State Pension forecast less than full amount - NOT contracted out

xylophone

It has now been established that the OP's husband has some SERPS and possibly a tiny amount of S2P.

As explained in post 2, his entitlement under old and new rules was calculated and he received the higher of the two.

It is quite possible that the old rules calculation was the higher of the two, even if only by a few pounds.

If so, it seems to me that the situation is as in post 13?

maryroberts

Thanks Xylophone. I see what you are saying in post 13. Looking at it simply, by 2026 (if he pays all the shortfall) he will have 25 years at the old rate £4.08 + 10 years at the new rate £4.56


£99.42 + £45.60 = £145.02 per week, compared with their forecast of £144.92 per week (only 10 pence difference!)


I think his forecast is confusing me because the difference between £144.92 - £132.69 = £12.23 which equates to 3 years at £4.08, so I'm reading it as it's only worth him paying another 3 year's shortfall rather than the 7 years that he owes all together. Maybe it's a huge coincidence and I'm misunderstanding it!


(Quote) if you contribute to 05/04/26 you will receive £132.69 a week. You can improve your forecast by paying the shortfall in your NI record. The most you can increase your forecast to is £144.92 a week.

maryroberts

datlex wrote: »

OP what type of National Insurance Contributions did your OH pay.

https://www.gov.uk/national-insurance/what-national-insurance-is-for

On his NI Statement they are all Class 1, plus we've paid 2 year's worth of voluntary Contributions so far with another 7 to go


Didn't think the type of contribution makes a difference to his State Pension?

xylophone

The simple calculation seems to me to be the logical one on the figures provided but I think we'll need to await the letter from the DWP which should answer your questions.

Jerben

maryroberts wrote: »

Thanks Xylophone. I see what you are saying in post 13. Looking at it simply, by 2026 (if he pays all the shortfall) he will have 25 years at the old rate £4.08 + 10 years at the new rate £4.56


(Quote) if you contribute to 05/04/26 you will receive £132.69 a week. You can improve your forecast by paying the shortfall in your NI record. The most you can increase your forecast to is £144.92 a week.

OP. Just to advise... its not really possible to work out the 'old rate' as a £ value as you have. A 'calculation' was done (dated April 2016) which takes a number of factors into account!
That is why 'some' posters on here find that paying now, for NI years before 2016 does not actually increase the pension value!!
You are correct in apportioning a value, £ 4.56, to years after 2016, as you have.

maryroberts

Jerben wrote: »

OP. Just to advise... its not really possible to work out the 'old rate' as a £ value as you have. A 'calculation' was done (dated April 2016) which takes a number of factors into account!
That is why 'some' posters on here find that paying now, for NI years before 2016 does not actually increase the pension value!!
You are correct in apportioning a value, £ 4.56, to years after 2016, as you have.

Well this is a bit worrying, although it seems that he does need to pay the shortfall for at least some years pre-2016 otherwise he will only receive £132.69 a week instead of £144.92. I suppose when we're ready to pay for another year's shortfall (£689) I can monitor the figure shown online and see if it rises by £4.08!

maryroberts

xylophone wrote: »

The situation could be as Molerat conjectures in post 14 but on the figures given it seemed to me that DWP had given the maximum if all available years were paid - it's a case of waiting for an explanation/decision from DWP.

I hope you'll come back with the decision when you've heard from the DWP.

.

UPDATE - just thought I'd let you know that we received a letter from HM Revenue & Customs which confirmed the shortfall amounts due for 2011-14. As they missed off 14-15 in the letter, we decided to phone them today for clarification. They were very helpful and then transferred me to DWP to enquire about husband's State Pension Forecast (he authorised them to speak to me as he's a bit clueless about it all!).

In a nutshell, he has a shortfall of 7 years but the online system only recognises 3 of them as it says 'under investigation' for the other 4 (even though we've now been given the amounts due). This explains the difference between the 2 figs on the forecast (£144.92 -£132.69) = 3 years contributions at £4.08 for each year. They were again very helpful and confirmed that if the shortfall for all 7 years was paid + 9 future years, husband would indeed receive the full State Pension :j

Thank you all so much for your help and advice.