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  • FIRST POST
    • Wild_Rover
    • By Wild_Rover 12th Aug 18, 10:38 AM
    • 5,564Posts
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    Wild_Rover
    New state pension - calculator
    • #1
    • 12th Aug 18, 10:38 AM
    New state pension - calculator 12th Aug 18 at 10:38 AM
    Hi folks. There appears to be a lot of confusion amongst some of my friends about the new state pension, largely due to there not being much on the gov.uk website about the effect of being contracted out for all or some of the time NI contributions were made, or of having fewer than 35 years NI contributions because of early retirement.

    Anyone know of an online calculator or suchlike, where someone could just input their D.O.B and the number of years of contracted in/out NI contributions and get a reasonably accurate figure? I've searched, but nothing obvious came up.

    Cheers,

    WR
    Those who can make you believe absurdities, can make you commit atrocities. Voltaire
    Why should I allow that same God to tell me how to raise my kids, who had to drown His own? RG. Ingersol
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Page 1
    • Dazed and confused
    • By Dazed and confused 12th Aug 18, 10:50 AM
    • 2,991 Posts
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    Dazed and confused
    • #2
    • 12th Aug 18, 10:50 AM
    • #2
    • 12th Aug 18, 10:50 AM
    Wouldn't the simplest thing be to just log onto your Personal Tax Account and check your actual entitlement?
    • xylophone
    • By xylophone 12th Aug 18, 10:52 AM
    • 26,799 Posts
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    xylophone
    • #3
    • 12th Aug 18, 10:52 AM
    • #3
    • 12th Aug 18, 10:52 AM
    Obtain a new state pension statement.

    https://www.gov.uk/check-state-pension
    • Linton
    • By Linton 12th Aug 18, 11:11 AM
    • 9,810 Posts
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    Linton
    • #4
    • 12th Aug 18, 11:11 AM
    • #4
    • 12th Aug 18, 11:11 AM
    I do not believe there is any such calculator. The calculation is complex depending on many more factors than simply the number of years you were contracted out - eg which years you were contracted out and your income in each year. However, unless you want to check DWPs calculations it doesnt matter in that all this was worked through in April 2016 and the SP rebased on those calculations.

    If you just want to know how many further NI years you need to get the full pension divide the amount of weekly pension you have yet to earn by the full weekly pension and multiply by 35. If you were thinking about buying pre 2016 years you would need to talk to the Future Pensions Centre anyway.
    • Officer Dibble
    • By Officer Dibble 12th Aug 18, 12:31 PM
    • 98 Posts
    • 146 Thanks
    Officer Dibble
    • #5
    • 12th Aug 18, 12:31 PM
    • #5
    • 12th Aug 18, 12:31 PM
    The problem is that it's clear that the government have got their sums wrong in a high number of cases, but there's no way of checking whether they've got it right or not.


    I was contracted out for a number of years (the latest version of the online forecast says as much) but it still says I'll be getting the full new pension. Very nice if so, but it would be nice to know if I'm actually entitled to it, or if they'll crunch the numbers again in a few years and decide that I'm not.
    • Linton
    • By Linton 12th Aug 18, 12:43 PM
    • 9,810 Posts
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    Linton
    • #6
    • 12th Aug 18, 12:43 PM
    • #6
    • 12th Aug 18, 12:43 PM
    I was contracted out for a number of years (the latest version of the online forecast says as much) but it still says I'll be getting the full new pension. Very nice if so, but it would be nice to know if I'm actually entitled to it, or if they'll crunch the numbers again in a few years and decide that I'm not.
    Originally posted by Officer Dibble

    That is perfectly possible - for example if you were also contracted-in for sufficient years you could have earned sufficient SERPS/S2P to balance the contracted-out deduction. Or if you are relatively young and have sufficient time to make up the contracted out deduction by paying more than 35 years NI.
    • p00hsticks
    • By p00hsticks 12th Aug 18, 12:51 PM
    • 6,414 Posts
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    p00hsticks
    • #7
    • 12th Aug 18, 12:51 PM
    • #7
    • 12th Aug 18, 12:51 PM
    I was contracted out for a number of years (the latest version of the online forecast says as much) but it still says I'll be getting the full new pension. Very nice if so, but it would be nice to know if I'm actually entitled to it, or if they'll crunch the numbers again in a few years and decide that I'm not.
    Originally posted by Officer Dibble

    Did you have at least 30 years NI years creditted up to 6/4/2016 ?
    If so then even if you've been contracted out your whole life your transitional 'starting amount' as at that date would be at least the old basic pension value (around 119).

    Every NI year earned/creditted/bought since then simply adds 1/35th of the new State Pension amount until you reach either State Retirement Age or the maximum amount, whichever comes first.
    • Officer Dibble
    • By Officer Dibble 12th Aug 18, 12:59 PM
    • 98 Posts
    • 146 Thanks
    Officer Dibble
    • #8
    • 12th Aug 18, 12:59 PM
    • #8
    • 12th Aug 18, 12:59 PM
    Thanks Linton - it is indeed perfectly possible, but what I don't know is whether it's actually the case or not! They've come up with an answer without showing their workings (or giving any way of checking their workings), whilst being able to change that answer at some point in the future and being able to take back anything that's already been paid to me under their original calculations. A year by year calculator would be welcomed by me as well as the original poster.
    • Officer Dibble
    • By Officer Dibble 12th Aug 18, 1:05 PM
    • 98 Posts
    • 146 Thanks
    Officer Dibble
    • #9
    • 12th Aug 18, 1:05 PM
    • #9
    • 12th Aug 18, 1:05 PM
    p00sticks - yes, 31 years by 6/4/16. They're suggesting that I need 36 years of contributions rather than 35 to get the full new amount, so perhaps that extra year plus the opted in years are enough to outweigh the opted out period. Impossible to check though.
    • xylophone
    • By xylophone 12th Aug 18, 1:11 PM
    • 26,799 Posts
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    xylophone
    (NI years/30 X 119.30) + (Additional State Pension - Deduction for contracting out).

    (NI years/35 x 155.65) - Deduction for contracting out (COPE).

    Calculation as above at 6.4.16 - your starting amount was the higher of the two.

    The calculation will give each individual his own calculation but each individual has a stating amount equal to/less than/more than the new state pension (155.65).

    If equal to NSP then no more increases (except index linking).

    If less than NSP, there could be the possibility of increase up to NSP., for example by contributions going forward from 2016/voluntary contributions etc see

    https://www.royallondon.com/global/documents/goodwithyourmoney/topping-up-your-state-pension-guide.pdf

    If more than then there will be no increases (except index linking - this is on the basis (currently) of triple link on amount equal to NSP/CPI on balance.

    It would be perfectly possible to have been contracted out for a period and yet have enough ASP after the COD to give an amount equal to the NSP.
    • xylophone
    • By xylophone 12th Aug 18, 1:23 PM
    • 26,799 Posts
    • 15,972 Thanks
    xylophone
    Impossible to check though.
    I seem to remember that SnowMan asked for and obtained his calculation.

    Post 127.

    https://forums.moneysavingexpert.com/showthread.php?p=70380767
    • Officer Dibble
    • By Officer Dibble 12th Aug 18, 1:53 PM
    • 98 Posts
    • 146 Thanks
    Officer Dibble
    Thanks xylophone. Well my COPE is a gnat's over 60 so my starting amount must have been based on the old rules, with the ASP much higher than the contracting out deductions I suppose (though it seems unlikely). I don't think there's much incentive to contact them for a calculation, as the only way is down, as it were.
    • minty777
    • By minty777 12th Aug 18, 7:46 PM
    • 184 Posts
    • 146 Thanks
    minty777
    https://forums.moneysavingexpert.com/showpost.php?p=69747103&postcount=127
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