State pension thoughts please

LookingForwardToRetiremet

xylophone said:

She would have had more than 35 NI qualifying years at 5/4/16.

On 6.4.16, (inception of New State Pension) two calculations were done for her to establish her "starting amount" for NSP.

Old Rules

NIQY/30 x £119.30 (Full Basic SP) + (Additional State Pension - Deduction for Contracting Out)

In her case

£119.30 + (Additional SP - Deduction for Contracting Out).

New Rules

(NIQY/35 x £155.65) - Contracted Out Pension Equivalent.

In her case

£155.65 - COPE.

Her starting amount was the higher of the two,

If (as appears to be the case), she was in a contracted out pension scheme for much (the whole?) of her working life ( the NHSPS was contracted out  between 1978 and 2016), the COPE would have been high so that her Starting Amount would have been given by the old rules calculation.

It would have been less than a full NSP but she had a number of years from 6/4/16 up to 5/4/23 in which she could make contributions /receive credits to bring her up to an amount equal to (but not exceeding) a full NSP.

What was shown on her forecast under

Estimate to 5/4/22?

The whole of her working life was as a nurse on the nhs 

I'll post shortly her estimate for 22 

Thank you 

LookingForwardToRetiremet

Estimate on 5/4/22 was 197.42

It said forecast if you contribute until 5.4.23 is 203.23 

LookingForwardToRetiremet

Found it cope estimate 102.27 a week 

Pat38493

LookingForwardToRetiremet said:

Estimate on 5/4/22 was 197.42

It said forecast if you contribute until 5.4.23 is 203.23 

Is she still working?  If she carried on working till 5/4/23, and her state pension is due in August '23, I think that she should get the full amount and maybe it's because the letter is based on last year's numbers but will change.

The tax year when you reach state pension age doesn't count, but if she reaches SPA in August 23 that would be the following tax year.

What is the date of issue on the letter that you received this week?

If she already stopped working before April this year, you would need to look into whether she worked enough time in the 2022/23 tax year to get the additional needed year.  Even if not, I think that you could pay for it but you would need to check with the DWP.

LookingForwardToRetiremet

Pat38493 said:

LookingForwardToRetiremet said:

Estimate on 5/4/22 was 197.42

It said forecast if you contribute until 5.4.23 is 203.23 

Is she still working?  If she carried on working till 5/4/23, and her state pension is due in August '23, I think that she should get the full amount and maybe it's because the letter is based on last year's numbers but will change.

The tax year when you reach state pension age doesn't count, but if she reaches SPA in August 23 that would be the following tax year.

What is the date of issue on the letter that you received this week?

If she already stopped working before April this year, you would need to look into whether she worked enough time in the 2022/23 tax year to get the additional needed year.  Even if not, I think that you could pay for it but you would need to check with the DWP.

She's still working. 
Letter dated 6/4/23 
66 in  early August this year 

Thank you for your help 

xylophone

You say that she is still working - presumably she has paid (or been credited) NI for the tax year just ended (22/23)


 If so, it looks to me as if the year ended 5/4/23 has not yet been added to her record.

What appears to have happened is that up to 5/4/22 she had accrued around £179 a week - this figure was increased by 10.1% to  bring her up to the £197.42 (the amount she would have received if she did not have a qualifying year 22/23).

She has accrued another year to 5/4/23 ( the  tax year before the one in which she reaches SPA).

This adds £5.22 to her state pension which brings her up to £203.23.  This is the most she can get.

It is just short of a full NSP (£203.85).

She can check with DWP.

LookingForwardToRetiremet

xylophone said:

You say that she is still working - presumably she has paid (or been credited) NI for the tax year just ended (22/23)


 If so, it looks to me as if the year ended 5/4/23 has not yet been added to her record.

What appears to have happened is that up to 5/4/22 she had accrued around £179 a week - this figure was increased by 10.1% to  bring her up to the £197.42 (the amount she would have received if she did not have a qualifying year 22/23).

She has accrued another year to 5/4/23 ( the  tax year before the one in which she reaches SPA).

This adds £5.22 to her state pension which brings her up to £203.23.  This is the most she can get.

It is just short of a full NSP (£203.85).

She can check with DWP.

Thank you so much , she wants me to pass on her gratitude for you taking the time to explain . 

And thanks to all others too 

Dazed_and_C0nfused

If so, it looks to me as if the year ended 5/4/23 has not yet been added to her record.

That will no doubt be correct. 

Employers have until 20 April each year to file their final pay details so I suspect NI records arising from earnings wouldn't be updated until sometime into May at the earliest.

LookingForwardToRetiremet

Dazed_and_C0nfused said:

If so, it looks to me as if the year ended 5/4/23 has not yet been added to her record.

That will no doubt be correct. 

Employers have until 20 April each year to file their final pay details so I suspect NI records arising from earnings wouldn't be updated until sometime into May at the earliest.

Excellent thank you .