State Pension forecast keeps changing (even though based on same NI data)?

Shedman

zagfles wrote: »

The amount can go down, for instance if you have a deferred contracted out pension with a GMP (pre 97) which uses fixed rate relavuation in deferment. If eg GMP goes up 6% a year then your SERPS will reduce by the same amount before being earnings indexed at far less than 6%.

So state pension can go down if they've taken this into account but not yet added your 2015/16 NI record.

Anyone know when the "Foundation amount" for the new state pension is going to be available?

That could make some sense as I do have such a deferred FSP with an element of pre 97 GMP and was contracted out at various points (and I believe the GMP is being indexed at 6.25%). I'll plug some numbers in and do a quick crosscheck.

So potentially on that basis my forecast state pension could keep moving around until I start taking the FSP in around 6 years?

zagfles

Shedman wrote: »

That could make some sense as I do have such a deferred FSP with an element of pre 97 GMP and was contracted out at various points (and I believe the GMP is being indexed at 6.25%). I'll plug some numbers in and do a quick crosscheck.

So potentially on that basis my forecast state pension could keep moving around until I start taking the FSP in around 6 years?

No AIUI that should stop now with the new state pension, the "foundation amount", ie the amount on switchover a few days ago, should be set in stone and can only be added to with full additional years. Ie you get the foundation amount plus 1/35 of the full new state pension for each additional qualiftying year until you reach 100% of the full pension.

So you get the 6.25%pa revaluation on the GMP from the occ scheme but that isn't offset by the reduction in SERPS. But the down side is that you won't get inflation increases on any pre-88 GMP once it's in payment, and on 88-97 GMP you'll get up to 3% from the scheme but not any additional increase from the state.

greenglide

Anyone know when the "Foundation amount" for the new state pension is going to be available?

The Starting Amounts for most people should be available from around May / June onwards as the contributions data becomes available but, of course, that doesn't mean it will be available to us.

In practice it may be dependant on whether somebody has had a good idea and maybe they are going to issue them to everbody. If not they would still have to change the current online forecast system so we "should" know when it happens.

I certainly wouldn't hold my breath!