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

bigfer

So managed to speak to someone at the Newcastle Pension Centre regarding the anomaly between my two forecasts. It transpires that the forecasts i obtained in 2017 were sent out in error without the COPE figure. Apparently there were around 250000 of these. I asked why i was not personally informed about this as soon as it was discovered. The response was I would have been informed around 4 months before I received my state pension!!!

For over 5 years I was blissfully ignorant of this and it was only by chance that I discovered it when in an idle moment I visited the gov gateway. I suggest everyone of a similar age / circumstance as myself checks their forecast again. Whilst this was not a deal breaker for me retiring, I do find it extremely annoying and rather worrying that our state pension is being run in such a sloppy manner.

The adviser did say I could pay a lump sum of £795.60 to get up to £183.04pw for one years addition contribution and £824.20 to get up to the full £185.15 for a second year......unless they have got that wrong too. So i may just bother with the first payment or do people think the second one is worth it with a 7.5 year payback?

Many thanks to everyone who has commented on this.   

QrizB

bigfer said:

... do people think the second one is worth it with a 7.5 year payback?

How long do you expect to live after State Pension Age? If you've got a life-limiting illness and don't expect to make it to 75, only pay for the first year. If you're expecting to make it into your late 80s like most retirees do, you'll benefit from the second year too.

Audaxer

bigfer said:

The adviser did say I could pay a lump sum of £795.60 to get up to £183.04pw for one years addition contribution and £824.20 to get up to the full £185.15 for a second year......unless they have got that wrong too. So i may just bother with the first payment or do people think the second one is worth it with a 7.5 year payback?  

In your first post you said you have 2 years after your retired when there are gaps in your NI record. What does your NI record show as the cost of paying these years? The £824.20 is the cost for this financial year 2022/23, so it may be cheaper to fill one of the other tax year gaps after you retired in 2018.

molerat

Audaxer said:

bigfer said:

The adviser did say I could pay a lump sum of £795.60 to get up to £183.04pw for one years addition contribution and £824.20 to get up to the full £185.15 for a second year......unless they have got that wrong too. So i may just bother with the first payment or do people think the second one is worth it with a 7.5 year payback?  

In your first post you said you have 2 years after your retired when there are gaps in your NI record. What does your NI record show as the cost of paying these years? The £824.20 is the cost for this financial year 2022/23, so it may be cheaper to fill one of the other tax year gaps after you retired in 2018.

£795.60 is the cost for 20-21 at the original preserved for 2 years rate and will increase in April 23.  £824.20 is the cost for any year outside the 2 year window, so any year prior to 20-21, again all increasing in April 23.
Although 21-22 may be available at £800.80.

xylophone

In your first post you said you have 2 years after your retired when there are gaps in your NI record. 

The OP says

The adviser did say I could pay a lump sum of £795.60 to get up to £183.04pw for one years addition contribution and £824.20 to get up to the full £185.15 for a second year.....

£795.60 is the rate for 2020/21.

The OP says that he retired in June 2018 (at the age of 56 1/2). This is presumably from the company which had the DB then DC Scheme.

Perhaps the OP could clarify his  working/NI history after that point?

bigfer

xylophone said:

In your first post you said you have 2 years after your retired when there are gaps in your NI record. 

The OP says

The adviser did say I could pay a lump sum of £795.60 to get up to £183.04pw for one years addition contribution and £824.20 to get up to the full £185.15 for a second year.....

£795.60 is the rate for 2020/21.

The OP says that he retired in June 2018 (at the age of 56 1/2). This is presumably from the company which had the DB then DC Scheme.

Perhaps the OP could clarify his  working/NI history after that point?

I have checked my NI record online:

2018-19 Full year. Contribution from paid employment £1646
2019-20 not full. Voluntary contribution £824.20 by 05/04/26
2020-21 not full. Voluntary contribution £795.60 by 05/04/27

My working history since June 2018, according to my wife, has been sod all. I have not paid any NI since that glorious day when I emptied the stationary cupboard and skipped out the gate.

I think I'll just pay for the two years now before they move the goalposts again. As others have stated, it is a decent deal if you look at the figures £1619.80 outlay for £384.80p.a. in 6.5 years time is not bad, assuming I make it of course.

xylophone

My working history since June 2018, according to my wife, has been sod all. I have not paid any NI since that glorious day when I emptied the stationary cupboard and skipped out the gate.

Were all the others dancing a jig to celebrate leaving day?

As to Mrs Bigfer's comment, it reminded me of a cartoon I saw once of a fed up wife viewing an unkempt hubby snoring on a sofa........

"You've heard of Beau Brummell and Beau Geste?  There's Bone Idle........"