Full state pension is forecast but ?

bostonerimus

molerat wrote: »

Yes many people have been affected by contracting out but unfortunately for your argument it is mostly in a positive way. Just because many cannot (or cannot be bothered to) understand it, the benefits of what they gained from the pension they were contracted into, the reduced amount of NI they paid and the effect it has on the (new) state pension does not mean it is bad thing.

Comparing a national insurance scheme with a pension probably invested in the stock and bond markets is fraught with problems. Adding risk to someone's retirement portfolio without them fully understanding the potential consequences is a big issue and I think it was presented as a "fait accompli". Has a large scale study of the performance if the contracted out pensions compared to the state pension been conducted? And how many people take the time to check on their record and make extra payments. That would be ideal, but the state pension is a safety net and I don't like people having to patch holes created years ago.

I certainly like the new flat rate pension as under the old rules I would have only qualified for the basic state pension, so my pension in todays pounds has gone up by around £40/week.

Silvertabby

Yes many people have been affected by contracting out but unfortunately for your argument it is mostly in a positive way. Just because many cannot (or cannot be bothered to) understand it, the benefits of what they gained from the pension they were contracted into, the reduced amount of NI they paid and the effect it has on the (new) state pension does not mean it is bad thing.

Myself and MrsM have known how much pension we would be getting since early retirement back in 2009 and planned accordingly.The government have thrown a spanner in the works by giving MrsM even more than we planned and then giving us both the opportunity to cheaply add even more still but hey, you have to take the rough with the smooth Posted by molerat

Exactly. Mr S retired at 58 (had planned for 60 but he was offered a redundancy package that was too good to refuse) and I retired at 60.

We have both been contracted out since 1978 and so expected to receive the basic State pension of £119 per week plus a bob or two of graduated pension.

Reality is that my foundation amount was £138 per week due to the SP2 top up, even though my low pay was entirely due to my decision to work part time since 2005, and Mr S is looking at £140 per week with his bit of medium pay SP2 top up and his 2 years of pension credit age NI credits. And, of course, we have the option to pay to top up our State pensions to the max £159 per week. Bargain!

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elfina_2

Dazed_and_confused wrote: »

Elfina

Are you sure you've read the forecast correctly?

From the other details you've supplied it sounds as though the full amount would only be payable if you make further contributions over the next few years (each extra year adds approx £4.50 until you reach the full £159).

I would go back onto your personal tax account and read the state pension forecast carefully as it wouldn't surprise me if your actual entitlement built up so far is less than £159.

Yes, that's how it read. Are you saying that could be wrong ? I need to go back for another look

Silvertabby

Yes, that's how it read. Are you saying that could be wrong ? I need to go back for another look

Yes, I really think that you're looking at your future possible maximum pension rather than your foundation amount.

Check your COPE amount as well.

elfina_2

elfina wrote: »

Yes, that's how it read. Are you saying that could be wrong ? I need to go back for another look

is not a guarantee and is based on the current law
is based on your National Insurance record up to 5 April 2017
does not include any increase due to inflation
£159.55 is the most you can get

You cannot improve your forecast any more.

If you’re working you may still need to pay National Insurance contributions until 14 May 2029 as they fund other state benefits and the NHS.

View your National Insurance record
Putting off claiming

You can put off claiming your State Pension from 14 May 2029. Doing this may mean you get extra State Pension when you do come to claim it. The extra amount, along with your State Pension, forms part of your taxable income.

elfina_2

.

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Summary
37
years of full contributions

12
years to contribute before 5 April 2029

2
years when you did not contribute enough

molerat

Is there no mention of contracting out or COPE ? Very strange if you were an LGPS member as that is a contracted out scheme and should be mentioned even if it makes no difference to the outcome. Something is not right with that forecast so you need to contact the NI contributions centre https://www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-enquiries-for-employees-and-individuals

Silvertabby

this is not a guarantee and is based on the current law
is based on your National Insurance record up to 5 April 2017
does not include any increase due to inflation
£159.55 is the most you can get

You cannot improve your forecast any more.

Elfina - this is really odd. I just can't see how your current estimate can be £159 per week when you have been contracted out for 19 years. Were you actually in the LGPS for all that time - or did you opt out at any point? By being in the LGPS I mean actually paying into the Local Government Pension Scheme, not just employed by a Local Authority.

As I said before, when DWP say 'full year' they mean calendar year of contributions, not a full qualifying year for the new single tier pension.

There's no mention of a COPE amount in your State pension forecast - is it on the next page?

When you were made redundant, you would have been issued with a LGPS deferred benefit statement - can you dig this out and post the dates you were in the scheme?

Linton

From the data the OP provides it seems that the forecast may well be based on her paying NI for some or all of the 12 years before SPA. However we need to see more of the forecast. There must be more to it than a list of NI years.

Dazed_and_confused

elfina

Where have you obtained your info from? It seems to be slightly different format to what I see,

You can get your State Pension on Day Month Year. Your forecast is
£159.55 a week
£693.76 a month, £8,325.09 a year
Your forecast

is not a guarantee and is based on the current law
does not include any increase due to inflation
You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2017
£XXX.XX a week
Forecast if you contribute another 7 years before 5 April 20XX
£159.55 a week
£159.55 is the most you can get

You cannot improve your forecast any further, unless you choose to put off claiming.

If you’re working you may still need to pay National Insurance contributions until Day Month Year as they fund other state benefits and the NHS.

View your National Insurance record
You’ve been in a contracted-out pension scheme

Like most people, you were contracted out of part of the State Pension.