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State Pension forecast less than full amount - NOT contracted out

13

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  • molerat
    molerat Posts: 35,003 Forumite
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    edited 13 November 2017 at 10:25AM
    His pension comes into payment under the new rules but the April 2016 starting amount would have been calculated as the higher of the old or new rules figures.

    Basic State Pension and New State Pension

    Did he get a pension forecast any time before April 2016 as figures from that would add a lot of clarity to the situation. Are you certain that there was no S2P ? There should have been at least a small amount if he was employed from 2015 and possibly some from earlier year's employment.

    My calculations are that he would have 20 years if that current figure is under new rules so it doesn't make sense. I did a calculation yesterday, running back to April 2016, but I came out with an extra year's worth on top of that forecast maximum achievable figure.
  • molerat wrote: »
    His pension comes into payment under the new rules but the April 2016 starting amount would have been calculated as the higher of the old or new rules figures.

    Basic State Pension and New State Pension

    Did he get a pension forecast any time before April 2016 as figures from that would add a lot of clarity to the situation. Are you certain that there was no S2P ? There should have been at least a small amount if he was employed from 2015 and possibly some from earlier year's employment.

    My calculations are that he would have 20 years if that current figure is under new rules so it doesn't make sense. I did a calculation yesterday, running back to April 2016, but I came out with an extra year's worth on top of that forecast maximum achievable figure.



    Thank you, Molerat. I will check our files this evening - I know we received an NI statement for him a couple of years ago on paper, as it showed all the gaps and amounts he needed to pay. But I don't think it was a Pension Forecast, I think we've only looked at this online. I will have a look and update you later.


    There is no mention of S2P anywhere. He has been employed full time PAYE since about May 2015 and contributes a small amount to their company pension. In previous years he has never worked for a company as PAYE contributing to any pension.


    He has many years prior to 2006 on his NI statement which state 'Year is not full - too late to pay' (he was self employed) but we are hoping he may just about have enough years by the time he retires, for a full State Pension.


    Please can you advise the amount that each year's NI contributions is worth as State Pension? I seem to recall the figure is £4 something for each year. Is this figure the same for pre-2016 and post-2016 contributions or are they different? I'm trying to work out the calculations & it would help to know this figure.

    Thanks - I really appreciate everyone's help with this!
  • molerat
    molerat Posts: 35,003 Forumite
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    If his starting amount is based on the old scheme then each pre 2016 year is worth £4.08 at 2017 rates, if based on the new scheme then £4.56. All post 2016 years will be at the new scheme rate.

    I hope you are now getting to grips with understanding the new simpler flat rate pension :D
  • Did he get a pension forecast any time before April 2016 as figures from that would add a lot of clarity to the situation. Are you certain that there was no S2P ? There should have been at least a small amount if he was employed from 2015 and possibly some from earlier year's employment.

    Hello Molerat, I'm at home now and have delved into our old paperwork. Hopefully I've found some info that may help our calculations! Husband received a State Pension estimate dated 26th March 2012, which is based on his NI record as at 05/04/11.

    The letter says: "Your State Pension estimate as at 26 March 2012
    Total State Pension £61.08 per week
    This total includes your Basic State Pension £51.08 a week
    Additional State Pension £10.00 a week
    Graduated Retirement Benefit £0.00 a week

    You currently have 15 qualifying years
    The full basic State Pension is £102.15 a week in 2011/12"

    The Additional State Pension is a mystery to me, as husband is adamant that he was never contracted out of SERPS - he worked PAYE for one company from 1999-03 but didn't pay into a pension.

    Nowhere on his current online forecast does it say anything about COPE/SERPS/S2P/Additional State Pension.

    ALSO

    Husband received a printout of his NI record dated 06/10/15 - this shows 15 qualifying years up to 05/04/14.

    Since then he has made Voluntary Contributions for 2006/7 & 2007/8, plus 2 full years' PAYE 2015/16 & 2016/17, making his current total of 19 years as at 05/04/17.

    So when his starting amount was calculated as at 06/04/16, he would have had 15 qualifying years, not 16 (sorry for the mistake).

    I hope this info may help - I will get my calculator out too.
  • Linton
    Linton Posts: 18,345 Forumite
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    ....

    The Additional State Pension is a mystery to me, as husband is adamant that he was never contracted out of SERPS - he worked PAYE for one company from 1999-03 but didn't pay into a pension.

    Nowhere on his current online forecast does it say anything about COPE/SERPS/S2P/Additional State Pension.

    Additional State Pension is SERPS/S2P. Its name changed several times. It was merged into the New State Pension in April 2016. If he was never contracted out he wont be affected by COPE.
  • Silvertabby
    Silvertabby Posts: 10,329 Forumite
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    edited 13 November 2017 at 8:16PM
    he worked PAYE for one company from 1999-03 but didn't pay into a pension
    Then he paid into SERPS/SP2, being the additional State pension for those who weren't contracted out (in an occupational pension).
  • Linton wrote: »
    Additional State Pension is SERPS/S2P. Its name changed several times. It was merged into the New State Pension in April 2016. If he was never contracted out he wont be affected by COPE.

    Thanks Linton - would his current online State Pension forecast include the amount of Additional State Pension which the 2012 letter referred to as £10 per week? It doesn't make this clear and I don't know what that would equate to in £. Now I've read a bit more I think I can see what you mean - he was never contracted out, therefore he should be entitled to Additional State Pension which is now included in the New State Pension?
  • Then he paid into SERPS.

    Thank you - it's beginning to make a bit more sense, I was thinking about it the wrong way round!
  • Linton
    Linton Posts: 18,345 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Thanks Linton - would his current online State Pension forecast include the amount of Additional State Pension which the 2012 letter referred to as £10 per week? It doesn't make this clear and I don't know what that would equate to in £. Now I've read a bit more I think I can see what you mean - he was never contracted out, therefore he should be entitled to Additional State Pension which is now included in the New State Pension?

    The introduction of the new scheme was meant to be cost neutral. So the increase in the general state pension for everyone was partially paid for by incorporating the ASP up to the increased value of the new state pension. So now it is irrelevent for people such as your husband who had accrued a small amount of ASP.
  • datlex
    datlex Posts: 2,252 Forumite
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    OP what type of National Insurance Contributions did your OH pay.

    https://www.gov.uk/national-insurance/what-national-insurance-is-for
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
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