Pension forecast - very confused

NoMore

If you use 365.25 days in a year it works (365.25/7  * 203.85 = 10636.60).

The .25 is because of a leap year every 4 yeas.

swindiff

Ah, makes sense now.  Cheers 

Linton

swindiff said:

What I don't understand is how £203.85 a week adds up to £10,636.60 a year.  I noticed that on my forecast the other day.  £203.85 x 52 = £10,600.20, so where is the extra £36.40 coming from?

203.85/7 X 365.25

Audaxer

NoMore said:

If you use 365.25 days in a year it works (365.25/7  * 203.85 = 10636.60).

The .25 is because of a leap year every 4 yeas.

Thanks, that makes sense, but if you are getting £203.85 gross per week, I'm now wondering when you would actually get paid the extra £36.40 each year? 

NoMore

Its just maths, a year is not an exact multiple of 7 days, so the last (and/or first)  payment of the year, some of it will be for the current year and some of it will be for the next (previous if first) year. You still get 203.85 every week, just that when wanting to consider how much that is a year you have to factor in the extra days required due to a year not being a exact number of weeks and also a leap year occurs every 4 years.

QrizB

Audaxer said:

NoMore said:

If you use 365.25 days in a year it works (365.25/7  * 203.85 = 10636.60).

The .25 is because of a leap year every 4 yeas.

Thanks, that makes sense, but if you are getting £203.85 gross per week, I'm now wondering when you would actually get paid the extra £36.40 each year? 

One year in six has 53 weekly payments.
(Five years in every twenty eight, if you insist on accuracy.)

Qyburn

52 weeks is 364 days, not quite a whole year. Although that doesn't quite tally either. Next year will be 52 weeks and two days.

badmemory

Also state pensions are paid 4 weekly not monthly so they really shouldn't quote annual because it certainly isn't what you are taxed on.

xylophone

Also state pensions are paid 4 weekly 

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs19_state_pension_fcs.pdf

When you apply for your State Pension, you are given information about the different types of bank or building society accounts you can use. Your amount is usually paid four-weekly in arrears, although you can ask to be paid weekly or fortnightly.

Qyburn

badmemory said:

Also state pensions are paid 4 weekly not monthly so they really shouldn't quote annual because it certainly isn't what you are taxed on.

I believe the entitlement is weekly, whether paid every week, fortnight or four weeks. If so then each year will have either 52 or 53 weeks due. Same as weekly payroll.