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

jgh

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.

Well, with all the goverment publicity saying "EVERYBODY" will get the £155 pension, then by definition it /can't/ be based on your NI contributions as different people have made different amounts of NI contributions. If it /is/ based on your NI contributions, then by definition, /not/ everybody will get the £155.

In the absence of an actual clear statement I just have to use my default position of assuming that the government is lying, and fall back on forecasting that I'll get 1/35 of £155 for every year of NI payments I've made. That gives me £62 with a possibility of getting it up to £106 by the time I qualify.

jgh

Ok, all this has given me enough information to track down definitive figures, this page: http://www.moneysavingexpert.com/savings/state-pensions being particularly useful. I forgot that I will have signing-on NI contributions as well.

From this my calculations give me:

[SIZE=2]  Full state pension, value in 2016           £155.00pw
  Years needed for full pension                    35
  Number of whole years of employment NI           10
  Number of odd months of employment NI    36mths = 3 yrs
  Number of whole years of unemployment NI          4
  Number of odd months of unemployment NI  67mths = 5.6yrs
  Years of NI payments                             22.6
  Pension accrued                22.6 / 35 =       65%
  Pension payable                65% * £155 = £100.01pw[/SIZE]

If I have no other income, I would get pension credits to top me up to £155.
If I have other income, and added to the state pension I am still under £155 I would get pension credits to top me up to £155.
If I have other income that takes me over the £155 I just get the £100 shown above.

If I pay 4x£733=£2932 that would cover me for the years I was working overseas and not paying any NI, and give me 26.6 years, 76% accrued, £117.80pw.
In the next 19 years I need to make 12.4 years of payments to get the full £155.

Thanks for the posts.

p00hsticks

jgh wrote: »

Well, with all the goverment publicity saying "EVERYBODY" will get the £155 pension, .

I've not seen any such publicity - perhaps some misleading newspaper headlines and articles, but nothing directly from the government saying any such thing.

bigadaj

p00hsticks wrote: »

I've not seen any such publicity - perhaps some misleading newspaper headlines and articles, but nothing directly from the government saying any such thing.

Read yesterday's daily mail, the whole finance but can lead to a good chuckle.

molerat

jgh wrote: »

Ok, all this has given me enough information to track down definitive figures, this page: http://www.moneysavingexpert.com/savings/state-pensions being particularly useful. I forgot that I will have signing-on NI contributions as well.

From this my calculations give me:

[SIZE=2]  Full state pension, value in 2016           £155.00pw
  Years needed for full pension                    35
  Number of whole years of employment NI           10
  Number of odd months of employment NI    36mths = 3 yrs
  Number of whole years of unemployment NI          4
  Number of odd months of unemployment NI  67mths = 5.6yrs
  Years of NI payments                             22.6
  Pension accrued                22.6 / 35 =       65%
  Pension payable                65% * £155 = £100.01pw[/SIZE]

If I have no other income, I would get pension credits to top me up to £155.
If I have other income, and added to the state pension I am still under £155 I would get pension credits to top me up to £155.
If I have other income that takes me over the £155 I just get the £100 shown above.

If I pay 4x£733=£2932 that would cover me for the years I was working overseas and not paying any NI, and give me 26.6 years, 76% accrued, £117.80pw.
In the next 19 years I need to make 12.4 years of payments to get the full £155.

Thanks for the posts.

One flaw in your calculations seems to be with the "odd months". Odd months do not count and must be made up to full years, you can not add 6 months from 2 separate years to make a qualifying year. You can purchase the missing weeks from 2006 to make up whole years though. You need to get a pension forecast and an NI statement to see where you stand.

bigfreddiel

molerat wrote: »

One flaw in your calculations seems to be with the "odd months". Odd months do not count and must be made up to full years, you can not add 6 months from 2 separate years to make a qualifying year. You can purchase the missing weeks from 2006 to make up whole years though. You need to get a pension forecast and an NI statement to see where you stand.

I thought that was the case. So the slight implication here is that everyone will have some 'wasted' NI partial years of contributions, at the start of working and art the end. But as everyone expects to work at least 40+ years it's not a problem.

There are so many unexpected implications in this game!

Cheers fj

bigfreddiel

bigadaj wrote: »

Read yesterday's daily mail, the whole finance but can lead to a good chuckle.

Daily Mail Wednesday editions are always a good chuckle. Hoping this week, or next weeks should be classics

cheesetoast

But isn't the OP saying that he's expecting to have 35 years (i.e. full) state pension, but MINUS 21 years of contracted-out deduction?

Bootsox

bigfreddiel wrote: »

Daily Mail Wednesday editions are always a good chuckle. Hoping this week, or next weeks should be classics

If I don't find them remotely funny I'll be sure to let you know.

Pennylane

https://www.savvywoman.co.uk/6522/the-government-should-write-to-women-who-will-lose-out-with-the-new-state-pension-from-april/