State Pension Forecast - more than the full amount of £185.15

steve99

Hi,

I reach State Pension age in June 2023. I have a forecast from the DW&P of £205.19 a week. This is more than the full new State Pension of £185.15 per week. I'm sure that this forecast does not include the triple-lock from April 2023 so I would expect it to increase again with this.

I am not sure why I am getting more than the full amount of £185.15 per week - btw I'm not complaining - just interested if anyone can suggest a reason why?

TIA

Steve  

molerat

Your SP has been significantly above the new maximum since April 2016, around £173.50 at that time, and nothing you have contributed since then has increased that amount.  You were unlikely in a contracted out scheme and had a significant amount of additional pension, around £54.20 in 2016, making your old pension figure higher than the new.

TadleyBaggie

My current SP is £202/week, so not uncommon.

dunstonh

I am not sure why I am getting more than the full amount of £185.15 per week - btw I'm not complaining - just interested if anyone can suggest a reason why?

The £185.15 is the current maximum for those that have 35 years under the new method (i.e. nobody yet).   It can also be the maximum for those that have periods of contracting out or self employment.     (both of which would have originally only qualified for the basic state pension under the old method).    However, if you were contracted in and have Graduated, SERPS and/or S2P entitlement built up, you get to retain that and can go over the £185.15.

Basically, your state pension is made up of different qualification methods over different periods when things like Graduated, SERPS and S2P were in existence.   You still get your historic entitlement and these are transitioned into the new state pension at a higher amount.

    

xylophone

  On 6/4/16  two calculations were done to establish your "starting amount" for new state pension. 

Old Rules 

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

New Rules

(NI years (max 35)/35 x Full New State Pension) - (where applicable) Contracted Out Pension Equivalent.

Your "starting amount" was the higher of the two calculations.

If it was  more than a full new state pension, then you could not improve it by further NI contributions but would nevertheless have to continue to pay NI (if working and earning the requisite amount) up to your SPA.

In terms of inflation protection, that portion of your starting amount that was equivalent to a full NSP (£155.65 at that time) would increase under the terms of the "triple lock" (double lock in the current tax year) while the balance (your "protected payment") would increase by CPI.

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