State Pension - amount

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81888694#Comment_81888694

Unexpected change can come close to some fairly significant dates. Back in 2014/2015 I was expecting to qualify for Basic Pension with 30 years of NICs with a couple more years of voluntary contributions. I was told that with 35 years I could qualify for the New State Pension which would be higher. The finish line was moved, but the prize was increased.

Aretnap

https://forums.moneysavingexpert.com/discussion/comment/81889219#Comment_81889219

True, though even in that scenario - the most radical change in the way state pension is calculated in decades - the amount that people had already accrued under the old system was protected. All that changed was the maximum further amount that you could accrue, and the rate at which you could acctue it.

So for anyone with only a handful of years to go to retirement, the difference between what they were expecting and what they received was very small. For those with many years to go of course it was often significant.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81889228#Comment_81889228

Yes, and the changes resulting in the New State Pension were debated for many years so it should not have been a big surprise for anyone who was modestly informed. I live overseas so I wasn't following the discussions closely.

hotlava

Pretty sure I didn't contract out

molerat

One of the technical losers under the new rules as your pension has not increased, apart from the annual inflationary uplifts, since April 2016. If the old scheme had continued you could have increased that additional pension amount. With that amount of pension it is unlikely, but not impossible for a small amount of time - your forecast will state it, you were contracted out and had, at April 2016, £119.30 basic and £71.44 additional pension which is now £230.25 new pension plus £47.06 protected payment. The new pension amount increases annually with the triple lock but the protected payment only increases with CPI. On a positive note this is one of the few scenarios where a spouse can inherit a new state pension, they can inherit half the protected payment.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81889228#Comment_81889228

I jumped from being only eligible for Basic State Pension to being eligible for the New State Pension and back around 2016 that was going from 120 quid a week to around 160.