New State Pension Guide
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See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf
( although figure given for BSP is that for 2015-16 - the figure used for your calculation will be £119.30 and the figure for NSP should be £155.65).0 -
I have been contracted out for 15 years, and my sp is £153/week, not the £155 quoted, but close enough for me, so I think more people than you seem to indicate will be quite close to the maximum amount.
Virtually no one will be getting £155 per week for many years, some will get more and some will get less primarily dependent on how many years they above paid in and whether they have been contracted on or out.
Cheers fj0 -
bigfreddiel wrote: »I have been contracted out for 15 years, and my sp is £153/week, not the £155 quoted, but close enough for me, so I think more people than you seem to indicate will be quite close to the maximum amount.
Cheers fj
Yes, but you're still working from the old rules.
You were still contracted in for much of your working life which is where your figure comes from.
The £155 isn't a maximum amount by any means, I've seen figures quoted for people with long work histories who haven't been contracted out of around £250 if not more, once SERPS, s2p and their predecessors are included.
Your figure is likely to be £119 plus £34 on SERPS, s2p etc0 -
I believe the maximum "old" SP for 2016 is £283.660
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I am still confused , sorry . I simply can not see it only six years of 32 qualifying years contracted out and my new state pension is still equal to the old one £119.30 !!!!!!!!? Help please0
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Yes, but you're still working from the old rules.
You were still contracted in for much of your working life which is where your figure comes from.
The £155 isn't a maximum amount by any means, I've seen figures quoted for people with long work histories who haven't been contracted out of around £250 if not more, once SERPS, s2p and their predecessors are included.
Your figure is likely to be £119 plus £34 on SERPS, s2p etc
You've missed the point £155 is the max nsp.
Of course if you have been contracted in all your life then your oSP will be bigger than the max nsp - everyone knows that!
Right now the sp calc gives you the bigger of the two oSP or nsp
And yes my figure obviously includes SERPS/s2p otherwise I under nsp rules I would only get £40/week or thereabouts.
So basically no one will be retiring under the nsp rules for many years to come, I guess the cutover will be in about17 years time. That's when more people will retire under nsp rules than the oSP rules, probably sooner.
Hope that's clear. Cheers fj0 -
I am still confused , sorry . I simply can not see it only six years of 32 qualifying years contracted out and my new state pension is still equal to the old one £119.30 !!!!!!!!? Help please
Under the old rules, you have the full 30 years needed for the basic pension rate of £119.30. As you appear to have been contracted in for 26 years, I'm surpised that you've not earned any additonal pension (SERPS/S2P) t o add to that, but I'm no expert in that area.....
Under the new rules you haven't got the full 35 years required for the maximum £155.65. If you hadn't been contracted out at all, you would get 32/35 x £155.65 =£142.30. But as you were contracted out for a period of time and so paid less NI, they are deducting £36 from that figure, taking it down to £106.30. (As greenglide has said, the calculation to get to £36 takes into account not just the six years but also hpow much you were earning at the time).
So under the transitional rules, your 'starting amount' as at 6/4/16 is the higher of the amounts calculated under old rules and new - in your case the figure under the old rules (£119.30) is higher than under the new (£106.30).0 -
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bigfreddiel wrote: »You've missed the point £155 is the max nsp.
Of course if you have been contracted in all your life then your oSP will be bigger than the max nsp - everyone knows that!
Right now the sp calc gives you the bigger of the two oSP or nsp
And yes my figure obviously includes SERPS/s2p otherwise I under nsp rules I would only get £40/week or thereabouts.
So basically no one will be retiring under the nsp rules for many years to come, I guess the cutover will be in about17 years time. That's when more people will retire under nsp rules than the oSP rules, probably sooner.
Hope that's clear. Cheers fj
Yes, well it now appears that you understand, as your post suggested that you were near the maximum which wasn't the case. You seem to think originally that you were getting the new figure, when in actual fact you are getting it under the old rules because it's the higher figure.
When people will retire with a pension based on the old or new rules depends on their circumstances. If someone has been contracted out all of their life then they will benefit from the ability to accrue more pension under the new rules, meaning they get more than they would have done within the next few years.0
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