Confirming figures

ossie48

I'm 59 and retired (have been since 2013)

My state pension forecast is £221.20 week
Current estimate £169.88 a week

I have 10 payable gaps.

They said a payment of £6624.80 will get me close to my pension forecast. I understand each payment year = £6.32. So I guess 8 years = £50.56 + £169.88 (current estimate) = £220.44

I have a list of 10 payments on the payable gap years that range from £63.40 part (2013/14) £795.60 / £800.80 and seven of £824.20 but I can't work out what combination of years they've used to reach £6624.80. Do they simply pick a combination to get you as close as possible to your forecast without going over ?

They also said I don't need to make any payments for before the year 2016/17 which kind of confused me as I'd have to include 2015/16 to get me near that figure of £6624.80

Anyway they put me through to HMRC and I got a reference and bank details. I was told this quote will suffice up until next April (so will pay just before then) but just need to confirm how they came to this figure and does it seem accurate. Thanks.

Ayr_Rage

Even though it is not showing yet (and wasn't for me when I topped up a couple of weeks ago) the figure to fill 2023/24 is actually £907.40

Could they have used that in their calculation, using the most recent 8 years?

EDIT : Cracked it @ossie48

£795.60 + £800.80 + (5 x £824.20) + £907.40 = £6624.80

molerat

It is not as simple as filling any empty years.  Pre 2016 years may add £0.00, £5.65 or £6.32 depending on your personal circumstances.

Because your current amount does not divide exactly by £6.32 it means your starting amount was based on old rules so pre 2016 years will only add £5.65 and adding more can change how the whole pre 2016 amount is calculated.  To get £220.44 may need 8 post 2016 years.  

A few more details should shed some light

Tax year you reach SP.

Number of full NI years 15-16 and earlier.

Any COPE amount.  If you have "You've been in a contracted-out pension scheme" on your forecast then click
here https://www.tax.service.gov.uk/check-your-state-pension/account/cope whilst logged into your tax account.

More precise details on years which show not full and prices.

It may be that pre 2016 year would take you to the full amount for £63.40 paying back in 84 weeks, the above details should confirm. And if pre 2016 years are viable then the full amount may be had for £6605.  I do hope that DWP have not fallen back to their old duff info days !

Edit

To get £6624.80 is 2016-17 to 2019-20 (4) at £824.20, 2020-21 at £795.60, 2021-22 at £800.80, 2022-23 at £824.20 and 2023-24 at £907.40

Ayr_Rage

@ossie48 I am not sure that any pre 2016/17 years will actually increase a pension even if they show as payable.

An "expert" will be along to put me in place if I am wrong.

Rodders53

Don't forget.  Your forecast will be expecting you to buy the complete NI years between age 59 (now) and SP age 66/67... 6 or 7 years??  So rather than pay a large lump up front why not buy as you go for the future and just buy any that would then still be missing that are cheap 1 or 2 years only?

May be slightly more expensive to do so with inflation but you could get hit by a bus and never benefit from any SP at all?

Sign on the dole and get the NI credits for the effort of job-seeking   <joke>

ossie48

Many thanks, yes 2023/24 at £907.40 is obviously the answer, I must have missed them saying that even they included the figure.

Rodders53 said:

Don't forget.  Your forecast will be expecting you to buy the complete NI years between age 59 (now) and SP age 66/67... 6 or 7 years??  So rather than pay a large lump up front why not buy as you go for the future and just buy any that would then still be missing that are cheap 1 or 2 years only?

May be slightly more expensive to do so with inflation but you could get hit by a bus and never benefit from any SP at all?

Sign on the dole and get the NI credits for the effort of job-seeking   <joke>

I must admit that idea has crossed my mind (not the dole bit  ) pay as I go type thing rather than a lump sum.
I presume the April 2025 top up urgency thing isn't applicable to me as the figures they're using are all post 2016.

ossie48

molerat said:

Tax year you reach SP.

Number of full NI years 15-16 and earlier.

Any COPE amount.  If you have "You've been in a contracted-out pension scheme" on your forecast then click
here https://www.tax.service.gov.uk/check-your-state-pension/account/cope whilst logged into your tax account.

More precise details on years which show not full and prices.

It may be that pre 2016 year would take you to the full amount for £63.40 paying back in 84 weeks, the above details should confirm. And if pre 2016 years are viable then the full amount may be had for £6605.  I do hope that DWP have not fallen back to their old duff info days !

Edit

To get £6624.80 is 2016-17 to 2019-20 (4) at £824.20, 2020-21 at £795.60, 2021-22 at £800.80, 2022-23 at £824.20 and 2023-24 at £907.40

Hi, sorry yes I was contracted out. I've clicked on that link and it says   'Your COPE estimate is £78.51 a week

This will not affect your State Pension forecast.' There was no mention of this in the tel conversation. Is this still an issue ?

Full NI years up to 15/16 =32

Tax year of SP age is 2032/33

molerat

OK, so it is not a case of you do not need to fill pre 2016 years, you cannot / must not fill pre 2016 years as they would add no value to the pension amount.

The COPE amount was only used in calculating your 2016 starting amount and will not affect your stated amounts.  It is though one of the factors necessary in working out if pre 2016 years are viable.