The new flat rate pansion/Universal pension - can anyone point me to some info?

[Toot]

I have been out of the job market for 15 years. I am 45, I worked as a teacher from 1990 - 1998 but the last few months of that was maternity pay i.e not a full tax year. My son has special needs (but nothing I get allowances for) so with him and DS2 I have had a child under 12 for 15 years. Under the old pension system, I think I got Home Responsibility Credits for the years I had a child under 12. At some stage these were converted into something called N.I credits. These seem to be weekly things so I am not quite sure how this all adds up but anyway, when you do the rough calculation using the tool on the government website my work years plus the N.I credits seems to give me almost a full pension (think it said £11 below). Was feeling a bit reassured by that but now the system is changing again.

I am struggling to find is hard info on what the new flat rate pension arrangements mentioned in the Queens speach today will do to me. I know the number of years we must work or have credits for has risen (my youngest turned 12 this month so for me it'll have to be work). I also know if I survive my husband I can't use his more complete N.I record to claim a pension.

Not sure where hard info on this new scheme can be found and was hoping someone out there could help? As with yearoftherat in another thread, don't feel entitled to anything, just want to know some facts so I can plan/make decisions for the future.

My youngest goes to highschool in the new school year so I am trying to decide if I should pay to go on one of those return to teaching courses or run my own on line business (I make stained glass). Info on what this decision will do to my finances as an old lady could be useful.

Bumping for a new day

Hi. Haven't checked but the most likely places for something useful will be the DWP website or the Pensions Advisory Service. I suspect there may not yet be anything as detailed as you're looking for though - although this is coming in less than three years there is a hell of a lot to be worked out...

I had a look at the Website on flat rate pensions www.gov.uk/government/policies/making-the-state-pension-simpler-and-fairer

Does anyone know about deductions for contracted-out periods?

It says that if you were contracted out, then you wil get less. However it does not say how the amount of the reduction is calculated.

I would have expected it to be a reduction of £x per week, for each year you were contracted out, but try as i may, I can't find any definition.

Try www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

thanks

looking at the table on page 2 of that doc, their example person was contracted out between 1978 and 1997 (19 years) and has a deduction per week of £38

From which I deduce that they subtract £2 per week for each year in the 1978/1997 period that a person was contracted out. If that's correct I can't see why they don't just say so.

I was contracted out for some years in the 1978/1997 period, so I will try to see how many years it was, and calculate the deduction as £2 per week for the number of years. I have asked for a copy of my NI contributions record which I expect will show the years concerned.

I stopped being contracted-out at some point in the 1990's, so for me the 1997/2002 and thereafter will not be relevant.

Does that seem right?

Pensions wouldn't be my specialist subject on mastermind ... if it was that simple (£2 per week) I would have thought they might highlight that figure.

Rather than me guessing, I suggest you ask on this forum, where there really are some pension experts boards.fool.co.uk/pensions-practical-problems-50065.aspx?mid=12907728

I suspect it isn't as simple as £2 per week for each year,because over time the "value" represented by contracting out has changed and they could be trying to take that into account.

This is a good calculator which I have used. My son has special needs & I doubt I'll be able to work for at least some years yet.
In our case, Carer's Allowance counts towards my pension 'credit' when my son reaches 12.

www.gov.uk/calculate-state-pension/y