Calculating yearly state pension?

luvchocolate

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.

I have mine paid weekly but have to ask for that. Also can be paid fortnightly which is the same as housing benefit so may help some 

molerat

Silvertabby said:

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.

Usually on your income streams it is shown as 52 new but the tax code deduction is 1+51

p00hsticks

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.

As others have said, you can get it paid weekly, fortnightly or four-weekly, although the latter is the default - I think you need to apply by phone to request the first two options. Monthly is not an option, and I can't see them changing it - it'd be a lot of work, expensive and I suspect DWP have many more urgent things to focus their efforts on.

If four weekly is going to be difficult to manage, , then you could set up a new bank account to get the pension paid into, and then simply set up a standing order to move a sum over to your main account on the same day each month.

You'd initially have to treat the four weekly amount as having to last you a month, but by the end of the year you'd end up with  an extra payment in the intermediate account, and could, if you wish use it, as a buffer to actually work out the monthly equivalent amount and start transferring that over instead. 

Qyburn

Silvertabby said:

There are more than 52 weeks in a year.  

52 and a bit, yes, but if you're paid weekly you have only 52 payday and therefore payments in most years, and 53 occasionally. You won't ever get 52.17 x the weekly amount. I guess (hope) that HMRC tax you on what you are actually paid. That's how they work for salary, they don't add on a bit for the period from 1st to 5th April.