Annual state pension amount

thatoldchestnut

How is the annual amount of state pension calculated assuming you've got all 35 years? When I look at the current year (2021/22) on Government Gateway, it says £179.60 per week, £780.94 per month, £9,371.27 per year. But multiplying the weekly amount by 52 weeks gives £9,339.20, and dividing the weekly amount by 7 days and multiplying by 365 days gives £9,364.85.

Assuming the new weekly amount for 2022/23 is £185.15, how do I calculate what the new yearly amount will be?

Dazed_and_C0nfused

In every 4 years there are 1461 days.

Averaging 365.25 days per year.

365.25 ÷ 7 = 52.1785714285

52.1785714285 x £179.60 = £9,371.27

Same logic applies to the monthly amount.  Despite not being able to get your State Pension monthly 🙄

NB.  Having 35 years doesn't necessarily get you to £179.60 but that's a whole different story!

thatoldchestnut

Thank you! My forecast does say I'll get £179.60 if I contribute 35 years before state pension age but is that not necessarily the case? I have been in the local government pension scheme since 2009.

Edited to add: I'm 40 and have another 17 years of contributions to make before I get to 35.

Dazed_and_C0nfused

The new rules only apply in full to those starting to pay NI from 2016 onwards.

Everyone else comes under transitional rules which mean each individual had their own calculation done in April 2016 and can need different number of years to reach £179.60. 

Some people with 50 years might not get £179.60 if they were contracted out for a very long period.  More info here,

https://www.gov.uk/new-state-pension/how-its-calculated

thatoldchestnut

I presumably was contracted out from 2009 onwards. Maybe I will ring the pension service and ask them.

Dazed_and_C0nfused

thatoldchestnut said:

I presumably was contracted out from 2009 onwards. Maybe I will ring the pension service and ask them.

Your forecast tells you all you need to know.

After the headline figure it should show the amount you have actually accrued to 5 April 2021.

And how many more years you need to reach £179.60.

The exception being if you have already reached £179.60 and cannot increase your State Pension any further.

thatoldchestnut

Ah right, so another 17 years of contributions (well, 16 now I suppose, this year is almost over) and I'll get there. That's fine then! Many thanks.