HMRC pension estimate

p00hsticks

Nationwide8 wrote: »

I've missed this,Why ??

I contributed NI for 3mths April 2015-April 2016 then early retired.

So it would make little difference to pay the "gap" for 2015 -2016 ?

You've said previosuly that your pension statement shows that as at April 2015 you had 37 NI years and that your pension forecast was around £125. you;ve also mentioned that you have a publicsector pension and so have been contracted out at least some of your working life.

As part of the new state pension transition, DWP will have used your record to calculate your pension under both old and new rules, and the higher amount will form your starting amount as at 6/4/16.

Old rules give you £119.30 for 30 NI years. plus any SERPS/ S2P additional pension earned through being contracted in.

New rules give you £155.65 for 35 years minus your COPE amount.

As you have 37 NI years, neither calculation amount will be improved by buying an additonal year for 2015-16.

However, as your startin amount is under the maximum amount of £155.65, any additonal NI years your earn or buy going forward from April 6th 2016 will increase that amount by around £4.45 (1/35th of the £155.65 maximum) until the maximum is reached or you reach state pension age, whichever is sooner.

Nationwide8

p00hsticks wrote: »

You've said previosuly that your pension statement shows that as at April 2015 you had 37 NI years and that your pension forecast was around £125. you;ve also mentioned that you have a publicsector pension and so have been contracted out at least some of your working life.

As part of the new state pension transition, DWP will have used your record to calculate your pension under both old and new rules, and the higher amount will form your starting amount as at 6/4/16.

Old rules give you £119.30 for 30 NI years. plus any SERPS/ S2P additional pension earned through being contracted in.

New rules give you £155.65 for 35 years minus your COPE amount.

As you have 37 NI years, neither calculation amount will be improved by buying an additonal year for 2015-16.

However, as your startin amount is under the maximum amount of £155.65, any additonal NI years your earn or buy going forward from April 6th 2016 will increase that amount by around £4.45 (1/35th of the £155.65 maximum) until the maximum is reached or you reach state pension age, whichever is sooner.

Thanks,this is all new to me..

Am going to wait until my details are updated with a pension estimate that includes up to April 2016 and work from there.

Looking simply had thought it might be worth paying voluntary contributions for the "gap" of 9 mths in April 15- April 16 as that would at least complete a year ???
Then I have 7 ( poss 6 as one post above said last yr adds little ) left to either voluntary contribute to if I choose or contribute to via part time working possibly in the future.

gallygirl

Nationwide8 wrote: »

So have just checked my pension estimate on the HMRC website..
It's as follows..
Pension in 2028

Forecast IS £155.66

But then underneath is says
... pension estimate based on NI contributions up to 2nd April 2015 =£125
..if contribute another 8yrs = £155

I have 37yrs full yrs NI contributions...

...

So is my pension estimate £155.65 or only that if I pay 8 more yrs contributions ??

My forecast says:
[FONT=&quot]Your State Pension[/FONT]

[FONT=&quot]You can get your State Pension on xxxxx 2028 when you’ll be 67, your forecast is[/FONT]

[FONT=&quot]£160.43 a week[/FONT]

[FONT=&quot]£697.58 a month, £8,371.01 a year[/FONT]

[FONT=&quot]Your forecast[/FONT]
· [FONT=&quot]is not a guarantee and is based on the current law[/FONT]
· [FONT=&quot]is based on your latest National Insurance record (5 April 2015)[/FONT]
· [FONT=&quot]does not include any increase due to inflation[/FONT]
[FONT=&quot]£160.43 is the most you can get[/FONT]
[FONT=&quot]You cannot improve your forecast any more.[/FONT]
[FONT=&quot]You’ll still need to pay National Insurance contributions until 2028 as they fund other state benefits and the NHS.[/FONT]
I don't have the wording in pink that Nationwide has so I assume that I will get the maximum they've said (assuming no more rule changes!!!) with no further NI conts? I've retired early and currently living overseas so won't be making any more conts.

Nationwide8

gallygirl...I'm obviously no expert but reading the wording in your forecast and how it differs from mine,yours is saying you cannot improve, I'd say you can't buy back any more and you're on £160 anyway...

Still mulling all this over about possibly buying back "gaps" in future years if I do no more paid work,the £125 a week forecast now and my private monthly pension would take me over the P.A limit ( obs based on current P.A ) so I'm going to get taxed if I reach SPA on any more state pension that puts me more over that,so I've sort of "lost" 20% ( the tax rate ) of the extra I get anyway..

molerat

gallygirl wrote: »

My forecast says:
[FONT=&quot]Your State Pension[/FONT]

[FONT=&quot]You can get your State Pension on xxxxx 2028 when you’ll be 67, your forecast is[/FONT]

[FONT=&quot]£160.43 a week[/FONT]

[FONT=&quot]£697.58 a month, £8,371.01 a year[/FONT]

[FONT=&quot]Your forecast[/FONT]
· [FONT=&quot]is not a guarantee and is based on the current law[/FONT]
· [FONT=&quot]is based on your latest National Insurance record (5 April 2015)[/FONT]
· [FONT=&quot]does not include any increase due to inflation[/FONT]
[FONT=&quot]£160.43 is the most you can get[/FONT]
[FONT=&quot]You cannot improve your forecast any more.[/FONT]
[FONT=&quot]You’ll still need to pay National Insurance contributions until 2028 as they fund other state benefits and the NHS.[/FONT]
I don't have the wording in pink that Nationwide has so I assume that I will get the maximum they've said (assuming no more rule changes!!!) with no further NI conts? I've retired early and currently living overseas so won't be making any more conts.

Unless there are any contributions to add for 15-16 then you will get £160.43 at today's rates. £155.65 of that will increase annually with the triple lock and the remaining £4.78 will increase with CPI. Nothing you do can increase that amount unless you have less than 30 pre 2016 years and little or no COPE amount.

Nationwide8

As it stands I assume "my" £125 will increase with triple lock or just CPI ?

GunJack

Nationwide8 wrote: »

As it stands I assume "my" £125 will increase with triple lock or just CPI ?

that will be at triple-lock (while it still applies) until you reach pension age, then triple-lock (while it still applies) going forward past that..

Bootsox

Nationwide8 wrote: »

Thanks,this is all new to me..

Am going to wait until my details are updated with a pension estimate that includes up to April 2016 and work from there.

Looking simply had thought it might be worth paying voluntary contributions for the "gap" of 9 mths in April 15- April 16 as that would at least complete a year ???
Then I have 7 ( poss 6 as one post above said last yr adds little ) left to either voluntary contribute to if I choose or contribute to via part time working possibly in the future.

I wrote to the Government Pensions Service on 9th June with a very similar question, still waiting for a response!

molerat

Bootsox wrote: »

I wrote to the Government Pensions Service on 9th June with a very similar question, still waiting for a response!

Which, when it eventually arrives, will likely not make the situation any clearer. They are unlikely to give you a straight answer, if you want that you will have to pay for advice. It is fairly simple to work out for yourself though.

Gers

Bootsox wrote: »

I wrote to the Government Pensions Service on 9th June with a very similar question, still waiting for a response!

Last week I rang both DWP and HMRC to establish what I can / should pay. This was after getting some advice here. Both departments were very helpful and told me exactly what I could do to pay two years - this tax year and the next one - to boost my SP to £155pw. I have 46 full years but many of which were contracted out.

I will pay the class 3 contributions. Choices were pay by DD each month, pay with a bill quarterly or pay with a bill in arrears at the end of each tax year.

Calling them was easy and fast - no long queues.