Discussion:
State Pension forecast - a bit puzzled?
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m***@gmail.com
2017-02-28 19:13:33 UTC
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I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.

My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.

In big, bold print it tells me that £155.65 is the most I can get.

Ok:

(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?

Something stinks.
burfordTjustice
2017-02-28 19:25:52 UTC
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On Tue, 28 Feb 2017 11:13:33 -0800 (PST)
Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on
contributions to April 2016, that I will be entitled to £137 a week
when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030
seeing as they don't increase my pension? (2) I'm currently paying
£3,800 a year in NI.....so I pay in another £41k until I retire to
get an additional £900 a year on my pension? So I need to live to
about 110 to get full value out of my contributions?
Something stinks.
Dole whores need that extra money not you...move along
not to mention the administrators.
Yellow
2017-02-28 19:55:47 UTC
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Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?
Something stinks.
The new pension system requires you to have 35 years of NI contributions
or credits (from when you were unemployment or looking after kids for
example) but the actual amount you have paid is immaterial to the amount
of pension you will receive.

They just count the years.

If you think you are paying too much for your sensibilities, then simply
take a lower paid job or stop working.
AndyW
2017-03-01 07:21:38 UTC
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Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?
Something stinks.
I take it you have looked into State Secondary Pensions/SERPS which is a
top up to the basic state pension unless you have taken the
contributions and had them paid into a private pension?

Andy
Yellow
2017-03-02 00:11:25 UTC
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In article <8EutA.597135$***@fx26.am4>, ***@nojunqmail.com
says...
Post by AndyW
Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?
Something stinks.
I take it you have looked into State Secondary Pensions/SERPS which is a
top up to the basic state pension unless you have taken the
contributions and had them paid into a private pension?
Andy
Serps is no more. A least that is my understanding.
AndyW
2017-03-02 07:15:02 UTC
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Post by Yellow
says...
Post by AndyW
Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?
Something stinks.
I take it you have looked into State Secondary Pensions/SERPS which is a
top up to the basic state pension unless you have taken the
contributions and had them paid into a private pension?
Andy
Serps is no more. A least that is my understanding.
I know, I used the term because some people still refer to it as SERPS
since the successor terms became a bit of a confusing mess with SSP, AP,
APP.
The SERPS idea carried on for a bit until 2006 but the 'Earning Related'
bit ceased. I contracted it out to my company pension because of all the
fiddling.

Andy
Yellow
2017-03-02 10:30:34 UTC
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Post by AndyW
Post by Yellow
says...
Post by AndyW
Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?
Something stinks.
I take it you have looked into State Secondary Pensions/SERPS which is a
top up to the basic state pension unless you have taken the
contributions and had them paid into a private pension?
Andy
Serps is no more. A least that is my understanding.
I know, I used the term because some people still refer to it as SERPS
since the successor terms became a bit of a confusing mess with SSP, AP,
APP.
The SERPS idea carried on for a bit until 2006 but the 'Earning Related'
bit ceased. I contracted it out to my company pension because of all the
fiddling.
What I meant was there is no second pension any more. Now, you can now
only grow your state pension by paying up to the maximum number of years
of NI.

Brian Reay
2017-03-01 08:38:42 UTC
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Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?
Something stinks.
Yes it does. I've already retired early and have checked my state
pension contributions. I've comfortably exceeded the required number of
years but don't get any extra when I get the new pension.

Had I under contributed by the same number of years, I would of course
face a reduction.

Plus, the pension will be taxed.

The best bit, those who don't work and scronge benefits until they
'retire' will have their overall income made up.
--
Suspect someone is claiming a benefit under false pretences? Incapacity
Benefit or Personal Independence Payment when they don't need it? They
are depriving those in real need!

https://www.gov.uk/report-benefit-fraud
Norman Wells
2017-03-01 09:20:01 UTC
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Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions
to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a
week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they
don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until
I retire to get an additional £900 a year on my pension? So I need to live to
about 110 to get full value out of my contributions?
Something stinks.
Yes it does. I've already retired early and have checked my state pension
contributions. I've comfortably exceeded the required number of years but don't
get any extra when I get the new pension.
The 'required' number of years to earn a full State pension when you started
contributing was 44, which I doubt very much if you have exceeded. It was supposed
to cover the whole of a working life from 16 to 60.

That was reduced 25 or so years ago to 30 years which is what I imagine you say you
have exceeded. The quid pro quo for that was that your contributions if you went
over 30 years would not earn you any more.

That has now been increased to 35 years for the new State pension, but that pension
is significantly higher than the old one to compensate.

If you started out thinking you'd have to contribute for 44 years but retired early
with fewer years, you should be grateful that you're now eligible to receive the
full State pension, not be annoyed about it. Many others had no choice.
Had I under contributed by the same number of years, I would of course face a
reduction.
Plus, the pension will be taxed.
Only if your total income is over the tax free allowance which in 17/18 will be
£11,500. Your State pension will be well under that, so you could say it is not
taxed at all.

Besides, all of your contributions to your pension(s) would have been made tax free.
MM
2017-03-01 10:24:05 UTC
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Post by Brian Reay
Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?
Something stinks.
Yes it does. I've already retired early and have checked my state
pension contributions. I've comfortably exceeded the required number of
years but don't get any extra when I get the new pension.
Had I under contributed by the same number of years, I would of course
face a reduction.
Plus, the pension will be taxed.
Surely you meant to say that one's *income* will be taxed? The state
pension is paid gross. I don't pay any income tax as my income is less
than the personal allowance.

MM
Handsome Jack
2017-03-01 10:57:11 UTC
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Post by MM
Post by Brian Reay
Plus, the pension will be taxed.
Surely you meant to say that one's *income* will be taxed? The state
pension is paid gross. I don't pay any income tax as my income is less
than the personal allowance.
The state pension counts towards one's taxable income. It is paid gross
because it's less than the annual personal allowance.
--
Jack
JNugent
2017-03-01 11:44:37 UTC
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Post by Handsome Jack
Post by MM
Post by Brian Reay
Plus, the pension will be taxed.
Surely you meant to say that one's *income* will be taxed? The state
pension is paid gross. I don't pay any income tax as my income is less
than the personal allowance.
The state pension counts towards one's taxable income. It is paid gross
because it's less than the annual personal allowance.
It is paid gross because the law requires that it is paid gross. Its
relationship to the income tax personal allowance is not the reason.

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Ophelia
2017-03-01 17:16:12 UTC
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Post by Handsome Jack
Post by MM
Post by Brian Reay
Plus, the pension will be taxed.
Surely you meant to say that one's *income* will be taxed? The state
pension is paid gross. I don't pay any income tax as my income is less
than the personal allowance.
The state pension counts towards one's taxable income. It is paid gross
because it's less than the annual personal allowance.
It is paid gross because the law requires that it is paid gross. Its
relationship to the income tax personal allowance is not the reason.

====

Quite right, the state pension is not itself taxed, however, the amount of
the state pension you receive is deducted from your annual personal
allowance. When you reach pensionable age you will receive a letter from
HMRC telling you of your new tax code and showing that is calculated by your
standard tax allowance less the amount of your state pension. If you earn
additional money, or are in receipt of additional pensions e.g. from
previous employers or private pension schemes into which you have paid, or
receive payments from investments, etc. any amount of that additional income
over your tax allowance (now reduced by the amount of your state pension) is
taxed at the rate relevant to the income i.e. 20% at basic rate. If you
don't receive any money in excess of your pension related reduced tax
allowance then you won't pay any income tax.
--
http://www.helpforheroes.org.uk
MM
2017-03-01 22:07:55 UTC
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Post by Handsome Jack
Post by MM
Post by Brian Reay
Plus, the pension will be taxed.
Surely you meant to say that one's *income* will be taxed? The state
pension is paid gross. I don't pay any income tax as my income is less
than the personal allowance.
The state pension counts towards one's taxable income. It is paid gross
because it's less than the annual personal allowance.
No, it is not paid gross for *that* reason.

MM
JNugent
2017-03-01 11:43:33 UTC
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Post by MM
Post by Brian Reay
Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?
Something stinks.
Yes it does. I've already retired early and have checked my state
pension contributions. I've comfortably exceeded the required number of
years but don't get any extra when I get the new pension.
Had I under contributed by the same number of years, I would of course
face a reduction.
Plus, the pension will be taxed.
Surely you meant to say that one's *income* will be taxed? The state
pension is paid gross. I don't pay any income tax as my income is less
than the personal allowance.
Not even when your famous "German Pension" is added in?

Do HMRC in fact know about your German Pension?

If not, they ought to be told...

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Sid
2017-03-01 12:39:33 UTC
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Post by MM
Post by Brian Reay
Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on
contributions to April 2016, that I will be entitled to £137 a week when
I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030
seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another
£41k until I retire to get an additional £900 a year on my pension? So
I need to live to about 110 to get full value out of my contributions?
Something stinks.
Yes it does. I've already retired early and have checked my state
pension contributions. I've comfortably exceeded the required number of
years but don't get any extra when I get the new pension.
Had I under contributed by the same number of years, I would of course
face a reduction.
Plus, the pension will be taxed.
Surely you meant to say that one's *income* will be taxed? The state
pension is paid gross. I don't pay any income tax as my income is less
than the personal allowance.
Not even when your famous "German Pension" is added in?

Do HMRC in fact know about your German Pension?

If not, they ought to be told...

What a cool Idea.
Ophelia
2017-03-01 17:15:51 UTC
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Post by MM
Post by Brian Reay
Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on
contributions to April 2016, that I will be entitled to £137 a week when
I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030
seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another
£41k until I retire to get an additional £900 a year on my pension? So
I need to live to about 110 to get full value out of my contributions?
Something stinks.
Yes it does. I've already retired early and have checked my state
pension contributions. I've comfortably exceeded the required number of
years but don't get any extra when I get the new pension.
Had I under contributed by the same number of years, I would of course
face a reduction.
Plus, the pension will be taxed.
Surely you meant to say that one's *income* will be taxed? The state
pension is paid gross. I don't pay any income tax as my income is less
than the personal allowance.
Not even when your famous "German Pension" is added in?

Do HMRC in fact know about your German Pension?

If not, they ought to be told...

=====

He must be living in penury!!! We have state pensions but we also have
several occupational pensions upon which we do pay taxes!
--
http://www.helpforheroes.org.uk
Sid
2017-03-01 17:21:16 UTC
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Post by MM
Post by Brian Reay
Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on
contributions to April 2016, that I will be entitled to £137 a week when
I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030
seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another
£41k until I retire to get an additional £900 a year on my pension? So
I need to live to about 110 to get full value out of my contributions?
Something stinks.
Yes it does. I've already retired early and have checked my state
pension contributions. I've comfortably exceeded the required number of
years but don't get any extra when I get the new pension.
Had I under contributed by the same number of years, I would of course
face a reduction.
Plus, the pension will be taxed.
Surely you meant to say that one's *income* will be taxed? The state
pension is paid gross. I don't pay any income tax as my income is less
than the personal allowance.
Not even when your famous "German Pension" is added in?

Do HMRC in fact know about your German Pension?

If not, they ought to be told...



He must be living in penury!!! We have state pensions but we also have
several occupational pensions upon which we do pay taxes!


MM the known liar once claimed he paid tax on his German Pension.

More remoaner lies.
MM
2017-03-01 22:12:09 UTC
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Post by JNugent
Post by MM
Post by Brian Reay
Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?
Something stinks.
Yes it does. I've already retired early and have checked my state
pension contributions. I've comfortably exceeded the required number of
years but don't get any extra when I get the new pension.
Had I under contributed by the same number of years, I would of course
face a reduction.
Plus, the pension will be taxed.
Surely you meant to say that one's *income* will be taxed? The state
pension is paid gross. I don't pay any income tax as my income is less
than the personal allowance.
Not even when your famous "German Pension" is added in?
It is not liable to be taxed in the UK, due to the provisions of the
Double Taxation Agreement between Britain and the Federal Republic of
Germany.

I do, however, have to pay income tax on the *German* pension *to* the
German Finanzamt, which is the equivalent of HMRC.
Post by JNugent
Do HMRC in fact know about your German Pension?
Yes.
Post by JNugent
If not, they ought to be told...
Thank you for your concern.

MM
JNugent
2017-03-01 11:41:19 UTC
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Post by m***@gmail.com
I've checked my State Pension forecast and it seems that, based on contributions to April 2016, that I will be entitled to £137 a week when I retire in 2030.
My forecast if I contribute another 5 years before 5 April 2030 is £155.65 a week.
In big, bold print it tells me that £155.65 is the most I can get.
(1) what happens to the contributions I make between 2022 and 2030 seeing as they don't increase my pension?
They go where all your "contributions" go - into the general taxation pot.

It isn't about how much you pay. It's about how many years' worth of
contributions you pay (irrespective of the amount each year). This is a
direct continuation of the policy which was in force when National
"Insurance" was a flat charge each week and unrelated to the amount of
one's earnings.

Of course, the Wilson / Callaghan government turned National "Insurance"
into another form of income tax and Brown increased its rate from 10% to
12%.
Post by m***@gmail.com
(2) I'm currently paying £3,800 a year in NI.....so I pay in another £41k until I retire to get an additional £900 a year on my pension? So I need to live to about 110 to get full value out of my contributions?
See above.

The amount of your pension depends upon the number of (weekly)
contributions* you make over a working lifetime. It does NOT depens upon
the total of what you pay in

* You would get the maximum (under current rules) if you made 30 years x
52 weeks' worth of contributions, whether you earned £200 a week gross
or £1,000,000 a week gross.

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