State pension forecast

JoeEngland

I know there's been loads of questions about this, but here goes. I've just been on the Govt Gateway and my SP forecast is 175 a week based on 34 years of NICs as of this April. It also says that I cannot increase the forecast any more.

Is the forecast based on my NICs to date or does it assume I pay so many years more before SP age? The GG forecast is more confusing than helpful because it doesn't give all the relevant facts.

Linton

If further years' NI would give you a higher SP the forecast would give the details.


In your case you had already earned more than the new standard SP thanks to SERPS/S2P/SSP by the time the new system started in April 2016 and so any further NI contributions have zero effect.

JoeEngland

Linton wrote: »

If further years' NI would give you a higher SP the forecast would give the details.


In your case you had already earned more than the new standard SP thanks to SERPS/S2P/SSP by the time the new system started in April 2016 and so any further NI contributions have zero effect.

Thanks. My forecast a year or two ago was 164 a week. I've given up trying to understand the complexities of the SP system, but pleased that for whatever reason I'll get more than 164 a week. The main thing is that I don't need any more eligible years of contributions to get the full SP.

Tom99

From memory I think the forecast gives you up to three figures:
1 - Your pension forecast (which may assume you continue to contribute)
2- Pension earned as at April 2018 (it might be April 2019 by now)
3 - Your maximum pension (which may assume you continue to contribute and/or fill in missing NI years)

Puddleskipper

Now I am confused? I went on the GG last weekend to get an updated pension forecast. I have a state pension forecast of £168.60 p.w. as of July 2027 but I will need another 4 years NI to get this amount as of April 18 (Not updated yet to 2019). I currently have 42 years of full contributions with another 9 years to contribute. My current estimate based on my NI record up to 5th April 18 is £153.78. It tells me that £168.60 is the most I can get.



How is it that 34 years gets a higher forecast than 42 years? Is it because I have been in a contracted out pension scheme?

JoeEngland

Tom99 wrote: »

From memory I think the forecast gives you up to three figures:
1 - Your pension forecast (which may assume you continue to contribute)
2- Pension earned as at April 2018 (it might be April 2019 by now)
3 - Your maximum pension (which may assume you continue to contribute and/or fill in missing NI years)

Maybe I need to go back on GG to find more details but the main page only gave one figure.

Tom99

Puddleskipper wrote: »

Now I am confused? I went on the GG last weekend to get an updated pension forecast. I have a state pension forecast of £168.60 p.w. as of July 2027 but I will need another 4 years NI to get this amount as of April 18 (Not updated yet to 2019). I currently have 42 years of full contributions with another 9 years to contribute. My current estimate based on my NI record up to 5th April 18 is £153.78. It tells me that £168.60 is the most I can get.

How is it that 34 years gets a higher forecast than 42 years? Is it because I have been in a contracted out pension scheme?

3 yrs after April 18 will get you to £168.23, the 4th year will only add another 37p
Yes its because you were contracted out.

Mnd

What concerns me is the recent news that the forecasts may be wrong. It's forecasting 196 a week for me starting January 2020, as well as my occupational pension of 7400 pa.

Obviously I'm very lucky, but I still worry that it will be a lot lower than yhis

sheslookinhot

Puddleskipper wrote: »

Now I am confused? I went on the GG last weekend to get an updated pension forecast. I have a state pension forecast of £168.60 p.w. as of July 2027 but I will need another 4 years NI to get this amount as of April 18 (Not updated yet to 2019). I currently have 42 years of full contributions with another 9 years to contribute. My current estimate based on my NI record up to 5th April 18 is £153.78. It tells me that £168.60 is the most I can get. How is it that 34 years gets a higher forecast than 42 years? Is it because I have been in a contracted out pension scheme?

Yep, just checked my SP forecast. £168.60. I have paid in enough contributions, so this is my maximum SP in 2025.

p00hsticks

Puddleskipper wrote: »

How is it that 34 years gets a higher forecast than 42 years? Is it because I have been in a contracted out pension scheme?

Yes - you were paying a lower rate of NI while contracted out.

Everyone's circumstances were looked at individually when switching over to the new State Pension (nSP) to get an individual starting amount.

Going forward, the notion of being contracted in or out was done away with, and every NI year post-2016 simply adds 1/35th of the nSP amount until the maximum (currently £168.60) is reached.

People like JoeEngland (the OP) tend to be the losers in this - as they had already got more than the new maximum amount by being contracted in, although that amount is protected and they'll still get it. they've lost the opportunity to increase it any further.