State Pension Forecast Sticky

nigelbb

Audaxer said:

eskbanker said:

Likewise, this isn't helpful:

To get the full new state pension (currently £185.15 a week), you'll likely need at least 35 qualifying NI years (though some will need many more).

in that the misconception that 35 years is a relevant figure (for here and now) is widespread, judging by the number of threads perpetuating it.

Agree, and I seem to remember about a year ago or more, we were asked to review the guide and I'm sure it was changed following comments by some of us, to say that many people actually need well over 40 years of NI contributions to get the maximum new SP.  However, from a quick look, I can't see that wording now anywhere in the guide?

I also think if the sticky thread is to be headed, 'How to read your state pension forecast' it should highlight and explain the important points in the actual forecast like for example the Estimate figure based on NI contributions to date.

It also needs to be stated that even with over 40 years of NI contributions it may still be impossible get the maximum new SP.

Pat38493

The other thing that could be made clear is how the state pension forecast number given relates to the "you have x years to contribute" comment on the website.  

As far as I can tell, if your forecast already shows the maximum amount and says "you cannot increase this any more", this is the situation already today.  It may then go on still further to say "you have x years to contribute" but this is irrelevant if you have already accrued the maximum amount.  This confused me at least because I wondered - is that forecast based on an assumption that I will continue to contribute for that number of years.

p00hsticks

Pat38493 said:

The other thing that could be made clear is how the state pension forecast number given relates to the "you have x years to contribute" comment on the website.  

As far as I can tell, if your forecast already shows the maximum amount and says "you cannot increase this any more", this is the situation already today.  It may then go on still further to say "you have x years to contribute" but this is irrelevant if you have already accrued the maximum amount.  This confused me at least because I wondered - is that forecast based on an assumption that I will continue to contribute for that number of years.

A similar discussion on these boards the other day prompted me to check my own forcast. I was under the mistaken impression that the appeareance of the phrase '£185.15 is the most you can get' indicated that you were already at the maximum, but this isn't the case.  I think the key phrase to look out for is 'you need to continue to contribute National Insurance to reach your forecast'.

What would be most helpful would be if the guide could include a sample screenshot of a State Pension forecast as obtained from the Government gateway, with each of the various statements / sections numbered and then an accompanying explanation of what each bit means. Unfortunately my IT skills aren't up to it, but I'm sure someone on the MSE team could pull something together. (you may need more than one, showing what it looks like if you are already at the maximum or above compared with what it says if you still need to contribute).

MallyGirl

I agree that some example screenshots would be helpful.

Audaxer

eskbanker said:

squirrelpie said:

xylophone said:

in that the misconception that 35 years is a relevant figure (for here and now) is widespread, judging by the number of threads perpetuating it.

It is relevant to certain calculations for those in transition and for all those whose contribution history begins post 6/4/16.

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

Yes, but that's only 'relevant' in a technical sense and I believe eskbanker was meaning it in the sense that posters typically believe it's an iron rule that applies to everyone, and specifically to them.

I do entirely understand that 35 years is the correct answer for those who've started paying NI since 2016 (who'll mostly start drawing SP in the 2060s) but don't believe I've ever seen any posts from such people on this board!

I agree. I'd be surprised if many younger workers who only started paying NI from 2016 have actually looked at their online SP forecast yet.

eskbanker

I'm wondering if it might be worth restructuring the article to place more prominence on the gov.uk check (plus how to interpret it and what to do about shortfalls), and only then to progress to further detail about how it's worked out for those who wish to validate/calculate it themselves?

squirrelpie

eskbanker said:

I'm wondering if it might be worth restructuring the article to place more prominence on the gov.uk check (plus how to interpret it and what to do about shortfalls), and only then to progress to further detail about how it's worked out for those who wish to validate/calculate it themselves?

Sounds sensible to me. Just put a sentence saying there is further detail later in the article about how it is worked out.