We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

The MSE Forum Team would like to wish you all a Merry Christmas. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!

DWP exact and full details of how a deferred pension is calculated.

13»

Comments

  • xylophone
    xylophone Posts: 45,850 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Well that is all the DWP told me. So you can see that the longer this goes on, the more concerned I have become. I can make no progress with this despite the assistance of my MP. 

    Have you read the links in my post above, in particular the first (written explanation supplied to this poster by DWP as to the exact calculations required to assess entitlement to NSP)?

    Have you written to DWP to request such an explanation?

    In terms of your state pension age, see 

    https://www.gov.uk/state-pension-age

    Regarding the calculation of your SP, see above as to how the starting amount was reached.

    You already has more than 35 qualifying years at 6/4/16 therefore your starting amount was the higher of

    Old Rules

    £119.30 (full Basic) + (Additional State Pension - Deduction for Contracting Out)

    New Rules

    £155.55 (Full NSP) - Contracting Out Pension Equivalent, in your case this was £54.47 ).


    Clearly the old rules gave your starting amount.



    If you were told in July 2018 ( two years before you reached SPA) that your SP estimate was  £188.94 a week 

    https://adviser.royallondon.com/technical-central/rates-and-factors/state-pension/new-state-pension/

    then your starting amount at 6/4/16  must have been in excess of a full NSP - that is to say that it was more than £155.65.



    See this fact sheet produced by the government as a guide for the general public  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

    At inception of NSP therefore, you had a full NSP and a "protected payment".

    At 6/4/17 your full NSP increased under the "triple lock" rule and the protected payment by CPI.


     Similarly at 6/4/18,  by which time you had a full NSP of £164. 35 and a protected payment of £24.59.


    At 6/4/19 increases were applied in a similar way and again at 6/4/20 and subsequently except that in April 2022 only the "double lock" was used for full NSP increase.

    You did not claim your SP in June 2020 so that your pension became deferred.

    The state pension increases as above still apply but you also get what may be described as the deferment premium.

    https://www.gov.uk/deferring-state-pension/what-you-get

Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.9K Banking & Borrowing
  • 253.9K Reduce Debt & Boost Income
  • 454.7K Spending & Discounts
  • 246K Work, Benefits & Business
  • 602.1K Mortgages, Homes & Bills
  • 177.8K Life & Family
  • 259.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.