HMRC pension estimate

xylophone

More examples etc here https://forums.moneysavingexpert.com/discussion/comment/70516332#Comment_70516332

Nationwide8

otb666 wrote: »

i have done on line forcast and have 33 years i am 50 estimate 143.85pw now when i retire 155.65pw another 3years needed- i have a COP of 13.77pw i thought i would need a further 4 years to make up my COP-Just rung them and they said no the 143.85pw included the COP being deducted already therefore do i need to do a further 3 or 7 years, i have worked always and for same company since 1994 i thought i was contracted out quite early on and have two kids 24 and 18yrs old, I do not really understand this at all

So I have 37 yrs "full" contributions and have a forecast of £125 ?

Not sure how that works ? Yes I was contracted out but not that early on in my working life..

GunJack

Nationwide8 wrote: »

So I have 37 yrs "full" contributions and have a forecast of £125 ?

Not sure how that works ? Yes I was contracted out but not that early on in my working life..

a full year of NI under the system that's just ended, got you 1/30 of a basic state pension, which ended up at £119 per week. Any excess over the 119 is down to SERPS/S2P elements, the earnings-related bit.

Remember, NI isn't just about building state pension entitlement, it's also about healthcare and other welfare state benefits (should you need them), which may not be payable without having made enough current NI contributions, hence why you still pay NI on earnings over the threshold, even if you've built up enough for full basic SP.

The new system, for anyone STARTING WORK in 16-17, needs 35 years of NI for the full single-tier state pension.

Nationwide8

^^ Thank you,but how does 37 yrs full contributions equate to a pension of £125 and 33 yrs £145 ?
Edit...Ahhh thats the SERPS bit ? The more you earned the higher your estimate is than someone who earned a lower salary ?

GunJack

Nationwide8 wrote: »

^^ Thank you,but how does 37 yrs full contributions equate to a pension of £125 and 33 yrs £145 ? Ahhh thats the SERPS bit ?

yes, and under the old system anything over 30 years effectively doesn't count for pension purposes. So, he had more SERPS than you.

Nationwide8

Yes so the more you earned in that 30yrs means the more SERPS you have ?

xylophone

See http://adviser.royallondon.com/pensions/technical-central/information-guidance/general/state-second-pension-explained/

minty777

xylophone wrote: »

[/B]

It was possible to earn some S2P even if contracted out.

https://en.wikipedia.org/wiki/State_Second_Pension


S2P gives all employees earning up to £32,592 a year (in 2011/12) a larger pension than SERPS, regardless of whether they are "contracted out" or not - with most help going to those in the '"lowest"' earnings (up to £14,400 a year in 2011/12) - known as the "LET" or '"Low Earnings Threshold"'.

Contracting out ended for DC schemes from April 6 2012 and for DB Schemes from 6 April 2016.

Does that mean that from 6/5/2002 i should have received some S2P even though i have been contracted out until 05/05/2016?

xylophone

Does that mean that from 6/5/2002 i should have received some S2P even though i have been contracted out until 05/05/2016?

Any such entitlement would depend on earnings - Google State Second Pension
Standard Note:
SN 0255
Last updated:
10 January 2013
Author:
Djuna Thurley

otb666

re GunJack prevous message(5 back)- the old system anything over 30 years effectively doesn't count for pension purposes. So, he had more SERPS than you. -i m a she and i worked 12 hours a week between 98 and 2008 gradually increased to 30 hours a week=£15k pa so i was a lower earner and therefore protected from contracted out implications?