State Pension Calculations

[Zak33]

Lo financial wizards (and mere mortals who are interested)

I signed up to the Governement Gateway for Self Assessments last year, have used it twice and it's pretty good.

I spotted a Pension Calculations site there, so signed up, waited for the passcard to arrive in the post, and have now accessed an estimate for my Basic State Pension for when I'm even older than the old that I am now It also calculates my State Second Pension, which is supposed to be inline with my earnings through my life, if I'd stayed in it.

I know/think I know, that the Government will be enforcing people to rejoin the State Second Pension, around about 2012. I have been Contracted Out of it, and from SERPS (State Ernings Relatated Pensions) before that, pretty much my entire life. All of those contributions have gone into my own Pension pot/s. So from 2012 I think my contributions will be going into the State Second Pension pot again, from there unto eternity (lets presume)

Question: Does my Forecast that I got this week from the Goverments Portal, INCLUDE THE PRESUMPTION that I'll be back in it for the next 20-30 years, or is it using CURRENT specs and calculating that I'll be out?

[schmunk]

Firstly, I'd like to say that I haven't got a clue.

However... From what I can see it is giving you an estimate in 'today's money terms', so if it is a figure around £95/week it's just taking into account the basic element, as that's the current figure.

If it's a figure higher than that, it's taking into account some S2P.


Caveat: The above may be completely incorrect.

[Zak33]

Firstly, I'd like to say that I haven't got a clue.

However... From what I can see it is giving you an estimate in 'today's money terms', so if it is a figure around £95/week it's just taking into account the basic element, as that's the current figure.

If it's a figure higher than that, it's taking into account some S2P.


Caveat: The above may be completely incorrect.

Well, best to admit that you don't bud, so thanks for sticking your head above the Parapet.

The Basic Element calculation is as you say, around £95 per week if the basic stamp keeps going in until retirement, a date which starts to go up from 65 years old by the time I get there, to around 67.

But the S2P part is the bit that looks pitiful. Now I HAVE been out for most of my life, which is 20 years of payments. BUT as I'm not 40 yet, and won't retire until I'm 67, you'd think that forced S2P payments from 2012 would result in a bit more than £4 per week, which is what it shows at the mo.

I don't think this calculator is allowed to ahow something that's not come into force, and if it's being run by people with even half a brain, they'll wonder if this or any other government actually will do what they say they're gonna do.

But it's a concern that I don't know.

[Zak33]

bump...

anyone else know?

[schmunk]

http://www.thepensionservice.gov.uk/...tact-phone.asp - 0845 300 0168

http://www.pensionsadvisoryservice.org.uk/ - 0845 601 2923

[greenalien]

Useful calculator for how much you need to save for your pension here :

http://www.thisismoney.co.uk/pension-pot-calculator

[Zak33]

OK, I rang the State Pension Forecast Dept on 0845 3000168 and told her my problem but she said that I won't be forced back into a State Second Pension Contribution.

I asked her twice, and said I'd read that I would be in many places, and she assured me that I won't be forced back into it.

So either http://www.thisismoney.co.uk/contracting-out is wrong or she was.

I thought I'd ring the General Pension help line on 0845 6060265 and she sounded bemused by my query. It transpires she only deals with people over 60 and their enquires about their current pension.

But she did have a number for State Second Pensions.
0845 915 0150

So I rang that and it's Revenue and Customs... who are closed in the evening and open in the time I work daily. Useful.

[Zak33]

PAge 27 of this Gov /pdf says I will be opted out, but 2012 is not set in stone yet.
http://www.thepensionservice.gov.uk/pdf/pm/pm7jan08.pdf