State pension offset

Johnboy017

Hi, I have a question about BTPS State Pension Offset. I have 41 qualifying years for state pension and my gov.uk estimates I will now get the full amount (I did 5 years self employed with voluntary nics payments). Will my state pension still reduce due to state pension offset rules ?

molerat

Your state pension will be what is shown on your forecast (providing you are reading the forecast correctly).  Your BTPS may have an offset reduction when you reach state pension age.  

BTPS State Pension Offset factsheet (March 2021).pdf

BTPS Pension guide (with AVC) - V0.1.pdf

tigerspill

And it is £1,603.49 for BTPS this Tax Year.  It increases each year.

SouthCoastBoy

My wife has an offset with her pension, however the offset starts at 65, the old state pension age, it has never been updated when new ages came into effect, so her income will dip at 65 for two years

Johnboy017

Just received my “state pension offset” figure from the BTPS. Currently it stands at £1310 rising every year (by avg weekly earnings) till my state pension age ! A very rough guess I think it will be approximately £1600 which will be deducted from my BT pension yearly. I never knew this until recently so a bit of a nasty shock ! Oh well, it’s only money ! 

Marcon

Johnboy017 said:

Just received my “state pension offset” figure from the BTPS. Currently it stands at £1310 rising every year (by avg weekly earnings) till my state pension age ! A very rough guess I think it will be approximately £1600 which will be deducted from my BT pension yearly. I never knew this until recently so a bit of a nasty shock ! Oh well, it’s only money ! 

It's the old story - you need to read the scheme communications, which will have included this info...but all too easy to not do so!

See https://www.btps.co.uk/MediaArchive/SchemeSite/BTPS%20State%20Pension%20Offset%20factsheet%20(March%202021).pdf

MSE_ForumTeam5

Threads merged

Shoeaholic58

Johnboy017 - responding to an old post here. I am due to receive the state pension this year and I'm aware the BTPS offset. My closing statement show a figure similar to yours, what equation did you use to arrive at £1600.00 reduction P.A. Also have you now reached SRA so therefore know exactly what the offset figure is and is it close to  offset provided on closing statement and your guessimate. Thanks

Johnboy017

Hi, I have not reached state pension age yet, I have another 7 years to go. On average, my offset figure is going up approximately £80 per year. It’s a pure guesstimate but I request my offset figure each year from the BTPS. I believe the BTPS should provide this figure each year to members automatically. Cheers John

Marcon

Johnboy017 said:

Hi, I have not reached state pension age yet, I have another 7 years to go. On average, my offset figure is going up approximately £80 per year. It’s a pure guesstimate but I request my offset figure each year from the BTPS. I believe the BTPS should provide this figure each year to members automatically. Cheers John

It's a total waste of money sending people information they won't read - and most won't. As you say, you can ask for it annually if you want the figure.

tigerspill

Marcon said:

Johnboy017 said:

Hi, I have not reached state pension age yet, I have another 7 years to go. On average, my offset figure is going up approximately £80 per year. It’s a pure guesstimate but I request my offset figure each year from the BTPS. I believe the BTPS should provide this figure each year to members automatically. Cheers John

It's a total waste of money sending people information they won't read - and most won't. As you say, you can ask for it annually if you want the figure.

I also have to ask BTPS for this each year. 
It is a basic part of the BTPS and should be automatically available IMO.  Each year I also request that BTPS add this to their web site which would be a trivial exercise.  Nothing as yet after several years of asking.