Pension help - bit confused 18 March at 9:28AM in Pensions, annuities & retirement planning 4 replies 351 views

mysk_girl

I've been looking into my state pension

I'm 45 so had some pre 2016 employment. On 5th April this year I will have 27 years contributions paid, and the website is telling me I then have another 4 to go to get £185.15 per week. I thought it was 35 full years?

Dazed_and_C0nfused

mysk_girl said:

I've been looking into my state pension

I'm 45 so had some pre 2016 employment. On 5th April this year I will have 27 years contributions paid, and the website is telling me I then have another 4 to go to get £185.15 per week. I thought it was 35 full years?

Why do you think that?

The 35 years only apply to those starting to pay NI from 2016.

As explained on gov.uk.

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

p00hsticks

The '35 years' is irrelevant for those with working lives prior to the introduction of the new State Pension - there are transitional rules in place for them which you fall under,.

You presumably were 'contracted in' before 2016 and so built up some SERPS / S2P whcih wil lhave increased your 2016 'starting amount'. 

xylophone

Your "starting (foundation) amount" for NSP was calculated at 6/4/16.

You had 20 qualifying years at that point.

Your starting amount was the higher of

Old Rules

20 /30 x £119.30 (Full Basic in 2016/17) + (Additional State Pension - (if applicable) Deduction for Contracting Out).

New Rules

{20/35 x £155.65 (Full NSP in 2016/17)} - (if applicable) Contracted Out Pension Equivalent.

You will have a COPE only if you  had ever  been a member of a pension scheme that was "contracted out"of Additional State Pension (SERPS/S2P).


You have increased your "starting amount" by seven more qualifying years.

Four more qualifying years will bring you to a full NSP.

If working and earning the relevant amount, you will continue to pay NI up to State Pension Age although it will not add to your entitlement.

At SPA you will receive whatever the full NSP (not so N by that stage!) is at that time.

Currently it is £185.15 - it will be £203.85 in 2023/4.

Below was produced in the run up to the introduction of the new system.

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

mysk_girl

Thank you - I was confused about how it was all done. I was never contracted out, that I know of. 

Still got to work another 20 years before I can afford to retire so it's slightly irrelevant but good to know.