projection can add over £10 in two years, however that will become clearer once I receive my pension I'm sure

Sandra_Priestley

We have just received notification of my partner's pension due on 7.7.16. According to the website he should be entitled to £155 ish per week. However, he's been told he's only entitled to £130 ish per week. He rang the government helpline who said that even though he has 40 years contributions, because of his small private pension he was being penalised by £25.00 per week. There was no mention of this on any government websites that we viewed. If this is correct it seems very unfair, at no time was he informed that this was the case. If this is correct it should be made clear on the websites. No wonder everyone is being encouraged to take out a private pension as if this is the case as the government will be able to save lots of money in reduced pension credits and other benefits. He is extremely annoyed.

bigadaj

Sandra_Priestley wrote: »

We have just received notification of my partner's pension due on 7.7.16. According to the website he should be entitled to £155 ish per week. However, he's been told he's only entitled to £130 ish per week. He rang the government helpline who said that even though he has 40 years contributions, because of his small private pension he was being penalised by £25.00 per week. There was no mention of this on any government websites that we viewed. If this is correct it seems very unfair, at no time was he informed that this was the case. If this is correct it should be made clear on the websites. No wonder everyone is being encouraged to take out a private pension as if this is the case as the government will be able to save lots of money in reduced pension credits and other benefits. He is extremely annoyed.

Sounds like he was contracted out, so would have paid less national insurance and have gained a private pension in its stead.

It's all very well to complain but have some clue why you are doing this, reading the daily mail is unfortunately not enough to gain much information about most subjects.

Virtually no one will be getting £155 per week for many years, some will get more and some will get less primarily dependent on how many years they above paid in and whether they have been contracted on or out.

No one is also getting any less due to the new system, the calculation is done under the new and the old system and the individual receives the larger of the two.

Which website states that he's due £155, is it the mail online?