State Pension

Pat38493

Hi,

If the UK Gov web site says I will receive the full maximum state pension, is this correct in all cases?

I remember being told by the HR dept of my company many many years ago, that I might receive lower state pension because we are "contracted out".

However if I log into the gov.uk website and look, it says I will receive the full maximum state pension of £9300.  I assume this is now correct?

Dazed_and_C0nfused

The State Pension rules changed in 2016.

Those that were contracted out tend to be winners under the new system.

Their starting amount (one off calculation in 2016) took into account the period of contracting out.

If you have long enough post 2016 to build up additional years you can reach the standard new State Pension of £179.60/week.  Despite having paid lower NI for possibly a very long time.

Those that were contracted out and reach State Pension age shortly after 2016 aren't all as fortunate as they may not have sufficient years to reach £179.60.

Do you really mean you willget the standard new State Pension (the "maximum" is > £300/week) or do you have further years to contribute to actually reach that?  Your full forecast should explain one way or the other.

sevenhills

Pat38493 said:

I remember being told by the HR dept of my company many many years ago, that I might receive lower state pension because we are "contracted out".

However if I log into the gov.uk website and look, it says I will receive the full maximum state pension of £9300.  I assume this is now correct?

I was also contracted out. My forecast is £9,371.27 a year.

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

My retirement date is 2029

Pat38493

sevenhills said:

Pat38493 said:

I remember being told by the HR dept of my company many many years ago, that I might receive lower state pension because we are "contracted out".

However if I log into the gov.uk website and look, it says I will receive the full maximum state pension of £9300.  I assume this is now correct?

I was also contracted out. My forecast is £9,371.27 a year.

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

My retirement date is 2029

Yes mine is about the same - I just want to make sure this is the correct true amount I will get and can't be adjusted downwards later because of "contracting out" situation.

Dazed_and_C0nfused

Pat38493 said:

sevenhills said:

Pat38493 said:

I remember being told by the HR dept of my company many many years ago, that I might receive lower state pension because we are "contracted out".

However if I log into the gov.uk website and look, it says I will receive the full maximum state pension of £9300.  I assume this is now correct?

I was also contracted out. My forecast is £9,371.27 a year.

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

My retirement date is 2029

Yes mine is about the same - I just want to make sure this is the correct true amount I will get and can't be adjusted downwards later because of "contracting out" situation.

Have you looked at (and read in full) the COPE part of your forecast?

Pat38493

Dazed_and_C0nfused said:

The State Pension rules changed in 2016.

Those that were contracted out tend to be winners under the new system.

Their starting amount (one off calculation in 2016) took into account the period of contracting out.

If you have long enough post 2016 to build up additional years you can reach the standard new State Pension of £179.60/week.  Despite having paid lower NI for possibly a very long time.

Those that were contracted out and reach State Pension age shortly after 2016 aren't all as fortunate as they may not have sufficient years to reach £179.60.

Do you really mean you willget the standard new State Pension (the "maximum" is > £300/week) or do you have further years to contribute to actually reach that?  Your full forecast should explain one way or the other.

I was not aware you could get 300/week - on the website it says 179.60 per week is the "maximum" and this is what I will get?

Dazed_and_C0nfused

For the next decade or more everyone reaching State Pension age will fall under transitional rules.

Not only did those rules give yourself the potential to reach £179.60/week despite paying less NI for possibly many years but they also protected the amounts for people  who had already accrued more than the standard new State Pension.

Basically only those who had accrued more than the standard amount by April 2016 will get that when they reach State Pension age.  They cannot improve on it but will get the annual inflation increase like everyone else.

xylophone

I was not aware you could get 300/week - on the website it says 179.60 per week is the "maximum" and this is what I will get?

https://www.which.co.uk/money/pensions-and-retirement/state-pension/your-state-pension-and-benefits/state-second-pension-and-serps-ad9mc1v6fq6t

On 6/4/16, two calculations were done for all those under SPA in order to establish their individual "starting amounts" for new state pension.

Old Rules

NI years/30 x  Full Basic  of £119.30 + (Additional State Pension - (if any) Deduction for Contracting Out).

New Rules

(NI years/35 x Full NSP of £155.65) - (if any) Contracted Out Pension Equivalent.

The starting amount was the higher of the two.

See https://forums.moneysavingexpert.com/discussion/comment/78973501#Comment_78973501

jem16

Pat38493 said:

sevenhills said:

Pat38493 said:

I remember being told by the HR dept of my company many many years ago, that I might receive lower state pension because we are "contracted out".

However if I log into the gov.uk website and look, it says I will receive the full maximum state pension of £9300.  I assume this is now correct?

I was also contracted out. My forecast is £9,371.27 a year.

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

My retirement date is 2029

Yes mine is about the same - I just want to make sure this is the correct true amount I will get and can't be adjusted downwards later because of "contracting out" situation.

What exactly does your forecast say? Is there more than one figure on your forecast? If there is what does the one that says what you have built up till April 2021?

Audaxer

Pat38493 said:

sevenhills said:

Pat38493 said:

I remember being told by the HR dept of my company many many years ago, that I might receive lower state pension because we are "contracted out".

However if I log into the gov.uk website and look, it says I will receive the full maximum state pension of £9300.  I assume this is now correct?

I was also contracted out. My forecast is £9,371.27 a year.

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

My retirement date is 2029

Yes mine is about the same - I just want to make sure this is the correct true amount I will get and can't be adjusted downwards later because of "contracting out" situation.

If you were contracted out that will have been taken into account in your forecast. Just to make sure you definitely don't have any further NI contributions to make to get to the maximum amount, it would be helpful if you advised us of the following:

• What amount does your Statement show under "Estimate based on your National Insurance record up to 5 April 2021"
• Below that does it show an amount for how much you can increase your forecast to? 

Pat38493

Audaxer said:

Pat38493 said:

sevenhills said:

Pat38493 said:

I remember being told by the HR dept of my company many many years ago, that I might receive lower state pension because we are "contracted out".

However if I log into the gov.uk website and look, it says I will receive the full maximum state pension of £9300.  I assume this is now correct?

I was also contracted out. My forecast is £9,371.27 a year.

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

My retirement date is 2029

Yes mine is about the same - I just want to make sure this is the correct true amount I will get and can't be adjusted downwards later because of "contracting out" situation.

If you were contracted out that will have been taken into account in your forecast. Just to make sure you definitely don't have any further NI contributions to make to get to the maximum amount, it would be helpful if you advised us of the following:

• What amount does your Statement show under "Estimate based on your National Insurance record up to 5 April 2021"
• Below that does it show an amount for how much you can increase your forecast to? 

Estimate based on your national insurance record up to 5th April 2021 - £179.60 / week £9371.27 / year

Then it says "You cannot improve your forecast any more"

This seems pretty clear, but I just wanted to make sure that there is not some catch that is not shown on that website.