State pension forecast of £165, but not aware of any protected payments.

splashproof

I have 36 qualifying years, and my predicted state pension will be £165 when I reach retirement age - where did the extra £9.35 a week come from ?


I'm not aware of any 'protected payments', and the helpline were unable to explain it either.

bigadaj

You were presumably contracted in for part or all of your working life.

How old are you and how many years were you contracted out, those facts should lead to the calculation that you've received.

Two calculations are completed, one based on the old rules and one under the new rules, and you receive the higher of the two. So presumably your calculation under the old system exceeded the new single tier pension which is why you will receive the sum stated.

splashproof

bigadaj wrote: »

You were presumably contracted in for part or all of your working life.

How old are you and how many years were you contracted out, those facts should lead to the calculation that you've received.

Two calculations are completed, one based on the old rules and one under the new rules, and you receive the higher of the two. So presumably your calculation under the old system exceeded the new single tier pension which is why you will receive the sum stated.

I'm 56 (but look 19 ), to my knowledge I wasn't contracted out ?

bigfreddiel

splashproof wrote: »

I'm 56 (but look 19 ), to my knowledge I wasn't contracted out ?

Looks like you answered your own question.

Nice one, fj

xylophone

£165 when I reach retirement age - where did the extra £9.35 a week come from ?

It seems likely that this will be your calculation under the old rules - you are entitled to a full basic state pension (£119. 30) plus any SERPS/S2P earned because your were contracted in.

In your case, this appears to equate to around £45 a week.

The amount is over the full new state pension - the £9.65 is your "protected payment".

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181229/single-tier-pension.pdf

The above is a little "old hat" now, (figures out of date) but see "Jenny" p16.

See also P52.

grey_gym_sock

if you weren't contracted out (and you were an employee), then you were contracted in. contracting out involved making an active decision to join a private pension.

since you have more than £156.65, that means you have more on the old rules (because the max on the new rules is £156.65). it also means that your state pension entitlement won't grow at all after 5 april 2016, apart from indexation (which is currently the "triple lock" on the first £156.65, but only CPI on the rest).

the old rules calculation is:
basic pension: up to £119.30 (if you have 30+ years' contributions, or a proportion of that if you have less)
plus
additional pension, which is a vaguely earnings-related amount, for years when you're contracted in

splashproof

Thanks for the explanation. At least I'm ready to have a big spend up in 10 years time