Help from you clever people with pension forcast

[Deleted User]

Hi, I’m just having a panic about the advice to check pension forecast and the rush to fill any gaps in NI before April this year. I’ve just looked online and I’m forcast to get pension in 2033 (I’m 56) and it would be £185.15. It says I have 31 full years of NI, 10 non full years and if I pay 4 more years I will get £185.15. Most of the non full years go back a long way and cover me going to college . But there are 2 years I didn’t pay full years in 2006-7 and 2007-8 and I would have to pay £800 ish per year to get them back. My question is, I have 10 years left of working and paying contributions - as long as I do this, will I get the £185.15 forcast? I could possibly scrape together the £1,600 ish , although it would be a struggle, but is it worth it for me? Thank you in advance for anyone who can understand and help with this

p00hsticks

In your case it's not worth filling any gaps - just stop panicking, carry on working and keep an eye on your forecast from time time.

molerat

If it clearly states that you will get the £185.15 by "contributing 4 more years before April 2033" then I see no point in buying full priced back years.  If you are working and getting contributions then you would be paying twice. You have 10 years to get the necessary 4 years.  What is your amount up to April 2022 ?

[Deleted User]

Thank you so much Molerat and poohsticks. It says my amount up to April 2022 is £166.66 and ‘forecast if you contribute another 4 years before 5th April 2033 £185.15’.
It also says ‘like most people you were contracted out of part of the state pension’. I have no idea what this means and if that changes the overall forecast ( in big bold numbers at the top) that my forecast is £185.15 in 2033?

molerat

Deleted_User said:

Thank you so much Molerat and poohsticks. It says my amount up to April 2022 is £166.66 and ‘forecast if you contribute another 4 years before 5th April 2033 £185.15’.
It also says ‘like most people you were contracted out of part of the state pension’. I have no idea what this means and if that changes the overall forecast ( in big bold numbers at the top) that my forecast is £185.15 in 2033?

In that statement there is a click link which will give you the COPE amount.  That is the deduction that was made from your new scheme pension amount at 2016.  You then received the higher of the old or new calculations, the old already having a contracted out deduction in it.  It makes no difference to what you will receive, what you see is what you get.

[Deleted User]

Thank you so much for explaining it in terms I can understand, I really appreciate your help.

Dazed_and_C0nfused

Deleted_User said:

Thank you so much Molerat and poohsticks. It says my amount up to April 2022 is £166.66 and ‘forecast if you contribute another 4 years before 5th April 2033 £185.15’.
It also says ‘like most people you were contracted out of part of the state pension’. I have no idea what this means and if that changes the overall forecast ( in big bold numbers at the top) that my forecast is £185.15 in 2033?

Should anything change with your plans then remember the first 3 years will each add £5.29/week, taking you to £182.53.

The fourth year just adds the final £2.62.

[Deleted User]

Thanks D&C, I have no idea how you know that but am grateful that you do! I thought I might be reading the forecast wrong or there was some caveat I was missing somewhere. I can’t believe I have got to this age and am of (fairly) sound mind and yet still panic when faced with a set of numbers! 

Dazed_and_C0nfused

Deleted_User said:

Thanks D&C, I have no idea how you know that but am grateful that you do! I thought I might be reading the forecast wrong or there was some caveat I was missing somewhere. I can’t believe I have got to this age and am of (fairly) sound mind and yet still panic when faced with a set of numbers! 

Your (current) starting point is £166.66.

Each post 2016 year adds £5.29/week (at current year rates) but in your situation you cannot exceed £185.15.

So 3 x £5.29 = £15.87.  Added to your £166.66 it takes you to £182.53.

In theory a fourth year adds another £5.29 but as you cannot exceed £185.15 it will only add the final £2.62 (£182.52 + £2.62 = £185.15).

[Deleted User]

Dazed_and_C0nfused said:

Deleted_User said:

Thanks D&C, I have no idea how you know that but am grateful that you do! I thought I might be reading the forecast wrong or there was some caveat I was missing somewhere. I can’t believe I have got to this age and am of (fairly) sound mind and yet still panic when faced with a set of numbers! 

Your (current) starting point is £166.66.

Each post 2016 year adds £5.29/week (at current year rates) but in your situation you cannot exceed £185.15.

So 3 x £5.29 = £15.87.  Added to your £166.66 it takes you to £182.53.

In theory a fourth year adds another £5.29 but as you cannot exceed £185.15 it will only add the final £2.62 (£182.52 + £2.62 = £185.15).

Amazing, thank you. Just one more quick question - as we are less than a couple of months away from April - will that be another year crossed off and I’ll only have 3 left? 

Dazed_and_C0nfused

If you're working and earned enough yes.

If you check your forecast again in June you should have a couple of updates.

Your forecast will have had another year added and the annual inflation increase will be incorporated.

So the amount you've accrued should have crept over £189 with a forecast of £203.85.