UK state pension forecast question

Tergat

Hoping someone can help with a question I have in behalf of my mum.

She has her pension forecast which states "You can get your State Pension on 25 July 2027

Your forecast is £185.15 a week,

£805.07 a month, £9,660.86 a year"

This is obviously good news and means she will get the full amount. Within that forecast though it also says this "If you’re working you may still need to pay National Insurance contributions until 25 July 2027 as they fund other state benefits and the NHS" - what exactly does this line mean?

Is it not the case that either 1) she keeps working and thus pays NI or 2) doesn't work and so per the wording doesn't need to make NI contributions. I don't really get what it is saying.

Thanks

Lastonestanding

A self employed person my choose to pay NI or not.

Secret2ndAccount

"Even though you have paid enough NI to get a full pension, we will still keep taking NI from your pay packet if your salary is large enough"
It says you may still need to pay because those on low earnings don't pay NI.
NI pays for various benefits, not just pensions. They are just emphasising that you can't stop paying just because you have accrued a full pension.
Note that they do stop taking NI once you are above pensionable age, but then you can't sign on for jobseekers allowance either...

Dazed_and_C0nfused

Tergat said:

Hoping someone can help with a question I have in behalf of my mum.

She has her pension forecast which states "You can get your State Pension on 25 July 2027

Your forecast is £185.15 a week,

£805.07 a month, £9,660.86 a year"

This is obviously good news and means she will get the full amount. Within that forecast though it also says this "If you’re working you may still need to pay National Insurance contributions until 25 July 2027 as they fund other state benefits and the NHS" - what exactly does this line mean?

Is it not the case that either 1) she keeps working and thus pays NI or 2) doesn't work and so per the wording doesn't need to make NI contributions. I don't really get what it is saying.

Thanks

Two things.

The first extract doesn't necessarily mean she is going to get the standard new State Pension.  You/she need to read the forecast in full to see what she has actually accrued so far.  Which might be £185.15 but not always.

You've misunderstood how NI works.  Some employees don't need to pay NI as they don't earn enough.  If she doesn't work or doesn't earn enough she won't be paying any NI.

If she is self employed she may need to pay NI.  It is dependent on taxable profits (ignoring voluntary contributions).

You can get your State Pension on 25 July 2027
Your forecast is £185.15 a week,
£805.07 a month, £9,660.86 a year

Is it not the case that either 1) she keeps working and thus pays NI or 2) doesn't work and so per the wording doesn't need to make NI contributions. I don't really get what it is saying.

Tergat

Dazed_and_C0nfused said:

Tergat said:

Hoping someone can help with a question I have in behalf of my mum.

She has her pension forecast which states "You can get your State Pension on 25 July 2027

Your forecast is £185.15 a week,

£805.07 a month, £9,660.86 a year"

This is obviously good news and means she will get the full amount. Within that forecast though it also says this "If you’re working you may still need to pay National Insurance contributions until 25 July 2027 as they fund other state benefits and the NHS" - what exactly does this line mean?

Is it not the case that either 1) she keeps working and thus pays NI or 2) doesn't work and so per the wording doesn't need to make NI contributions. I don't really get what it is saying.

Thanks

Two things.

The first extract doesn't necessarily mean she is going to get the standard new State Pension.  You/she need to read the forecast in full to see what she has actually accrued so far.  Which might be £185.15 but not always.

You've misunderstood how NI works.  Some employees don't need to pay NI as they don't earn enough.  If she doesn't work or doesn't earn enough she won't be paying any NI.

If she is self employed she may need to pay NI.  It is dependent on taxable profits (ignoring voluntary contributions).

You can get your State Pension on 25 July 2027
Your forecast is £185.15 a week,
£805.07 a month, £9,660.86 a year

Is it not the case that either 1) she keeps working and thus pays NI or 2) doesn't work and so per the wording doesn't need to make NI contributions. I don't really get what it is saying.

Thanks all but might just pick up on this post on particular....

I get you re second point. While it might not be impactful in terms of pension itself thy are flagging that if you do work you might still be paying NI to pay towards the overall NI find that the gov use to pay for various things including pensions/ other benefits etc.

I don't follow the point around the forecast. She has logged in and it shows quite a basic summary whish is what I had quoted in my OP - what specifically is it I need to get hold of?

Dazed_and_C0nfused

Tergat said:

Dazed_and_C0nfused said:

Tergat said:

Hoping someone can help with a question I have in behalf of my mum.

She has her pension forecast which states "You can get your State Pension on 25 July 2027

Your forecast is £185.15 a week,

£805.07 a month, £9,660.86 a year"

This is obviously good news and means she will get the full amount. Within that forecast though it also says this "If you’re working you may still need to pay National Insurance contributions until 25 July 2027 as they fund other state benefits and the NHS" - what exactly does this line mean?

Is it not the case that either 1) she keeps working and thus pays NI or 2) doesn't work and so per the wording doesn't need to make NI contributions. I don't really get what it is saying.

Thanks

Two things.

The first extract doesn't necessarily mean she is going to get the standard new State Pension.  You/she need to read the forecast in full to see what she has actually accrued so far.  Which might be £185.15 but not always.

You've misunderstood how NI works.  Some employees don't need to pay NI as they don't earn enough.  If she doesn't work or doesn't earn enough she won't be paying any NI.

If she is self employed she may need to pay NI.  It is dependent on taxable profits (ignoring voluntary contributions).

You can get your State Pension on 25 July 2027
Your forecast is £185.15 a week,
£805.07 a month, £9,660.86 a year

Is it not the case that either 1) she keeps working and thus pays NI or 2) doesn't work and so per the wording doesn't need to make NI contributions. I don't really get what it is saying.

Thanks all but might just pick up on this post on particular....

I get you re second point. While it might not be impactful in terms of pension itself thy are flagging that if you do work you might still be paying NI to pay towards the overall NI find that the gov use to pay for various things including pensions/ other benefits etc.

I don't follow the point around the forecast. She has logged in and it shows quite a basic summary whish is what I had quoted in my OP - what specifically is it I need to get hold of?

You just need to read the whole of the forecast, not only the headline.

This is an example which has the same wording but the person isn't going to get the forecast amount unless they add more qualifying years.

NB.  It's using last year's amounts

https://images.app.goo.gl/SFzh2s9KErVNWhDS8

QrizB

Tergat said:

I don't follow the point around the forecast. She has logged in and it shows quite a basic summary whish is what I had quoted in my OP - what specifically is it I need to get hold of?

The forecast will look something like this:

The box at the bottom is the bit lots of people overlook (especially if they are planning to retire before state pension age). It tells you whether you've already accrued enough years to get the full figure in your forecast, or whther you need more. In the example above, they need more years.

I think that because you've got the message about still needing to pay NI, you've probably reached the stage where you've already accrued enough. But it's worth confirming.

Tergat

I didn't see anything like the above formats from what she sent me on. In more detail it said:

You can get your State Pension on 25 July 2027

Your forecast is £185.15 a week,
£805.07 a month, £9,660.86 a year

Your forecast

• is not a guarantee and is based on the current law
• is based on your National Insurance record up to 5 April 2022
• does not include any increase due to inflation

£185.15 is the most you can get

You cannot improve your forecast any more.

I will see if she has anything in the same format as the above. Thanks both!!

molerat

If she has already reached the maximum there will only be one figure on the front page, there is usually also a statement such as "You cannot improve your forecast"

xylophone

I don't follow the point around the forecast. She has logged in and it shows quite a basic summary whish is what I had quoted in my OP - what specifically is it I need to get hold of?

Have a look at this - (the example is from  tax year 18/19 when full NSP was £164.35).

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

Does your wife's forecast say that she must continue to contribute to reach £185.15?

Dazed_and_C0nfused

Tergat said:

I didn't see anything like the above formats from what she sent me on. In more detail it said:

You can get your State Pension on 25 July 2027

Your forecast is £185.15 a week,
£805.07 a month, £9,660.86 a year

Your forecast

• is not a guarantee and is based on the current law
• is based on your National Insurance record up to 5 April 2022
• does not include any increase due to inflation

£185.15 is the most you can get

You cannot improve your forecast any more.

I will see if she has anything in the same format as the above. Thanks both!!

That's the extra you needed to read.  She will get the standard amount irrespective of any further NI.  Nothing more you need to do.