Strange But Why A Penny Short on Pension Forecast?

invisible_member

Hi,

Nothing too serious but cannot understand why my pension forecast for September 2023 with 35 years contributions would be one penny a week short (£815.36 every 4 weeks)?

Not going to make any financial difference obviously but just a bit bewildered by it, not enough to be on phone for an hour or so to find out, so if anyone has any clues I would be interested?

Many thanks

af1963

Could just be that your starting amount in 2016, plus any years added since then, happen to end up 1p short.  If the starting amounts are essentially random because of different contracted-out deductions, some people will end up a few pence short ( or in your case, 1p ).

p00hsticks

af1963 said:

Could just be that your starting amount in 2016, plus any years added since then, happen to end up 1p short.  If the starting amounts are essentially random because of different contracted-out deductions, some people will end up a few pence short ( or in your case, 1p ).

Yes, mine is currently forecast at 89p short of the maximum (after 44 years contributions) - I could make a voluntary contribution to buy an additional year to take it up to the maximum but don;t think it's worth it. 

Dazed_and_C0nfused

invisible_member said:

Hi,

Nothing too serious but cannot understand why my pension forecast for September 2023 with 35 years contributions would be one penny a week short (£815.36 every 4 weeks)?

Not going to make any financial difference obviously but just a bit bewildered by it, not enough to be on phone for an hour or so to find out, so if anyone has any clues I would be interested?

Many thanks

Do you think having 35 years means you should get the standard new State Pension 🤔

invisible_member

Dazed_and_C0nfused said:

invisible_member said:

Hi,

Nothing too serious but cannot understand why my pension forecast for September 2023 with 35 years contributions would be one penny a week short (£815.36 every 4 weeks)?

Not going to make any financial difference obviously but just a bit bewildered by it, not enough to be on phone for an hour or so to find out, so if anyone has any clues I would be interested?

Many thanks

Do you think having 35 years means you should get the standard new State Pension 🤔

I am certainly not an expert but was to the understanding that 35 years (no contracting out) would give the standard new State Pension to someone in the transitional period....

Audaxer

invisible_member said:

Dazed_and_C0nfused said:

invisible_member said:

Hi,

Nothing too serious but cannot understand why my pension forecast for September 2023 with 35 years contributions would be one penny a week short (£815.36 every 4 weeks)?

Not going to make any financial difference obviously but just a bit bewildered by it, not enough to be on phone for an hour or so to find out, so if anyone has any clues I would be interested?

Many thanks

Do you think having 35 years means you should get the standard new State Pension 🤔

I am certainly not an expert but was to the understanding that 35 years (no contracting out) would give the standard new State Pension to someone in the transitional period....

The 35 year rule only applies to those who started paying NI from 2016. You are in a nice position if you are already at the max after only 35 years NI.

WYSPECIAL

The final year I had to pay to reach the maximum only added 38p.

At least once you're claiming it you'll be able to tell your grand kids that back in the day you had to graft a full year and only earned a penny a year pension for it.

westv

A penny is something I wouldn't have even noticed.

p00hsticks

invisible_member said:

Dazed_and_C0nfused said:

invisible_member said:

Hi,

Nothing too serious but cannot understand why my pension forecast for September 2023 with 35 years contributions would be one penny a week short (£815.36 every 4 weeks)?

Not going to make any financial difference obviously but just a bit bewildered by it, not enough to be on phone for an hour or so to find out, so if anyone has any clues I would be interested?

Many thanks

Do you think having 35 years means you should get the standard new State Pension 🤔

I am certainly not an expert but was to the understanding that 35 years (no contracting out) would give the standard new State Pension to someone in the transitional period....

Yes, I believe that you are correct - if all 35 years were prior to April 2016, and there is no COPE figure at all, then your starting amount as at April 2016 would have been equal to that under the new rules and so the amount would be that of the New State Pension. 

Gimmeaminute

Sounds fine. I am currently 22p short of the maximum with 39 years of contributions and potentially another 12 years to go till I get to 67.