Pension Award Letter

Rip_Van

Hi all, I reach state pension age in January next year and have received my award letter dated 3rd October 2022. That's fine but the amount is more than my spouse is currently getting, which would be fine too but I don't want the state coming back to me because they've overpaid. 
Anyone got experience of this or similar?

Dazed_and_C0nfused

Rip_Van said:

Hi all, I reach state pension age in January next year and have received my award letter dated 3rd October 2022. That's fine but the amount is more than my spouse is currently getting, which would be fine too but I don't want the state coming back to me because they've overpaid. 
Anyone got experience of this or similar?

What relevance do you think your spouse's State Pension has to your award 🤔

Do you understand that you are under the transitional rules for the new State Pension?

Have you checked your forecast to make sure it's what you would expect?

xylophone

That's fine but the amount is more than my spouse is currently getting, 

When a person reached SPA before 6/4/16, an individual calculation was done when assessing the amount of state pension to which he/she was entitled. 

The entitlement to Basic State Pension, and Additional State Pension ( State Earnings Related  Pension, Second State Pension and Graduated State Pension) would all be factored into the calculation.

If the person had ever been contracted out of SERPS, a Contracted Out Deduction would also figure.

John Smith's SP could differ markedly from that of his wife Mary Smith or indeed from that of his neighbour Tom Brown who just happened to reach SPA on the same day as John did.

For all those who were under State Pension Age at 6/4/16, an individual calculation was done to establish the "starting amount" for new state pension.

Old Rules

NI years (max 30)/30 x Full Basic + (Additional State Pension - (if applicable) Deduction for Contracting Out.

New Rules

NI years (max 35)/35 x Full NSP - (if applicable) Contracted Out Pension Equivalent.

The starting amount was the higher of the two and varied according to the contribution records of each individual.

 He/she would have been in one of three positions.

Starting amount equal to full NSP.

Starting amount more than full NSP.

Starting amount less than full NSP.

If the individual's  forecast starting amount was equal to or more than a full NSP, he could not improve it any more, although if he were still under SPA and earning the relevant amount, he would still need to pay NI.

If it was less than a full NSP, there was the possibility of improving it up to (but not more than) a full NSP by further contributions or credits.

See this guide produced by the government shortly before the introduction of NSP.

 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

molerat

More importantly have you checked if either of you can improve on those pension amounts ?

Your pension amount is down to very personal circumstances and it is not always obvious to the untrained eye how some get more than others.

MrsM has had very little paid employment since we got married in the 70s.  She has 35 years of contributions and receives the full £185.15,

I on the other hand was in a fairly well paid job for at least half my working life, have 42 years of contributions but do not receive the full amount.

That is why it is important to get a pension forecast and work out how it is calculated.  It is often possible to increase the amount received - in some cases even if it quotes you as getting the full new pension - even after retirement.

Flugelhorn

we will get differing amounts too - just one of those things, depends on ages and work history etc DH and I were probably due to get the same (ish) when it was calculated on 2016, then I worked for a few more years so will get a bit more 

Marcon

Rip_Van said:

Hi all, I reach state pension age in January next year and have received my award letter dated 3rd October 2022. That's fine but the amount is more than my spouse is currently getting, which would be fine too but I don't want the state coming back to me because they've overpaid. 
Anyone got experience of this or similar?

Probably every couple in the country! Very rare for those reaching SPA now, and for some years to come, to have an identical state pension entitlement. 

xylophone

Very rare for those reaching SPA now, and for some years to come, to have an identical state pension entitlement. 

But this was also the case under the old state pension.

People with full qualifying years might have the same Basic State Pension but entitlement to Grad/SERPS/S2P could be very different.

Married couples could find that the wife was entitled to only 2/3 basic while the husband was entitled to full basic and a high additional pension.

Some people might not qualify for full Basic.

The calculation was specific to each individual and amounts varied widely.

Rip_Van

Dazed_and_C0nfused said:

Rip_Van said:

Hi all, I reach state pension age in January next year and have received my award letter dated 3rd October 2022. That's fine but the amount is more than my spouse is currently getting, which would be fine too but I don't want the state coming back to me because they've overpaid. 
Anyone got experience of this or similar?

What relevance do you think your spouse's State Pension has to your award 🤔

Do you understand that you are under the transitional rules for the new State Pension?

Have you checked your forecast to make sure it's what you would expect?

"What relevance do you think your spouse's State Pension has to your award 🤔"

I thought we would be the same. She gets £185.15 per week (the max as I understand it). There's four months between us in age.

"Do you understand that you are under the transitional rules for the new State Pension?"

No!

"Have you checked your forecast to make sure it's what you would expect?"

Did check my forecast, many times, it was £185.15.

xylophone

Did check my forecast, many times, it was £185.15.

Are you now saying that your award letter shows that you will receive more than

£185.15?

What exactly did your last state pension forecast show?

molerat

So you will be getting more than £185.15 ?

If your forecasts all along have been showing £185.15, or the equivalent "full pension" each year, then you should not really be receiving any more as in normal circumstances any figure above the maximum should have been in place since April 2016.

Rip_Van

xylophone said:

Did check my forecast, many times, it was £185.15.

Are you now saying that your award letter shows that you will receive more than

£185.15?

What exactly did your last state pension forecast show?

Yes, my award letter says £818.28 every four weeks.(£204.57 per week).
From memory(?) the forecast was the (standard?) £185.15.