State pension forecast and missing years – Should I pay the shortfall?

BFBW

I’m trying to understand my State Pension situation and what happens if I stop working early.

I have 27 full years of National Insurance contributions and two not full years (2017-18 and 2018-19) by this April 2025, and my State Pension forecast currently shows £221.20 per week.

My retirement age is in 2039, but if I wanted to retire early, I’d like to understand how that would affect my pension.

My statement suggests I can pay voluntary contributions for the two missing years, but in the summary, it also says that I cannot improve my forecast any further.

I have a few questions:

   •   If I stop working now, will my pension remain at £221 per week?

   •   What happens if I don’t pay for the shortfall in 2017-18 and 2018-19? Will it make any difference?

   •   Is it worth paying for those two missing years, or would it be a waste of money?

   •   If I wanted to retire early, how would that affect my pension?

Any advice would be greatly appreciated  

Dazed_and_C0nfused

BFBW said:

I’m trying to understand my State Pension situation and what happens if I stop working early.

I have 27 full years of National Insurance contributions and two not full years (2017-18 and 2018-19) by this April 2025, and my State Pension forecast currently shows £221.20 per week.

My retirement age is in 2039, but if I wanted to retire early, I’d like to understand how that would affect my pension.

My statement suggests I can pay voluntary contributions for the two missing years, but in the summary, it also says that I cannot improve my forecast any further.

I have a few questions:

   •   If I stop working now, will my pension remain at £221 per week?

   •   What happens if I don’t pay for the shortfall in 2017-18 and 2018-19? Will it make any difference?

   •   Is it worth paying for those two missing years, or would it be a waste of money?

   •   If I wanted to retire early, how would that affect my pension?

Any advice would be greatly appreciated  

Do you mean you have already accrued £221.20?

Have you read past the big green box?

Sarahspangles

If you’re already seeing these words - exactly these:

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

Then there is no point voluntarily contributing to make up those part-filled years as they won’t increase your State Pension.

The reason for questioning the precise wording is that if you have 26 full years (2024/25 can’t be showing yet) and have achieved a full pension, then I think that’s the fastest accumulation anyone has reported here.

In answer to your other questions, HMRC/DWP can’t take it away and retirement from paid employment won’t affect it, you just wait until you’re nearing state pension age then claim it. 

BFBW

Dazed_and_C0nfused said:

BFBW said:

I’m trying to understand my State Pension situation and what happens if I stop working early.

I have 27 full years of National Insurance contributions and two not full years (2017-18 and 2018-19) by this April 2025, and my State Pension forecast currently shows £221.20 per week.

My retirement age is in 2039, but if I wanted to retire early, I’d like to understand how that would affect my pension.

My statement suggests I can pay voluntary contributions for the two missing years, but in the summary, it also says that I cannot improve my forecast any further.

I have a few questions:

   •   If I stop working now, will my pension remain at £221 per week?

   •   What happens if I don’t pay for the shortfall in 2017-18 and 2018-19? Will it make any difference?

   •   Is it worth paying for those two missing years, or would it be a waste of money?

   •   If I wanted to retire early, how would that affect my pension?

Any advice would be greatly appreciated  

Do you mean you have already accrued £221.20?

Have you read past the big green box?

Sarahspangles said:

If you’re already seeing these words - exactly these:

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

Then there is no point voluntarily contributing to make up those part-filled years as they won’t increase your State Pension.

The reason for questioning the precise wording is that if you have 26 full years (2024/25 can’t be showing yet) and have achieved a full pension, then I think that’s the fastest accumulation anyone has reported here.

In answer to your other questions, HMRC/DWP can’t take it away and retirement from paid employment won’t affect it, you just wait until you’re nearing state pension age then claim it. 

Thanks for all of your help 

JHass

Apologies for needing further clarification on this - I'm in a similar position - I have a small gap showing in my national insurance contributions and want to know if its worth trying to pay it before the deadline - when I go on my pension calculator, it gives me the same message - ie 'You cannot improve your forecast any more' - does this mean i can't improve my forecast without the additional NI payment - or does it mean, regardless of any additional payment I can't improve the forecast (in which case its not worth battling with the NI underpayments service and getting increasingly stressed as the deadline for payment approaches!) - any advice hugely welcome! 

molerat

If it states exactly the same as the previous post then you have already reached the full amount and nothing you do now will change that.