Pension forecast

magic_genie

Have just got off the phone from the Pension service, they're putting a forecast in the post for me.

Just wanted to check I'm up to date really.

Has anyone receieved one of these and had any nasty surprises, I presume it'll show if I owe anything..?

regards
Alex

oldagetraveller

Yes, it should advise how many years qualifying contributions have been made, 40 for a male, I think, to receive full State Pension and what your expected pension will be at retirement age. You will be advised if you need to top up contributions and how to do it. From the age of 60 a man is entiltled to five qualifying years without having to contribute. So if you have say 35 years at age 60 and make no further payments then at 65 the full 40 years will be taken into account.

ReportInvestor

It's 45 years' contributions for a man and 40 for a woman to automatically receive the full basic state pension.

In each case this is based on 90% of a notional working life.

Today's male students who start work at 22 will only get there if plans to increase the retirement age materialise. It also seems discriminatory in favour of women who choose not to have children.

CIS

HI

A man needs 44 yrs and a woman needs 39-44yrs depending on the date of birth

the forecast shouldn't hold any surprises, it will show any missing contrs since 1996 that you are eligible to pay

When you get it , just post if you have any queries (I was an advisor for pension forecasting for 3 yrs)

YorkshireBoy

CIS wrote:

the forecast shouldn't hold any surprises...

Don't just look at the "numbers". These forecasts can throw up one or two nasty surprises! Make sure you read EVERY line, as buried deep within the text of my wife's forecast was the phrase...

"You have told us that you are married. We have no record of this. Please take this forecast to your local Job Centre Plus where you will be instructed on further action necessary"!!!!!!!!

We got married in 1982, but when I spoke to DWP they told me the Government's computers can't talk to each other!! Remind me again, how many BILLIONS did they spend on these systems.

Edit: Are you aware that you can also get an online forecast? The link below will take you to the Pension Service web site...

http://www.thepensionservice.gov.uk/resourcecentre/e-services/home.asp

CIS

not being shown as married causes no problems as they ask you when you reach pension age anyway, a lot of NI records dont have marriages/divoces etc recorded.

DWP computer systems communicate with IR in the main, but its the registry office systems that hold the info and dont communicate it on

magic_genie

Great, thanks everyone, it's much appreciated, Will keep you posted.
kind regards
Alex

EdInvestor

MG

It would be very helpful if you let us know how much you're likely to get extra in SERPS/S2P over the basic state pension (as a %age). One of the problems with SERPS/S2P is that it's linked to earnings so you can't know what it's worth until you get a forecast. For many people retiring now who didn't contract out, it seems to double the size of the state pension.:)

Obviously this is a very good benefit to have as it's index linked to inflation. The basic state pension alone would cost you 80-90k to buy on the open market, so a big SERPS add-on can amount to nearly 200k's worth for a woman who retires at 60 with a full record.

Anyone else who can add to our understanding of the value of SERPS/S2P, please do.