State Pension forecast vs years of full contributions.

Korkyb

Hi all
Apologies if this has been asked loads of times before.

I've just delved into my State Pension Forecast for the first time & am a bit confused (to be fair that's not difficult).

It says:

Estimate based on your National Insurance record up to 5 April 2020

£157.16 a week

Forecast if you contribute another 4 years before 5 April 2033

£175.20 a week

My NI record says:

You have:

• 38 years of full contributions
• 13 years to contribute before 5 April 2033

You do not have any gaps in your record.

I thought that once you reached 35 full years that you qualified for the full pension.

I'm guessing that it may be due to the fact my work pension is a NHS one??

Dazed_and_C0nfused

35 years only applies to those fully under the new system i.e people starting their journey to State Pension post April 2016.

You are under transitional rules. 

Which basically means you have had the benefit of paying lower NI for a number of years but can now build up your pension to the "new" State Pension standard amount.

You will have a COPE amount shown on your forecast as well.  You don't deduct that from the £157.16.  And the NHS don't pay that specific COPE amount (chances are your NHS pension far exceeds the COPE amount).

xylophone

At 6/4/16, two calculations were done.

The basic state pension at that date was £119.30.        The New State Pension was £155.65.

Old Rules
NI years (up to 30)/£119.30 + (Additional State Pension - deduction for Contracting Out)

New Rules
NI years (up to 35)/£155.65) -  Contracted Out Pension Equivalent ( aka Rebate Derived Amount)

Your starting amount was the higher of the two.

You were able to increase your SP up to a full NSP by making the necessary contributions from 6/4/16.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

Korkyb

That makes sense - thanks for the explanations.

I've got another few years work left in me so should reach full state pension before I put my feet up completely.

Being Scottish & male whether or not I'll make it to state pension age is another matter altogether :-)