State pension forecast - what can I do about it? 13 March at 10:54AM edited 13 March at 10:59AM in Pensions, annuities & retirement planning 2 replies 158 views

VXman

Given the excellent answer to Spivved1987's question on here I thought I might try my luck with getting info from knowledgeable people on here.

I am early retired (currently aged 60) in reciept of a public service final salary pension.

My current forecast if for £153.79 per week for when I am 67. 

My maximum could be 185.15 if I contribute 6 more years before 2029

I have 36 years of full contributions

My COPE estimate is £76.11

7 years to contribute before 5 April 2029

8 years when I did not contribute enough - 4 years in the 1980's (university) and 3 years working abroad (2017- 2020) and retired since 2020.

I have applied to see if I can pay retrospectively for the 3 years missed while abroad. I should be able to pay these at class 2 rates.
I am also hoping to pay for future years as class 2 as I am doing some invigilating and exam marking.

The question is - how many years will I need to buy to reach my maximum and do I need to do anything before July?

p00hsticks

VXman said:

The question is - how many years will I need to buy to reach my maximum and do I need to do anything before July?

At current rates, each post-2016 year adds £5.29 to your total, up to the maximum £185.15
So five years will take you from £153.79 to £180.24 and a sixth year would add the final £4.91 to reach the maximum.  

All the past years from 2017 onwards will still be available to buy after July, although the price of all but 2021-22 and 2022-23 will rise - not so much of an increase if you can pay for them at Class 2 rates. 

You have enough time going forward to reach the maximum without filling in any past gaps, so if they will be available at Class 2 rates compared with past years at Class 3, they will be the cheaper option. 

molerat

Your forecast tells you how many

My maximum could be 185.15 if I contribute 6 more years before 2029

So if you can pick up those 3 past years at class 2 and 3 going forward also at class 2 you will be home and dry.

As all years to be topped up are 2017-18 and onwards nothing needs to be done before July.  Class 2 for those past years will be increasing after then from £163.80 to £179.40 but if you have an application in that shouldn't be affected.