New State Pension Guide

balbs

xylophone said:

See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf
At 6/4/16, two calculations were done
NI years [up to 30] /£119.30 [full BSP 2016-17] + (Additional State Pension - Deduction for Contracting Out)

(NI years [up to 35]/£155.65 [full NSP 2016-17]) - Contracted Out Pension Equivalent.
Your "starting amount" was the higher of the two.
If your SA was less than £155.65, provided that you had a full NI year 2016-17, you would have been able to improve the forecast by approx £4.44.

Xylophone has to post this many many times in response to questions, I nominate it for a sticky at the very least or put somewhere prominent on Martins site.

JaveaSteve

Dazed_and _Confused, Yes that's what I'm wondering as my pension at the moment is only £135 pw and its the old scheme.  I have not paid NI since 2008 as took early retirement but still had the 35 years required.  Did not really notice the discrepancies until the yearly increments and friends and colleagues had bigger annual increases  and whilst some are contracted out they are receiving £20 extra a week at the moment and that will only increase as time goes on as I see it.   

Dazed_and_C0nfused

There is no 35 year requirement for those under transitional rules.  Which you are.

The 35 years really only applies to those starring their State Pension journey from April 2016.

Do you have the opportunity to make voluntary contributions?  These are generally seen as a fantastic investment.  A one off £750 or so will get you additional State Pension of £250/year (pre tax) for life.  So even if you end up paying 20% tax on it after 4 years you are in profit.

Note you cannot exceed £168.60 so watch out for a final year which might only buy you an extra few pence i.e. if buying 5 years takes you to £167.90 then an extra year only adds £0.70/week.

xylophone

What was your COPE?

molerat

You should still be able to purchase 2016-17 which will give you an extra £4.82 a week and I believe it will be backdated.  As you have 35 or more pre 2016 years you cannot purchase any more.  Best contact DWP and ask the question. https://www.gov.uk/contact-pension-service

Suffolk_lass

molerat said:

You should still be able to purchase 2016-17 which will give you an extra £4.82 a week and I believe it will be backdated.  As you have 35 or more pre 2016 years you cannot purchase any more.  Best contact DWP and ask the question. https://www.gov.uk/contact-pension-service

If he has not worked since 2008 (only explained after you posted molerat) he should have been able to make voluntary NI Contributions, normally back up to 6 years (although not for the tax year in which he reached SPA (65) or the years after that) - the Gov.uk guidance says 

You’re a man born after 5 April 1951 or a woman born after 5 April 1953

You have until 5 April 2023 to pay voluntary contributions to make up for gaps between April 2006 and April 2016.

molerat

Suffolk_lass said:

molerat said:

You should still be able to purchase 2016-17 which will give you an extra £4.82 a week and I believe it will be backdated.  As you have 35 or more pre 2016 years you cannot purchase any more.  Best contact DWP and ask the question. https://www.gov.uk/contact-pension-service

If he has not worked since 2008 (only explained after you posted molerat) he should have been able to make voluntary NI Contributions, normally back up to 6 years (although not for the tax year in which he reached SPA (65) or the years after that) - the Gov.uk guidance says 

You’re a man born after 5 April 1951 or a woman born after 5 April 1953

You have until 5 April 2023 to pay voluntary contributions to make up for gaps between April 2006 and April 2016.

"only explained after you posted" -- Confused by that comment !

JavaSteve posted 15 February at 7:13PM
molerat posted 15 February at 9:29PM

He states he already had 35 or more years so any pre 2016 years purchased will not count.

Suffolk_lass

molerat, after you posted the quoted text in my reply JaveaSteve said he gave up work in 2008 - so he is eligible to top up his pension by paying for the tax years since he stopped work. I have also stopped work with 44 years of full NI Contributions but I will still be making voluntary contributions for this year and the next three tax years before that in which I reach SPA to maximise my entitlement to the new state pension. Like JaveaSteve I was opted out of SERPS for most of those 44 years, so only earned entitlement to the basic state pension during that time.

jem16

Suffolk_lass said:

molerat, after you posted the quoted text in my reply JaveaSteve said he gave up work in 2008 - so he is eligible to top up his pension by paying for the tax years since he stopped work. I have also stopped work with 44 years of full NI Contributions but I will still be making voluntary contributions for this year and the next three tax years before that in which I reach SPA to maximise my entitlement to the new state pension. Like JaveaSteve I was opted out of SERPS for most of those 44 years, so only earned entitlement to the basic state pension during that time.

As molerat has said, only years from April 2016 onwards would make any difference. Paying for years from 2008 to 2016 would not improve his pension and would be a waste of money. 

molerat

Suffolk_lass said:

molerat, after you posted the quoted text in my reply JaveaSteve said he gave up work in 2008 -

And I have quoted the times of those 2 posts, 9.29pm is most certainly after 7.13pm on my clock.