My state pension shortfall

alansbargains

Hi, I hope someone can help?

The Gov.uk site says that My expected pension at retirement will be £174.61 not the full amount of £185.15, this is despite the fact that I have 45 years of full contributions.
The below info is an extract from my Gov.uk National insurance record 

45 years of full contributions

• 3 years to contribute before 5 April 2024

• 2 years when you did not contribute enoug

I have searched the MSE site and it says that I have adequate years for a full state pension. I am not sure what to do next.

Kind Regards

Stubod

..depends on your age and whether you were "opted out".

You can always buy additional years...approx £700 per year short which is good value as your "payback" is only a few years...

jimi_man

Hi

The number of years of contributions is irrelevant as you fall under the transitional system, so '35' years won't apply. You may need more or less depending on whether you were Contracted Out (usually meant paying into an occupational pension). 

You can either make a voluntary payment or if you are still working then continue to accrue SP by your NI contributions. It's around £5 per week for an extra £750 or per year of working, so you only need two years worth.

molerat

If you post up the FULL details of what the forecast shows, how many pre and post 2016 years, any gap years and any COPE amount someone will give you a rundown of your options.

Audaxer

alansbargains said:

Hi, I hope someone can help?

The Gov.uk site says that My expected pension at retirement will be £174.61 not the full amount of £185.15, this is despite the fact that I have 45 years of full contributions.
The below info is an extract from my Gov.uk National insurance record 

45 years of full contributions

• 3 years to contribute before 5 April 2024

• 2 years when you did not contribute enoug

I have searched the MSE site and it says that I have adequate years for a full state pension. I am not sure what to do next.

Kind Regards

As you get an extra £5.29 per week for each extra years contribution, then only 2 additional years will take you up to the maximum £185.15. If you have already stopped working it is certainly worth making voluntary contributions for these 2 years.

Silvertabby

If, as seems certain, you were contracted out (of SERPS/SP2) then you don't have 45 years of 'full' NI contributions as you will have paid a reduced rate of NI.

For some unfathomable reason, when DWP say 'full NI' they actually mean 'full financial year' and not 'paid full rate of NI'.

 

xylophone

The Gov.uk site says that My expected pension at retirement will be £174.61

Is there a COPE shown on your forecast?

https://www.gov.uk/government/publications/state-pension-fact-sheets/contracting-out-and-why-we-may-have-included-a-contracted-out-pension-equivalent-cope-amount-when-you-used-the-online-service