State Pension - how much?

[carrot99]

I've recently had my employment pension statement and it has made me wonder about my state pension. By the time I am 65 I shall have paid full NI contributions for 47 years. I am a single woman (never been married) and have no dependants.

Is there a standard weekly pension or will my employment pension mean that my state pension will be reduced?

If there is a standard weekly pension how much is it at the moment?

Thanks folks.

[grasscarp]

You can apply on line for a state pension forecast.
http://www.direct.gov...nforecast/DG_10014008

[ladyalex]

If you look here:

http://www.direct.gov...nforecast/DG_10014008

It will tell you how to get a forecast of your pension.

Your employment pension will have no effect on your state pension, other than that , if it is high enough, you will pay tax on your State pension as well as your work pension.

[carrot99]

thanks Grasscarp I'll give that a go - so I guess that means it isn't a standard payment. Oh well, my own fault for working I suppose!

[carrot99]

thanks ladyalex - I expected to pay tax on it anyway, so it'll be a bonus if I don't.

[grasscarp]

I have just got my pension, as one of the last batch who will be getting it at sixty rather than sixty five I think. I was pleasantly surprised at the amount. I have worked since age sixteen, so 44 years. I am still working as well.

[ladyalex]

There is a standard pension. I'm afraid I do not know how much it is at present. How much you get depends onthe number of National Insurance payments you have made over the years. This number is about to change soon, but I am pretty sure that you would qualify for the full State Pension.

[craft1948]

I have a private pension and a state pension......your state pension is not affected by your private pension arrangements.
Please be aware that you do not need to pay contributions for 47 years, I think it's around 38 years now but the DWP can tell you that. If you are still working after making the full contributions this should not be deducted from your future pay.
Standard pension for a single person is currently £95.00 per week but could be more if you have SERPS contributions as well.
So assuming you just have basic state pension you will be taxed as follows:

Single Persons Tax Allowance this year is - £6475
Basic Pension for year - £4940
Tax allowance to carry over against private pension - £1535 (Allowance - Pension)
So if your private pension was £15,000 you would pay tax on £13465

[hc4361]

You pay National Insurance Contributions until you reach state retirement age, if you earn enough to pay it. The fact you have paid for more qualifying years than necessary does not affect that.

[factor-fiction]

I'm puzzled by your comment "so I guess that means it isn't a standard payment. Oh well, my own fault for working I suppose! ". You will get the standard single person's pension. I am not aware that he basic pension is not reduced in any way just because you worked. The only 'penalty' is that if you have a private pension it caffects the pension credit you can get

[carrot99]

thanks all that's just exactly what I wanted to know.

Factor30 I was just inferring that if I hadn't worked I would presumably get a full state pension (otherwise why do I need to request a pension forecast?) and would therefore, also get income support, free prescriptions, council tax and housing benefit and all the other things that my 82 year old parents DON'T get because they both worked all their lives too! They've lived in the same council flat for 50 years and they still haven't got double-glazing and they are the only ones actually paying their own rent out of their pensions in their block. (8 flats so we do know!)

Don't be puzzled for me - I'll puzzle for myself - because as a British worker I need to know if I'll get anything out of my 47 years contributions when I retire. Did you notice Grasscarp is pleased to be one of the last allowed to retire at 60 - that was the deal when I signed up too, but for me it's now 65. I'm not there yet so fingers still crossed.

[ladyalex]

You get free prescriptions if you are over 60 no matter what your income. It's printed on the form.

[carrot99]

thanks ladyalex - unfortunately I'm in rude health - as has just been exposed in my rant!

[ladyalex]

Fortunate, I'd say, having had my share and somebody else's of poor health this year. :-))

I'm sure you'll find the pensions website very helpful. They respond pretty quickly.
Good luck.

[carrot99]

thanks again, everyone has been very helpful

[craft1948]

hc4361 (Sat 22:24 05/Dec/09) Report This
You pay National Insurance Contributions until you reach state retirement age, if you earn enough to pay it.
------------------------------
Are you sure about this hc......the DWP rang me about my pension in the March, I wasn't 60 until the August. I wasn't working at the time but he told me that if I did get another job before I was 60 I was to tell them I shouldn't pay contributions as I was classed as "fully paid up"......

[hc4361]

You need a pension forecast because the basic state pension is often supplemented by additional contributions you have made in such schemes as SERPS, graduated pension, state second pension and others the governments have introduced and dropped over the years. You may have forgotten you made these contributions.
So, whilst everyone who has paid the minimum required National Insurance Contributions receives the basic state pension (regardless of private pension, savings and assets) some people will receive a bit more, others a lot more.

[carrot99]

I shall look into that craft if it is not mentioned on the pension forecast - thanks for bringing that to my attention.

[DEN53]

Carrot - my Mum & Dad are both 80 and have worked all their lives. I have got them help with paying reduced council tax and also recently earnings related pension credit. Have a look at what help you can get for them - you may be pleasantly surprised.

[hc4361]

I am very sure, craft.

When do I start paying National Insurance Contributions?

You must pay Class 1 National Insurance Contributions if:

* you work as an employed earner (employee) in the UK,
* you are 16 or over and under State Pension age (currently 60 for women, 65 for men), and
* your earnings exceed a prescribed minimum level, known as the Earnings Threshold (ET).

http://www.hmrc.gov.uk/faqs/nicqc1.htm

You have to pay national insurance contributions while you are working and under pension age, if you earn more than a certain amount called the primary threshold. You do not pay them if you are under 16, and you stop paying them when you are 60 (if you are a woman) or 65 (if you are a man).

http://www.adviceguid...ions_and_benefits.htm

[craft1948]

okay hc........obviously the DWP person told me wrong information.....