Why can't I increase my state pension?

pandora205

I have just rechecked my state pension forecast online and I have 45 years of full contributions (up till last April). For much of this time I have been contracted out. My state pension forecast for 2019 is £131.41. My NI record shows an unbroken record since age 17. It says this is the amount I can get if I contribute to 15th April 2018, almost a year before my state retirement date though.

Speaking to colleagues on a pension course today, they have been given the option to top up their state pension but my forecast makes no reference to this. Is it possible for me to increase my state pension at all?

I appreciate that I have a good occupational pension but thought there might be a way I could increase my state pension.

Thanks

Dazed_and_confused

What have you actually earned up to 05:04:2017, is this £131.41 or a different figure.

Realistically the problem is probably because you are very close to SPA so no time to add much to your new State Pension amount

pandora205

Dazed_and_confused wrote: »

What have you actually earned up to 05:04:2017, is this £131.41 or a different figure.

Realistically the problem is probably because you are very close to SPA so no time to add much to your new State Pension amount

I've earned £126.85 up to 5 April 2017. The statement says: Forecast if you contribute until 5 April 2018 £131.41 a week
£131.41 is the most you can get

I then viewed my NI record and it shows full years since 1975 plus 'our records show you have 3 full years up to 5 April 1975'

Dazed_and_confused

Looks like you can add one more year (so two in total on top of your original April 2016 starting amount) but I guess your birthday (pre 05:04:2019?) is preventing you getting any further years.

Silvertabby

If you work/pay NI up to April 2018, then reach State pension age less than a year later, you won't have time to make any further contributions - so £131.41 is your maximum.

pandora205

Thanks...... I'd be willing to pay in a lump sum but don't suppose that's permitted

GunJack

also, the year in which you become eligible for your SP doesn't count, so the last year you can make count is 17-18 by the sound of it..you've still done slightly better under the newSP than you would have done under the old (up to Apr 2016) system

Silvertabby

Thanks...... I'd be willing to pay in a lump sum but don't suppose that's permitted

Lump sums are permitted - but if you reach State pension age before 5 April 2019 then it would be money wasted because you couldn't be credited with a full (financial) year.

pandora205

Silvertabby wrote: »

Lump sums are permitted - but if you reach State pension age before 5 April 2019 then it would be money wasted because you couldn't be credited with a full (financial) year.

Thanks....... My date is March 19, so yes it would be wasted.

xylophone

At 6/4/16 two calculations were done

Full Basic State Pension of £119.30 (because you had at least 30 years NI) + (ASP - Contracted Out Deduction).

Full New State Pension (because you had at least 35 years NI) - COPE (rebate derived amount).

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf (but for BSP read £119.30 and for NSP read £155.65)

Your starting amount was the higher of the two.

This was still lower than a full NSP so you are able to increase it by contributions up to your State Pension Age ( but see re your birthdate in post 4 above).

'our records show you have 3 full years up to 5 April 1975'

See post 2.

https://forums.moneysavingexpert.com/discussion/4401035

Silvertabby

You've still done slightly better under the newSP than you would have done under the old (up to Apr 2016) system Posted by GunJack

As Pandora has always/nearly always been contracted out then her estimate will be under the old rules.

I was contracted out from 1978 until 2016 (RAF and then Local Government) and expected my foundation amount to be the old State pension (£120) plus a bob or two of (pre 1975) graduated pension. It's actually £140 per week because of the 2002 SP2 top up for lower-than-average paid workers, as I took a drop in pay/less stressful job when I retired from the RAF.

I'm guessing that Pandora also has a bit of graduated pension/SP2 top up.