Contracted out but no effect on new state pension forecast?

Sarahspangles

Donkey2303 said:

Dazed_and_C0nfused said:

Donkey2303 said:

molerat said:

Anyone who has 30 pre 2016 years, contracted out or not, cannot fail to be able to get the full new pension if retiring after April 2025.  Simple maths.

So as we go further on that 30 year requirement decreases.

Hi Molerat, can you please explain the maths behind your comment. I need to know where I stand and perhaps a simple math example would help me with that. I have 39 full years pre 2016. I was contracted out but don't know for how long. I had to forcibly return and draw from my private pension since 2019. I am 64 and my state pension kicks in June 2026. My current Pension Forecast shows the full amount. £221.20. Thank You

If you had 30 years under old rules you would have accrued (at least) the old "basic" State Pension of £169.50 (current rate).

Adding 9 post 2016 years at £6.32/year takes you to £226.38 so the 9th year would effectively be capped so you got your personal maximum of £221.20/week.

Adding only 8 post 2016 years takes you to £220.06, just a little short of £221.20.

Hi, Thank but... I was forcibly retired in 2019 so I only have 3 years post 2016. Going back to Molerat's statement I was hoping to discover that having 39 full years pre 2016 would give me the answer I'm looking for.

Is your forecast of £221.20 based on actual contributions or do you need to make up some years to achieve that? Either by buying them or with things like credits for caring responsibility.

Those earlier years established your entitlement to the basic state pension but to achieve the full new state pension amount you have to build on that baseline.

By the way if you want to ensure your question is seems by a specific poster you need to use @ so for example @molerat

Donkey2303

Sarahspangles thank you very much Sarah. I'm new here and still learning. My State Pension Forecast dated 28 May 2024 shows a Forecast of £221.20  a week and further states,
Your Forecast:

• Is not a Guarantee and is based on Current Law
• Does not include any increase due to Inflation
• Is based on your National Insurance record up to 5 April 2023

I have 43 years of Full Years of NI Contributions ranging from
1996 - 1997 and 2018 - 2019.

I was forced to retire 2020 due to disability and have paid no further NI contributions since 2019. I have never received any state benefits of any kind as I'm drawing from my private pension. I reach State Pension Age 2 June 2026.

Can you help me please confirm is that Forecast accurate.

Sarahspangles

Donkey2303 said:

Sarahspangles thank you very much Sarah. I'm new here and still learning. My State Pension Forecast dated 28 May 2024 shows a Forecast of £221.20  a week and further states,
Your Forecast:

• Is not a Guarantee and is based on Current Law
• Does not include any increase due to Inflation
• Is based on your National Insurance record up to 5 April 2023

I have 43 years of Full Years of NI Contributions ranging from
1996 - 1997 and 2018 - 2019.

I was forced to retire 2020 due to disability and have paid no further NI contributions since 2019. I have never received any state benefits of any kind as I'm drawing from my private pension. I reach State Pension Age 2 June 2026.

Can you help me please confirm is that Forecast accurate.

The way HMRC has been reporting the forecasts has changed. It used to be the case that people didn’t realise the forecast was based on additional years they hadn’t yet worked. I don’t know if that is confirmed, because I don’t know what the new updates look like.

I haven’t received a letter but what I see when I log in is

£221.20 is the most you can get
You cannot improve your forecast any more.

I think the ‘You cannot improve’ only appeared when my final year required for the full pension was confirmed.

molerat

Donkey2303 said:

Sarahspangles thank you very much Sarah. I'm new here and still learning. My State Pension Forecast dated 28 May 2024 shows a Forecast of £221.20  a week and further states,
Your Forecast:

• Is not a Guarantee and is based on Current Law
• Does not include any increase due to Inflation
• Is based on your National Insurance record up to 5 April 2023

I have 43 years of Full Years of NI Contributions ranging from
1996 - 1997 and 2018 - 2019.

I was forced to retire 2020 due to disability and have paid no further NI contributions since 2019. I have never received any state benefits of any kind as I'm drawing from my private pension. I reach State Pension Age 2 June 2026.

Can you help me please confirm is that Forecast accurate.

The forecast will be accurate but it will state a lot more than just that.  If that is the one and only amount quoted with no other amounts with caveats, there are often up to 3 different amounts shown, then that is what you have achieved already and there is nothing further you need to do.

Donkey2303

Sarahspanglesmolerat Thank you both so much. That's a real weight off my mind.

Best wishes - David

pinnks

There is a difference between retiring from paid employment and reaching state pension age.  You can pay voluntary NI to top up the 2019 part year and to then add future years up to and including the tax year that ends before you reach state pension age.   

More than 35 pre-2016/17 years can never improve your forecast and others have covered the maximum of 30 issue.

Donkey2303

pinnks but that would appear to be unnecessary in my case.

Carefultoo

molerat said:

Anyone who has 30 pre 2016 years, contracted out or not, cannot fail to be able to get the full new pension if retiring after April 2025.  Simple maths.

So as we go further on that 30 year requirement decreases.

@molerat - this is likely the case if they continue working until retirement (state Pension Age), but not necessarily so otherwise.
I worked 1981-2017 (35 years contracted out, plus 1 year post 2016) - and took voluntary redundancy at that stage. Despite working part-time since for a number of years I still need to make further NI contributions to get a full State Pension in 2029. 

molerat

My comment is 'cannot fail to be able to ". It simply means that with 30 pre 2016 years there's enough post 2016 years to Apr 2025 to make up any shortfall and there are many ways to fill those years. If you have 30 pre 2016 years and at Apr 2024 need more than one more year then you must have some post 2016 gaps.

Puccimike

Hi. I'm responding as a result of ML's show last night.

Thanks for the very informative comments on this post which has enabled me to post a query which hopefully someone can explain to me which HMRC seem unable to. I claimed my state pension back in 2016. I have 39 full years of contributions (per HMRC) and 7 years of "non full" but in there are some contracted out periods as mentioned by @molerat and @Donkey2303, but no way of knowing which years etc. My current weekly pension is £157.37 (£119.97 way back in 2016)

I'm at a loss to know 

a) if the amount I'm receiving is correct

b) if I can make contributions to gain a higher state pension.

Thanks