Calculating yearly state pension?

Steve_666_

*not quite exact if one takes into account that the year xx00 may or may not be a leap year.

If they can guarantee me making 2100, then they can cheat me out of a few quid

Qyburn

Can you actually get the State Pension paid weekly? Every I've seen say "normally" it's paid four weekly, which would mean mostly 13 but sometime 14 payments in a tax year.

I'm not drawing it yet, but four weekly is going to be a pain with every regular expense from Council Tax, credit card bill, utilities all being monthly.

Silvertabby

Qyburn said:

Can you actually get the State Pension paid weekly? Every I've seen say "normally" it's paid four weekly, which would mean mostly 13 but sometime 14 payments in a tax year.

I'm not drawing it yet, but four weekly is going to be a pain with every regular expense from Council Tax, credit card bill, utilities all being monthly.

4 weekly is the default, but you can ask for it to be paid weekly if you think that will make it easier to budget.

We've both stayed with the 4 week payment schedule, but would have gone for calendar monthly if that had been an option.  Sadly, seems that as the State pension is calculated as a 'per week' benefit, that will never happen.

Qyburn

Cheers, maybe the rules will change by then anyway. 

Dazed_and_C0nfused

Qyburn said:

Can you actually get the State Pension paid weekly? Every I've seen say "normally" it's paid four weekly, which would mean mostly 13 but sometime 14 payments in a tax year.

I'm not drawing it yet, but four weekly is going to be a pain with every regular expense from Council Tax, credit card bill, utilities all being monthly.

Yes you can, it's just not made an obvious option.

https://www.radiotimesmoney.com/retirement/pension-advice/state-pensions-can-be-paid-every-seven-days-says-paul-lewis/

Silvertabby

As for the calculation of the State pension for tax purposes, I don't think HMRC work it out to the exact penny until after the event.

I've just received my tax code letter for 2023/24, and my State pension is showing as £10,600.  Near enough, but a 'round figure'?

Dazed_and_C0nfused

Silvertabby said:

As for the calculation of the State pension for tax purposes, I don't think HMRC work it out to the exact penny until after the event.

I've just received my tax code letter for 2023/24, and my State pension is showing as £10,600.  Near enough, but a 'round figure'?

I don't think they use pence in tax codes, just whole pounds.

But that looks like £19 too much if you get the standard new State Pension?

Silvertabby

Dazed_and_C0nfused said:

Silvertabby said:

As for the calculation of the State pension for tax purposes, I don't think HMRC work it out to the exact penny until after the event.

I've just received my tax code letter for 2023/24, and my State pension is showing as £10,600.  Near enough, but a 'round figure'?

I don't think they use pence in tax codes, just whole pounds.

But that looks like £19 too much if you get the standard new State Pension?

Yes, full nsp.  Pension after the April increase will be more than £10,600, but if HMRC have included one week at the old (current) rate then I don't think it will be far off.  

Dazed_and_C0nfused

Full is £10600.20 though (£203.85 x 52).

1 + 51 would be £19 less.

Is the tax code deduction £10,600 or £10,581?

Silvertabby

Dazed_and_C0nfused said:

Full is £10600.20 though (£203.85 x 52).

1 + 51 would be £19 less.

Is the tax code deduction £10,600 or £10,581?

There are more than 52 weeks in a year.  We used to use X 52.17 in my LGPS days, but knew that wouldn't give us an 'exact to the penny' figure.  Not enough of a difference to worry about, but close enough.

When I started to draw my State pension I rang HMRC to ask them to adjust my tax coding sooner rather than later, as I would be racking up arrears until it was done.  The lady I spoke to did say that they estimate the State pension figure, then sort it out at the end of the financial year.