No longer going to receive maximum State Pension? What's going on?

xylophone

I was on the gov gateway earlier today and noticed my "estimate of state pension based upon NI record up to 5 April 2021 is £177.75. Forecast if you contribute another 2 years before 5 april 2028  - £185.15pw. £185.15 is the most you can get"

This is from

https://www.gov.uk/check-state-pension ?

If not, go to the above.  Read it all carefully.  It is almost certain that your DB scheme was contracted out. If so, you will have a COPE - what is shown on the forecast?

You appear to have retired (stopped paid work of any kind?)  shortly before you turned 57- are you sure that you have 41 full NI years?

GunJack

The difference is more than likely the triple-lock increases between 2017 and now.... when first introduced in 2016 the max newSP was £155 per week. You may have been slightly over and so have a protected payment, which only went up by CPI.

Up to 21-22 you've got £177, another 2 years voluntary NI will take you to the (current) max.

bigfer

xylophone said:

I was on the gov gateway earlier today and noticed my "estimate of state pension based upon NI record up to 5 April 2021 is £177.75. Forecast if you contribute another 2 years before 5 april 2028  - £185.15pw. £185.15 is the most you can get"

This is from

https://www.gov.uk/check-state-pension ?

If not, go to the above.  Read it all carefully.  It is almost certain that your DB scheme was contracted out. If so, you will have a COPE - what is shown on the forecast?

You appear to have retired (stopped paid work of any kind?)  shortly before you turned 57- are you sure that you have 41 full NI years?

Yes, my DB scheme was contracted out and i have just checked and on the above website I have a COPE of £73.16. On my NI record it states:
You have:

• 41 years of full contributions
• 7 years to contribute before 5 April 2028
• 3 years when you did not contribute enough

I am still struggling to understand how i was told i would get the full state pension in 2017 and now it seems I am a couple of years light.

Many thanks to all for your comments

Albermarle

northernsparky said:

The maximum State Pension forecast makes the assumption that NI contributions continue to be made from 2016 until you reach State Pension age, if you are not in employment then you can make class 3 NI payments to fill any missing years ( post 2016)

As above, The positive point is that buying extra years is a real bargain/very cheap for what you get.

xylophone

I was on the gov gateway earlier today and noticed my "estimate of state pension based upon NI record up to 5 April 2021 is £177.75.

https://adviser.royallondon.com/technical-central/rates-and-factors/state-pension/new-state-pension/


You have now checked your latest state pension forecast.

Look at this example

https://www.which.co.uk/money/pensions-and-retirement/state-pension/your-state-pension-forecast-explained-a24r12y9jt41

Yours now reads as below?

You can get your State Pension on 27 Dec  2028

Your forecast  is £185.15 a week.

You need to continue to contribute NI to reach your forecast.

Estimate based on your contributions up to 5 April 2021

£177.75 a week 

Forecast if you contribute another 2 years before 5 April 2028  - £185. 15pw. £185.15 is the most you can get.

It seems from what you have said that you ceased paying NI after you retired from employment (at age 56) in June 2018.

If it is indeed the case that you are two years short, it may be that you can pay 18/19 and 19/20  to bring you up to full NSP.

Phone the Future Pension Centre to check on your situation discrepancy between the two forecasts.

https://www.gov.uk/future-pension-centre

You seem to have had forty years plus NI when you stopped contributing in 2018 but despite this, because of your COPE, it was perfectly possible to be short of a full NSP.

Below was produced when Govt was planning for NSP (which was actually introduced at 6/4/16).

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

You will note that those who had not reached full NSP amount as at  6/4/16 had the possibility of  improving the situation ( depending on individual  circumstances) so as to bring the forecast up to (but not exceeding) a full NSP.

eastcorkram

There clearly doesn't seem to be a maximum number of years that someone could have had by 2016, in order to get full state pension. 

Is there a minimum amount of years?
For example, you see people on here with 40 and it wasn't enough, presumably due to being in a DB scheme. 

I only have 31 now, and 4 or 5 of those are obviously post 2016. So back when the calculation was done would only have been say 27. Yet my forecast says £187, and I could increase it to £191. 

Audaxer

bigfer said:

This is the information I received in 2 separate letters (4th may & 30th may 2017):

You can get your State Pension on 27 Dec 2028. Your forecast is £159.55 a week. Your forecast is not a guarantee and is based on the current law, does not include any increase due to inflation, is based on your National Insurance record up to 5 April 2016.
£159.55 a week is the most you can get. You cannot improve your forecast any more. 
You may still need to pay National Insurance contributions until 27 December 2028 if you're working. They fund other state benefits and the NHS.

As the maximum new state pension in April 2017 was £159.55, and the OP's letters from May 2017 says his forecast at that time was £159.55 and he couldn't improve his forecast, surely that should have increased each year to the current maximum of £185.15 (see table linked below), even although he didn't make any subsequent NI payments?
New State Pension - Royal London for advisers

xylophone

As the maximum new state pension in April 2017 was £159.55, and the OP's letters from May 2017 says his forecast at that time was £159.55 and he couldn't improve his forecast, surely that should have increased each year to the current maximum of £185.15 

Yes - if his 2017 forecast was accurate and he had indeed accrued £159.55 at May 2017, then his current forecast should indeed show £185.15 - the 17/18 year (he retired age 56 in June 2018) would not have increased his SP if he had already reached maximum NSP.

The problem is the apparent discrepancy between 2017 forecast and current forecast.

xylophone

I only have 31 now, and 4 or 5 of those are obviously post 2016. So back when the calculation was done would only have been say 27. Yet my forecast says £187, and I could increase it to £191. 

Have a look at this,  (page 6 and notes) produced by RL at inception of NSP.

https://www.dpf.org.uk/explorer/files/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

If your state pension forecast is already (even if only slightly) in excess of a Full New State Pension, it is likely that your "starting amount" as at 6/4/2016 was already in excess of a full NSP, even if you had only 27 years.

Were you "contracted in" to SERPS/S2P for the 27 years up to 6/4/16?

In respect of the possibility of increasing up to £191, I wonder if there is an eligible old  year that  you can pay?

Audaxer

xylophone said:

As the maximum new state pension in April 2017 was £159.55, and the OP's letters from May 2017 says his forecast at that time was £159.55 and he couldn't improve his forecast, surely that should have increased each year to the current maximum of £185.15 

Yes - if his 2017 forecast was accurate and he had indeed accrued £159.55 at May 2017, then his current forecast should indeed show £185.15 - the 17/18 year (he retired age 56 in June 2018) would not have increased his SP if he had already reached maximum NSP.

The problem is the apparent discrepancy between 2017 forecast and current forecast.

I agree as I was trying to indicate that the problem was a discrepancy between the two forecasts, as some posters were saying he needed to make another two years voluntary payments. If the 2017 forecast was correct he shouldn't have to make any voluntary payments. If the current forecast is correct, then the wording in the 2017 letters was incorrect, so if it was me I would definitely try to get an explanation from DWP.