Stae Pension Forecast says I'll get full amount even though I was contracted out?

camelopardis

I checked the new state pension forecast. I'm 50 and according to the site I currently have 34 years NI contributions (up until last April). I'll have done 35 years this April and my forecast shows I'll be eligible to the full £155 a week. I'm unlikely to make any further contributions as I'll be taking early retirement later this year.

However, I was contracted out between 1983-2004, and then contracted in from 2004- to date. Yet the forecast doesnt show any reduction? Does anyone why that might be? Can I trust that its correct?

RADDERS

I am a similar age and my forecast was the same, but I think that the site just assumes that you will be working and paying contributions until SPA.
If you look you should have a starting figure that was up to April 2015 and I think that is the figure you will get with a small amount added on for 2016.

jamesd

There should be two numbers, the top one showing the current situation and the bottom one showing what you'd get if you continued paying in until you reach state pension age. The bottom one should be the flat rate maximum because there are enough years remaining for you to get there by buying extra years or working. The top one should show less to allow for the deductions.

greenglide

The top one should show less to allow for the deductions.

But if sufficient AP has been earned during the not contracted out years the full nSP amount may have already been achieved under the old rules.

Can you please stop referring to "flat rate" in postings. You are perfectly well aware that it is not a "flat rate" and that politicians who referred to that in the early days were wrong but you still keep on referring to it by that term.

greenglide

You could always use the BBC approach and say "so-called flat rate" if it makes you happier.

bigfreddiel

Actually I thought it was sssp! Single tier state pension! fj

jgh

What website did you use? I've been trying to remember the one I used a couple of years ago, but all I can find in the last few days is a site where you can send off to the DWP to ask them to send you a NI statement. The site I remember asked: where were you born? How many years have you work? Here's the answer.

The confusion I've been getting is I keep heared that the future state pension will be regardless of how much NI payments you've made. But this contradicats where other people say you'll get £155 if you've paid 35 years of NI. Or 30 years of NI. What is it??? Arggh!!!

Does anybody know the actual facts, with links to definitive information?

I was born in 1969 and qualify for the state pension when I'm 67. Will that be an amount calculated on the amount of NI payments I've made or not? If it's based on NI payments what is the formula?

Pennylane

I read that only 1 in 3 people will get the full amount of £155.65 so not as good as it sounds.

bigfreddiel

So if it's not based on NI contributions what could it based on?

Of course it's based on your NI contributions, right now 30 years, in a few days time 35 years.

Just google for state pension and go to the .gov pages. fj

bigfreddiel

Pennylane wrote: »

I read that only 1 in 3 people will get the full amount of £155.65 so not as good as it sounds.

Well I must be the 1 of the 1 in 3! And I was contracted out for 15 years.

Cheers fj

greenglide

Nobody ever said that everybody would get the full rate.

Just as now you need to have the required number of qualifying years which is increasing from 30 to 35 years but remember that is is not that long since the number of years reduced to 30. Anyone who didn't get a full CAT-A basic before the required years came down to 30 years is still on less than 100% but everyone tends to overlook that.

The reason for people getting less this time is primarily because of contracting out, this has been covered many times over the years now.