State Pension Forecast Seems Too High

Silvertabby · 28 January 2017 at 1:28PM

I obtained both written and on-line forecasts, and both give my foundation amount as £138+ per week. I have always been contracted out, and as I retired last year at 60 (with no intentions of seeking any further paid employment), I expected my foundation amount to be about £120, being £119 plus a few bob of graduated pension.

However, it seems that I have benefitted from the post 2002 SP2 top up for the low paid. Mind you, the only reason I was low paid was because I chose to work part time since 2004 - but it seems that DWP only count the 'pounds in your pocket' rather than the reason for the low pay. I'm well happy with that - but as I've got more than 5 years to go before State pension age I'm not banking on it!

£138 was definitely given as my foundation amount in both quotes. My forecast at SPA was estimated to be £155, subject to working/paying future NI.

xylophone · 28 January 2017 at 2:11PM

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?

Your husband's "Foundation Amount" is £218 - this indicates that he has the full NSP plus a "protected payment" - he cannot increase the pension with additional contributions.

Your "Foundation Amount" is less than NSP and you have nine years before SPA - you can increase your pension to full NSP.

See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf but read £155.60 for NSP.

https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf