New state pension

barbedhook · 14 March 2017 at 12:45PM

I am due to retire on the 10/09/2018 I have had a pension forcast with a starting amount of £148 I will have 35 years credits but have the opportunity to pay an extra 2years would this give me any extra pension ? I am a male

molerat · 14 March 2017 at 12:50PM

Yes. Your starting amount is at April 2016 so 2016/17 and 2017/18 will add the required amount. The forecast should tell you the maximum you can achieve and how many years you need to contribute to reach this. Purchasing any missing pre 2016 years will not add to your pension.

Dazed_and_confused · 14 March 2017 at 12:53PM

Retrospective years not necessarily always of benefit.

When you say retire in 2018 do you mean you are working until then, if so (and earning enough) you should get 2 additional years (2016:17 and 2017:18) which will add to your new state pension starting amount.

xylophone · 14 March 2017 at 12:58PM

2years would this give me any extra pension ? I am a male

If your SP starting amount based on contributions to 5/4/16 was £148, contributions for 16/17 and 17/18 should increase your weekly pension to full NSP.

https://www.gov.uk/new-state-pension/how-its-calculated

barbedhook · 14 March 2017 at 1:00PM

I am still working my forcast is based on me working up to retirement an is based on 35 years contributions. But I can make a payment for 2 years I didn't have a full qualifying contributions so I would have 37 years would that give me any more pension thanks

Dazed_and_confused · 14 March 2017 at 1:02PM

Have you read molerats reply?

molerat · 14 March 2017 at 1:32PM

If you only have 33 years at April 2016 then £148 starting amount means your pension is based on the old rules, the new would be £146.76 maximum. Purchasing the pre 2016 years may increase your starting amount providing you have not been contracted out and have no COPE shown. Paying the 2 post 2016 years through employment would have the same effect of taking you to the maximum £155.65 at no extra cost, you will pay the NI regardless.

A full picture of what your forecast says is needed to provide an accurate assessment.

barbedhook · 14 March 2017 at 3:30PM

My forcast says estimate based on N/I contributions to2016 £139.26 Forcast if you contribute to April 2018 £148.15 . YourCOPD amount is £24.59 I will have a total of 35 contributions but I could pay a contribution to get another 2 years ni taking me up to 37 years woul this make any difference to my starting amount I also receive a pension from a previous employer thank

molerat · 14 March 2017 at 3:56PM

So you have 33 years at April 2016. Your "new pension" calculation is then 155.65/35*33=146.75-24.59= £122.16, less than the £139.26 starting amount which is based on your old entitlement. Purchasing the 2 pre 2016 years will give you 155.65/35*35-24.59= £131.06, still less than the current starting amount so purchasing them will add no value. The maximum you will be able to achieve by contributing going forward, as per your forecast, is 139.26 +(155.65/35*2)=£148.15. Don't get hung up on the overall number of years you can get as the only important total is pre 2016 during the transition.

barbedhook · 14 March 2017 at 4:11PM

Thank you very much for all your replies I now understand shoulden't wish my life away but roll on next year I'm kn,,,,,,,,,ed. lol

New state pension

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free