New State Pension Guide

1957sisgb

Write forecast received today. Is exactly the same as the online one Ive outlined above.

GunJack

maybe, coincidentally, your best old/new rules calculation just happened to be within pence of the new full single-teir amount, cope already taken into account, and that's just how it's dropped for you, so what with that and your private pensions from when you were contracted-out, should be ok

1957sisgb

Lovely, thank you. I won't ask them to double check........

molerat

But if you were contracted out there should be a reference to the fact and a COPE amount. I would contact them and query it, better to find out the situation now rather than the day before you reach retirement age with little chance to do anything about it.

1957sisgb

Yes, I guess you're right. Will call them (again) next week.

xylophone

Do you have any "former protected rights" pensions?

Any deferred DB pensions?

Were you contributing to a contracted out scheme immediately before 6.4.2016?

ezglide1450

I have recently checked my state pension forecast online. I have 35 qualifying years but because I was opted out under my public service pension I am only due around £125 a week in 2022 when I will be 66. The most I can attain is around £152 but only if I pay contributions from 2016 until then but as I don't work now this is unlikely. I enquired about paying back earlier years but was told that payments before 2016 would only count towards the 'old pension' and wouldn't benefit me at all ! Only payments for years since 2016 would improve the 'new pension' but HMRC didn't appreciate this when I rang them and they gave me contrary advice to the pension service ! I already pay tax on my work pension so I'm not sure if it's worth buying contributions from 2016-2022 or not. Why does it have to be so complicated ?

p00hsticks

ezglide1450 wrote: »

I have recently checked my state pension forecast online. I have 35 qualifying years but because I was opted out under my public service pension I am only due around £125 a week in 2022 when I will be 66. The most I can attain is around £152 but only if I pay contributions from 2016 until then but as I don't work now this is unlikely. I enquired about paying back earlier years but was told that payments before 2016 would only count towards the 'old pension' and wouldn't benefit me at all ! Only payments for years since 2016 would improve the 'new pension' but HMRC didn't appreciate this when I rang them and they gave me contrary advice to the pension service ! I already pay tax on my work pension so I'm not sure if it's worth buying contributions from 2016-2022 or not. Why does it have to be so complicated ?

It's ony complicated in this transitional period to ensure things are as fair as possible for those already working - the whole point of the new state pension is to make it simpler for those starting out now.

So your current forecast figure is around £125 ?
As you have 35 years I think the advice that buying previous (pre-216) years wouldn't achieve anything is correct.

However each year from 2016-2017 onwards will add around £4.45 a week to your pension. As voluntary Class 3 contributions currently cost around £733 a year then this means you'd get a positive return as long as you live more than three years after your retirement date - so very good value for most.

A step by step guide is here
https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

xylophone

https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

You have time to decide whether or not you wish to make voluntary contributions - you might prefer to wait until you are much closer to your state pension age and pay for the post 2016 years at that time.

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

GibbsRule_No3

I wonder if the "contracted out" will be the next big pension thing? With people arriving at state retirement in the next few years, who had retired early so stopped paying anything, wondering why they are not getting the £155 SP that most papers mention. If I did not read these boards I would not have known that the "work drag" for the next 3 years is actually gaining me money towards my SP due to contracted out years.