State Pension Forecast Seems Too High

Cat_House

Hi there,

Just checked our state pension forecasts online.

Mine is the standard amount of £155 per week, but my husband's forecast says £218...

He is 61 now and started work in 1971 as an apprentice with British Rail, where he worked for about 7 or 8 years. He is not aware that he had any kind of pension set up with BR, which was owned by the Government back then and I wondered if that may account for the higher rate?

He has had other continuous employment since then, but has been unemployed for the last 3 years. He is not claiming any benefits and therefore is not paying any NIC's. We thought this might have reduced his SP, even though he has enough qualifying years.

Can anyone shed any light as to why the forecast is so high or is it just a big mistake?

GunJack

it will be because he's built up earnings-related SERPS/S2P/Additional pension due to not being contracted-out for a period before April 2016...anything over £155-ish at Apr 16 is a protected amount but will only increase at CPI, and the £155 will increase at the triple-lock (whilst it's still in force).

Silvertabby

GunJack is right, as long as your husband either hasn't been in a company pension scheme since he left BR, or if he has been in a company scheme then it wasn't contracted out (of SERPS/SP2)

Contracting out/SERPS out didn't start until April 1978, so his service with BR wouldn't affect his State Pension.

Has he checked with BR pensions to ask if he has any benefits with them? It's possible that he didn't, as he may have needed more service back then.

molerat

His forecast should state if he was contracted out and show a COPE amount if he was, not that it will have any affect on his pension. Agree with checking with RPS as he may have a deferred pension with them https://www.railwayspensions.co.uk/resources/contact

Cat_House

Thanks!

He did have 2 company pensions since BR but thinks he was contracted out at sometime, but is not sure?

He has just contacted BR to enquire if there is any entitlement. Waiting for a reply...

Now, this presents another question for myself. I have worked since 1976 and have 2 company pensions. Final Salary 13 years employment and DB nearly 20 years employment. I remember being advised to contract out at some stage and I also remember being told to contract back in again. No idea when, I just know I did.

So, would I not be entitled to any additional state pension?

molerat

You will not be entitled to anything other than what is shown on your forecast, the calculations include any Additional State Pension / SERPS / S2P / Graduated Pension if entitled, they will not be shown separately. It should state what you currently have and what you can achieve by retirement age with additional contributions. Again if contracted out it should state that and give a COPE amount (which is not really relevant to anything so don't worry about it !) You need to click a few links in the document and not just rely on the front page, you can also see your full NI record.

p00hsticks

Cat_House wrote: »

So, would I not be entitled to any additional state pension?

What exactly does your forecast say ?

If £155 is your current amount rather than your potential one at state retirement age then this suggests that you have indeed accumulated some additonal state pension. If you had been contracted out for your entire working life then your current forecast woudl be closer to £120 than £155.

Cat_House

Thanks for your responses. I think I need to look at the forecast again a bit closer. I still have 9 years left to work until SP, though fingers crossed, hopefully I can retire at 60

AnotherJoe

Cat_House wrote: »

Hi there,

Just checked our state pension forecasts online.

Mine is the standard amount of £155 per week, but my husband's forecast says £218...

He is 61 now and started work in 1971 as an apprentice with British Rail, where he worked for about 7 or 8 years. He is not aware that he had any kind of pension set up with BR, which was owned by the Government back then and I wondered if that may account for the higher rate?

He has had other continuous employment since then, but has been unemployed for the last 3 years. He is not claiming any benefits and therefore is not paying any NIC's. We thought this might have reduced his SP, even though he has enough qualifying years.

Can anyone shed any light as to why the forecast is so high or is it just a big mistake?

I hope not because, from memory from last year when i did mine, mine is £196 (or £199 if i carry on until SPA, which I wont).

green_man

Be carful how much stock you take of the online forecasts. I would get a written forecast if I were you. I used the online service over about 18 months and got figures back varying from £118 to £178, when I finally got a written estimate it was for £158. In particular if you have had periods of contracting out then the online system can often miscalculate.

Cat_House

Have looked again more closely:

Hubby states 2 years short but can pay for 2 years before 2023 - Does this mean if he signs on without claiming money to get the NI paid, he can get 2 years more and his SP will increase?

Mine says £146 now but pay 2 more years to qualify for £155.56, but I have 9 years left to work, so does that mean I might have SERPS and if I work more than 2 years my SP will increase?

Very grateful for your responses...