Apologies - Another State Pension Forecast Query

thriftytracey

Hi everyone

Hoping someone can answer this.

I retired from my employment aged 59 in 2019.  I knew I had gaps in my NI contributions due to the opt out and years before I reach state pension age of 66.  I now want to pay the missing NI contributions so I ran a forecast which is as follows:-


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

£185.15 is the most you can get

You cannot improve your forecast any more.

you have:

• 39 years of full contributions
• 4 years to contribute before 5 April 2025
• 7 years when you did not contribute enough

2020-21

Year is not full

You did not make any contributions this year

Find out more about gaps in your record and how to check them.

You can make up the shortfall

Pay a voluntary contribution of £795.60 by 5 April 2027. This shortfall may increase after 5 April 2023.

Find out more about voluntary contributions.

2019-20

Year is not full

You have contributions from

Paid employment: £492.57

Find out more about gaps in your record and how to check them.

You can make up the shortfall

Pay a voluntary contribution of £110.95 by 5 April 2026. This shortfall may increase after 5 April 2023.

Find out more about voluntary contributions.

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1.  Is it correct that I would need to pay these missing years to achieve a full state pension of £185.15 (The "you cannot improve your forecast any more" is confusing)?

2.  I don't intend to work up to age 66 when I qualify for the state pension so will I need to keep doing forecasts each year up to 2025 and pay further missing years as they become due?

There are other missing years during the 1980's (opt out period) however the advice is that the cut off is six years.

Thank you.  I know how difficult it is to get through to the Pensions and NIC gov departments.

Dazed_and_C0nfused

1.  No

2. Not unless the rules change.

Don't you believe this?

You cannot improve your forecast any more.

sheslookinhot

Dazed_and_C0nfused said:

1.  No

2. Not unless the rules change.

Don't you believe this?

You cannot improve your forecast any more.

It’s quite clear, but I can also understand the OP being a tad confused (and dazed) when the website also indicates he has a shortfall. Not everyone has your knowledge.

Albermarle

• 4 years to contribute before 5 April 2025

It is confusing, as you could read this as £185.15 is the most you can get, and  you will get this on the assumption that you will be working for another 4 years at least. 
However I am no SP expert.

Milltir

You can make up the shortfall

Pay a voluntary contribution of £110.95 by 5 April 2026. This shortfall may increase after 5 April 2023.

Find out more about voluntary contributions.

It is confusing because it infers the OP should make a voluntary contribution.

Dazed_and_C0nfused

Milltir said:

You can make up the shortfall

Pay a voluntary contribution of £110.95 by 5 April 2026. This shortfall may increase after 5 April 2023.

Find out more about voluntary contributions.

It is confusing because it infers the OP should make a voluntary contribution.

Have to disagree there, it suggests a voluntary contribution can be made, not that it should be made.

inkydolphin

Dazed_and_C0nfused said:

Milltir said:

You can make up the shortfall

Pay a voluntary contribution of £110.95 by 5 April 2026. This shortfall may increase after 5 April 2023.

Find out more about voluntary contributions.

It is confusing because it infers the OP should make a voluntary contribution.

Have to disagree there, it suggests a voluntary contribution can be made, not that it should be made.

The bit that's missing from the forecast is why it could/should be made. This from GOV.UK (Voluntary National Insurance: Gaps in your National Insurance record - GOV.UK (www.gov.uk)): "Voluntary contributions do not always increase your State Pension. Contact the Future Pension Centre to find out if you’ll benefit from voluntary contributions." e.g. it could affect whether you qualify for some benefits.

thriftytracey

UPDATE

I probably did not phrase my question clearly in the post.  However, I do believe there is ambiguity there despite it stating that "you cannot improve your forecast any more" due to the detail re missing years.  Also, in my husband's case we did pay for the missing years that we were able to which improved his state pension amount.

I was able to get through to the Future Pension Centre (Telephone: 0800 731 0175) without too much delay.

The person I spoke to confirmed that I do not have to pay the "missing years" and I won't have to pay any future missing years.

He stated that if the rules did change the cut off period would be such that they would probably not apply in my case.

xylophone

Have a look at this (18/19 tax year when maximum NSP was £164.35).

You will note that the forecast is for the maximum BUT it makes it clear that the individual must continue to contribute to reach his forecast.

In the OP's case, presumably  the forecast shows that the estimate based  as at 5/4/21 (22? ) was  already for full NSP and therefore she did not have to make any  further contributions to reach  her forecast - she had already reached the maximum possible in her circumstances.

Those circumstances would have included any COPE deduction (once only) at 6/4/16.

ader42

I fully agree that it is confusing an ambiguous.

My forecast says:

“You need to continue to contribute National Insurance to reach your forecast”

And says I need to contribute 3 more years.

It would be best if yours said something like:

“You do not need to continue to contribute National Insurance to reach your forecast”

MallyGirl

xylophone said:

Have a look at this (18/19 tax year when maximum NSP was £164.35).

You will note that the forecast is for the maximum BUT it makes it clear that the individual must continue to contribute to reach his forecast.

In the OP's case, presumably  the forecast shows that the estimate based  as at 5/4/21 (22? ) was  already for full NSP and therefore she did not have to make any  further contributions to reach  her forecast - she had already reached the maximum possible in her circumstances.

Those circumstances would have included any COPE deduction (once only) at 6/4/16.

@xylophone should there be a picture or link?