State and private pensions have gone up, but I'm worse off

System

This discussion was created from comments split from: State Pension and Private Pension.

Pat13ricia

Hi, 
I have received my State Pension increase and my private pensions increase. I am now £24 worse off, every month.  I don't get the full State Pension, because of "contracting out". What is the point in working hard, making provisions for the future, to then find you are worse off???

MallyGirl

Pat13ricia said:

Hi, 
I have received my State Pension increase and my private pensions increase. I am now £24 worse off, every month.  I don't get the full State Pension, because of "contracting out". What is the point in working hard, making provisions for the future, to then find you are worse off???

it is unlikely that you are worse off unless there are benefits that you no longer qualify for. Why do you believe that you are worse off? Did you underpay tax last year which is now being collected through your tax code?

Silvertabby

Pat13ricia said:

Hi, 
I have received my State Pension increase and my private pensions increase. I am now £24 worse off, every month.  I don't get the full State Pension, because of "contracting out". What is the point in working hard, making provisions for the future, to then find you are worse off???

Is it that your private pension income has decreased due to the extra tax due from your State pension?

Add together all your pensions pre increase, then add all your pensions post increase, and compare.

If your total income really has dropped by £24, then there must be something else going on.

Marcon

Pat13ricia said:

Hi, 
I have received my State Pension increase and my private pensions increase. I am now £24 worse off, every month.  I don't get the full State Pension, because of "contracting out". What is the point in working hard, making provisions for the future, to then find you are worse off???

Any chance you've based your calculation on receiving your state pension monthly (ie 12 payments a year), when in reality it is every four weeks (so 13 payments a year, not just 12)?

dunstonh

Pat13ricia said:

Hi, 
I have received my State Pension increase and my private pensions increase. I am now £24 worse off, every month.  I don't get the full State Pension, because of "contracting out". What is the point in working hard, making provisions for the future, to then find you are worse off???

You cannot be worse off unless you have had benefits turned off, so you are almost certainly mistaken in some way.

Give us some figures and you will get the answer.

Hoenir

Pat13ricia said:

I have received my State Pension increase and my private pensions increase. I am now £24 worse off, every month.  

That would be surprising. Defies the laws of mathematics. 

ali_bear

I think that's likely to be a one and done. 

daveyjp

As my maths teacher used to write on my answers.

"Please show your full workings"

HillsideRetired

is the original poster referring to  .. annual increases in pensions have not matched annual increases in the same outgoings ?
if that's the case , i feel also feel the pain 

mybestattempt

Pat13ricia said:

Hi, 
I have received my State Pension increase and my private pensions increase. I am now £24 worse off, every month.  I don't get the full State Pension, because of "contracting out". What is the point in working hard, making provisions for the future, to then find you are worse off???

This situation may have arisen because the annual increases in state pension and possibly private pension (both being paid in arrears) were not fully included in the payments received in April, the first month of the new tax year, but the tax code operated against the private pension has changed to reflect the full annual increase in state pension. 

So, although there has been an increase in pensions paid in April because of the new tax code more tax was deducted and this has resulted in a reduction in net income in April.

However, there should be an increase in net income in May when the new rates of both pensions are paid in full.