Stae Pension Forecast says I'll get full amount even though I was contracted out?

Bootsox

bigfreddiel wrote: »

So if it's not based on NI contributions what could it based on?

Of course it's based on your NI contributions, right now 30 years, in a few days time 35 years.

Just google for state pension and go to the .gov pages. fj

For state pension "earned years" purposes, NIs are only required to be paid up to a certain trigger point (e.g. NIs on a minimum £5,824 a year income).

You could have been paying vastly more NIs than this but you will get nothing off the state, including pensions, to show for it.

Bootsox

camelopardis wrote: »

I checked the new state pension forecast. I'm 50 and according to the site I currently have 34 years NI contributions (up until last April). I'll have done 35 years this April and my forecast shows I'll be eligible to the full £155 a week. I'm unlikely to make any further contributions as I'll be taking early retirement later this year.

However, I was contracted out between 1983-2004, and then contracted in from 2004- to date. Yet the forecast doesnt show any reduction? Does anyone why that might be? Can I trust that its correct?

Same issue/similar type of forecast at my end.

Would be handy if the website had an additional "what if" functionality, e.g. for a 50 year old, "what would my state pension be at 67 if I retired at 55 and paid no more NIs?"

Pennylane

http://www.telegraph.co.uk/pensions-retirement/financial-planning/state-pension-how-much-will-you-get/

This might help explain

GunJack

That article's mostly pants, the opening paragraph is misleading to say the least:-
"The state pension will be given an enormous boost next week, when those who retire after April 6 can look forward to a weekly payment of £155.65 (£8,094 a year)."

bigfreddiel

Pennylane wrote: »

I read that only 1 in 3 people will get the full amount of £155.65 so not as good as it sounds.

According to the Sunday Times today it's only 13% way of the 33% you read elsewhere.

Cheers fj

bigfreddiel

Bootsox wrote: »

For state pension "earned years" purposes, NIs are only required to be paid up to a certain trigger point (e.g. NIs on a minimum £5,824 a year income).

You could have been paying vastly more NIs than this but you will get nothing off the state, including pensions, to show for it.

And your point is? fj

bigfreddiel

camelopardis wrote: »

I checked the new state pension forecast. I'm 50 and according to the site I currently have 34 years NI contributions (up until last April). I'll have done 35 years this April and my forecast shows I'll be eligible to the full £155 a week. I'm unlikely to make any further contributions as I'll be taking early retirement later this year.

However, I was contracted out between 1983-2004, and then contracted in from 2004- to date. Yet the forecast doesnt show any reduction? Does anyone why that might be? Can I trust that its correct?

This whole thread seems to have gone off at a tangent.

I can understand your confusion. If you had asked for a forecast a few years ago, four or so the results did show a breakdown. It showed that I was only a few pounds short of the nSP, and how my additional pension was made up. I have been contracted out for 15 years, but the AP I created in my early days while contracted in makes up the difference. And in the last three years I've been contracted in earning another few pounds in AP making up my small shortfall so now adding my AP to the basic SP it exceeds the nSP.

But you don't get a breakdown anymore.

Hope that helps, fj

p00hsticks

Bootsox wrote: »

Same issue/similar type of forecast at my end.

Would be handy if the website had an additional "what if" functionality, e.g. for a 50 year old, "what would my state pension be at 67 if I retired at 55 and paid no more NIs?"

That's really easy to work out under the new rules once you have your initial 'starting amount' as at 6/4/16. Just add 1/35th of the maximum new state Pension amount (£155.65) for each qualifying NI year going forward unless/until you reach the maximum, which can't be exceeded...

JezR

bigfreddiel wrote: »

According to the Sunday Times today it's only 13% way of the 33% you read elsewhere.

I suspect that doesn't include the people who will get more than the max amount of nSP.

bigfreddiel

JezR wrote: »

I suspect that doesn't include the people who will get more than the max amount of nSP.

Good point, maybe it doesn't! fj