State Pension forecast questions

BrunoM

Hi all,

I just went through the rigmarole to get an online forecast for my state pension. I learned that 2 of the last 10 years I am not fully paid up on NI contributions (one year was virtually unemployed, plus my first year out of university my so-called employer was a shifty fellow). I'm currently 32 and have 10 'contributing years' so far.

My questions are

a) are there any guarantees or promises to make us trust that in 30+ years the government will be paying out under the same system as now? I.e. the forecast being relevant to the future that far ahead? I don't know what the history is, has this stuff changed often?

b) if the forecast is meaningful, is the below difference worth paying for?

Pension breakdown 24 Aug 2039 - estimated
Basic Pension £82.56
Payable Additional Pension £79.39
Graduated Pension £0.00
Total weekly State Pension £161.95

for the tax years between 6 Apr 2006 and 5 Apr 2039, we estimate that your basic State Pension at State Pension age would increase to £84.25 a week and your total pension to £163.64.

To help you decide whether you want to boost your State Pension in this way, we give you some figures in the table below.

Tax year Total amount of voluntary Class 3 contributions needed Final date to pay amount shown Final date for payment
1996 £220.15 5 Apr 2009 5 Apr 2009
2003 £271.80 5 Apr 2006 5 Apr 2010

I'm finding it hard to convince myself that spending £492 now is really a good price for an extra £1.69/week pension, but maybe I'm being short-sighted? I can afford the money but it comes out of a "mortgage-deposit-to-be" savings account if so

Thanks for any advice. Trying to settle down and be responsible here!

EdInvestor

The rules are about to be changed so that only 30 years will be needed in future to get the max basic pension.Since you are only 32 and have already got 10 years in hand, you would appear to be easily on target without needing to pay for this missing bit.

BrunoM

Brilliant, thanks