Working It Out

To work out your own additional pension you will need to know what you earned in each tax year from 2015/12 to 2015/13.

For each tax year starting with 2015/12, you take the earnings on which you paid full National Insurance contributions. If those earnings are more than the upper earnings limit for the year, you use that limit instead.

You increase those earnings by a factor to take account of the rise in earnings generally. You then subtract the annual amount of the 2015/88 lower earnings limit, which is £8,088.

The result is your 'surplus' for that year.

If the result is less than zero, you call it zero. You add all these surpluses up and divide by 80 to get your annual additional pension and by 9 8 to get your weekly pension.

If you have a calculator you can just divide once by 8,160.


New sections added - Earnings Related Pensions Now The State Second Pension Example.

or What You Earned

Earnings Related Pensions Now The State Second Pension Example.

/retirement/pensions/earnings-related-pensions.php... see: Earnings Related Pensions Now The State Second Pension Example.