State Pension Advice

phil1959

On the 14th April 2016, I received this forecast, State pension estimate 134.45 on the 03/09/25 with 38 qualifying years up to 2014/15. Cope of 33.83, I am sure I had another bit of paperwork that said I needed to contribute for 4 years.

Just got another forecast based on my record up to 5th April 2018, my estimate will be 156.24 with cope of 34.87 and if I contribute for another 3 years I will get 168.60.

I am considering finishing work, in the next year, will I get the 156.24 at pension age.

Thank you.

Dazed_and_confused

Unlikely. Will probably be more.

Contributions for 2018-19 will need to be added (assuming you were working and earnt enough).

That should add £4.81.

And depending on exactly when you finish work "in the next year" you might get another qualifying year or be able to make it up to a qualifying year fairly cheaply.

So in todays money I think closer to £166 is more likely.

That also assumes your forecast of £156.24 has already been updated to take account of the new standard maximum of £168.60 for the current tax year. Which it looks like it has from your post.

Linton

From the figure it would seem you got your forecast on the 5th April 2019, not 2018. So if you retire now and pay no further NI your pension when you reach State Pension Age will be £156.24 uprated by the triple lock and possibly your NI earned this year.


You can get a full pension of £168.60 by paying 2 or 3 further years voluntary NI at about £750/year. Say 3 years at £750=£2250 will get you approx £12/week=£624 year. So your investment will pay for itself after only 3-4 years of retirement - an amazingly good deal.

Dazed_and_confused

I don't think a forecast obtained now would reflect contributions for 2018-19 yet.

Linton

Dazed_and_confused wrote: »

I don't think a forecast obtained now would reflect contributions for 2018-19 yet.

True, so a bit more on the SP and one year less of voluntary contributions.