State pension projection

bigbulldog

Can anyone explain why my state pension seems higher than average as it’s only got 12 months to go .?

You can get your State Pension on 14 May 2024

Your forecast is £225.82 a week, £981.91 a month, £11,782.97 a year

Your forecast

• is not a guarantee and is based on the current law
• is based on your National Insurance record up to 5 April 2023
• does not include any increase due to inflation

£225.82 is the most you can get

You cannot improve your forecast any more.

My Cope forecast is…….

Contracted Out Pension Equivalent (COPE)

Your COPE estimate is £43.98 a week

molerat

Your pension has not increased, apart from the annual inflationary increases, since the introduction of the new pension in 2016 as your pre 2016 "old" pension amount was already over the "new" pension maximum.

(Making a few assumptions about years held) At April 2016 your old pension amount was £173.43 - £119.30 basic plus £54.30 S2P which already had your contracted out service deducted - v the new pension amount of £155.65 less £43.98 COPE so £111.67.

xylophone

At inception of the NSP (6/4/2016), your "starting amount" was  calculated as  above.

If it was £173.43, it was  £17.78 higher than the full NSP.

The £17.78 was your "protected payment".

Even if you had continued to pay NI, it would not have improved your pension.

Your starting amount has been index linked each year under the triple/double lock" (as to the full NSP) or CPI (as to the PP).

CPI inflation in September 2022 was 10.1%.

10.1% was higher than the increase on average earnings and higher than 2.5%.

Therefore for the tax year 23/4, your 22/23 NSP element  increased by 10.1%.

The PP element also increased by 10.1%. 

bigbulldog

Thanks molerat & xylophone.