State pension forecast query

Tom99

GunJack wrote: »

With 35 yrs of pre-2016 non-contracted-out NI, you'd expect there to be a reasonable amount ABOVE £164.odd due to SERPS/S2P, surely?

A lot can be NI credits typically the years when child allowance was paid and you used to get a credit until the youngest child was 16, now reduced to 12 I think.

Tom99

Devo wrote: »

EDIT - and the other question is when does he need to pay them by? All of them before April next year or could he do just one initially?

His choice but they will be more expensive after 5th April 2019

Devo

Tom99 wrote: »

His choice but they will be more expensive after 5th April 2019

Okay, thanks. So he definitely needs 3 more years. Not the 1 that it says in my original post?

SnowMan

Tom99 wrote: »

[FONT=Verdana, sans-serif]That's not correct. If you have not been contracted out and have 35yr of full NI before 2016 you will get £164.35pw[/FONT]

The generality is true that 35 years (based on a mix of pre and post 2016 years) don't automatically get you to £164.35pw and that's what a lot of people don't understand.

There will always be individual scenarios where 35 years does get you to exactly £164.35pw. Given the original poster was asking why his dad wouldn't get £164.35pw despite having 35 Qualifying Years, it would have been silly to highlight scenarios where 35 years would get someone to £164.35pw!

If you've got 35 contracted-in years, then you may get more than £164.35pw in any case, because of additional state pension.

3 yrs are needed to bridge the gap between £145.47 and £159.56 so 2018/19 as well

I mentioned in my original post that 2018/2019 was needed as well.

This assumes that 2018/2019 is a Qualifying Year

SnowMan

Devo wrote: »

Okay, thanks. So he definitely needs 3 more years. Not the 1 that it says in my original post?

From earlier

The year to get him to £150.17pw is the 2018/2019 year. And the years to get him to £159.56pw are the 2016/2017 and 2017/2018 years (on top of the 2018/2019 year).

So 2018/2019 is the 1 year and the 2016/2017, 2017/2018 and 2018/2019 years are the 3 years.

So yes, 3 years, but it must be those specific years 2016/2017, 2017/2018 and 2018/2019.

molerat

Devo wrote: »

Okay, thanks. So he definitely needs 3 more years. Not the 1 that it says in my original post?

Yes, the difference between the current amount of £145.47 and the maximum attainable amount of £159.96 is £14.49 which divided by £4.70 is 3. As he already is in excess of his maximum 30 pre 2016 years, 30 is because of his reasonably large COPE, buying any of those years will not add value, so 16-17, 17-18 and 18-19 are the ones to buy. 16-17 needs to be purchased before April 2019 to stay at that price, after then it will increase to £780, and the rest before his retirement date.

SnowMan

Devo wrote: »

He's lived permanently in the Philippines (retired, not working) since 2007.

As I say I'm not an expert on cross-border issues but he should be OK to pay class 3.

This seems to be a good link to the situation

https://www.taxation.co.uk/Articles/2014/10/07/331801/more-window-cleaning

and

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/668585/NI38_12_17.pdf

The Phillipines is a country which does have a reciprocal agreement with the UK (see link below), so should get increases on his state pension

https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension

Tom99

[FONT=Verdana, sans-serif]

SnowMan wrote: »

There will always be individual scenarios where 35 years does get you to exactly £164.35pw. Given the original poster was asking why his dad wouldn't get £164.35pw despite having 35 Qualifying Years, it would have been silly to highlight scenarios where 35 years would get someone to £164.35pw!

[/FONT]
[FONT=Verdana, sans-serif]That's true, but still wrong to say only 19yr olds and younger will get £164.35 which was the mistake I was pointing out.[/FONT]

SnowMan

Devo wrote: »

By the looks of it, he was contracted out. It says "Contracted Out Pension Equivalent (COPE)
Your COPE estimate is £60.31 a week.

They will have worked out his Starting Amount at 6th April 2016 based on the higher of the calculation on the old and new bases

In his case it would have been

Old basis: £137.77pw (= 30/30 x 119.30 + 18.47 additional pension)
New basis: 35/35 x 155.65 - 60.31 = 95.34pw

So the old of £137.77pw is higher and adding in uprating to 2018/2019 gives you his current figure of £145.47pw.

It's the £60.31pw deduction that stops 35 years being enough to get him to £164.35pw.

Had the COPE been zero then the new basis would have been higher and 35 years would have been enough.

GunJack

Tom99 wrote: »

A lot can be NI credits typically the years when child allowance was paid and you used to get a credit until the youngest child was 16, now reduced to 12 I think.

His dad probably wasn't getting child-related credits