State Pension forecast vs actual payment

SuzyD1

I am due to start getting my state pension next Feb. The forecast amount is £12695.05 per year. I have received the letter advising the amount I will be paid and that is £973.20 every 4 weeks. So 13x 973.20 comes to £12651.60 a shortage of £43.45. Can anyone explain why there is a difference? Thank you

fwor

It's probably because there are not an exact number of weeks in a year. 13 x 4 x 7 comes to 364 days. If you account for one extra day, plus one extra day in each leap year, the difference is about £43?

onthemend

Hi, I think you have to include for leap years. So £973.20 / 28 days = £34.757143 per day.  x 365.25 days/year = £12695.05.

Dazed_and_C0nfused

SuzyD1 said:

I am due to start getting my state pension next Feb. The forecast amount is £12695.05 per year. I have received the letter advising the amount I will be paid and that is £973.20 every 4 weeks. So 13x 973.20 comes to £12651.60 a shortage of £43.45. Can anyone explain why there is a difference? Thank you

No idea what an annual figure is ever shown as you don't get it annually.

You get a weekly figure.

SuzyD1

Thank you all, I was feeling cheated 🤣

QrizB

Dazed_and_C0nfused said:

SuzyD1 said:

I am due to start getting my state pension next Feb. The forecast amount is £12695.05 per year. I have received the letter advising the amount I will be paid and that is £973.20 every 4 weeks. So 13x 973.20 comes to £12651.60 a shortage of £43.45. Can anyone explain why there is a difference? Thank you

No idea what an annual figure is ever shown as you don't get it annually.

You get a weekly figure.

The "check state pension" forecast gives an annual figure.

https://www.gov.uk/check-state-pension

Eg my forecast from last year:

jem16

SuzyD1 said:

I am due to start getting my state pension next Feb. The forecast amount is £12695.05 per year. I have received the letter advising the amount I will be paid and that is £973.20 every 4 weeks. So 13x 973.20 comes to £12651.60 a shortage of £43.45. Can anyone explain why there is a difference? Thank you

The monthly and annual figures are purely notional - they don't exist in real life.

Concentrate on the weekly figure which is £243.30 as that's the only real figure.

The rest is worked out like this;

£243.30/7 to give daily rate of £34.76

£34.76 times 365.25 (takes account of leap years) gives £12,695.05pa

£12,695.05/12 = £1057.92pm.

Dazed_and_C0nfused

QrizB said:

Dazed_and_C0nfused said:

SuzyD1 said:

I am due to start getting my state pension next Feb. The forecast amount is £12695.05 per year. I have received the letter advising the amount I will be paid and that is £973.20 every 4 weeks. So 13x 973.20 comes to £12651.60 a shortage of £43.45. Can anyone explain why there is a difference? Thank you

No idea what an annual figure is ever shown as you don't get it annually.

You get a weekly figure.

The "check state pension" forecast gives an annual figure.

https://www.gov.uk/check-state-pension

Eg my forecast from last year:

Sorry, it was meant say no idea why it's shown

molerat

Working people see their pay as weekly, monthly and annually so it will be as a comparison to what they are used to.

bjorn_toby_wilde

molerat said:

Working people see their pay as weekly, monthly and annually so it will be as a comparison to what they are used to.

Which is why I find it odd that the state pension is paid every four weeks (and I know you can opt for weekly before the pedants start typing).

I’ve been employed in jobs that were paid  weekly or monthly but I can’t think of any example of a job with a four weekly pay cycle.  Why is it set up like that?

I’m sure there’s a good reason (actually it’s a government department so I’m not sure there will be a good reason!).

jem16

bjorn_toby_wilde said:

molerat said:

Working people see their pay as weekly, monthly and annually so it will be as a comparison to what they are used to.

Which is why I find it odd that the state pension is paid every four weeks (and I know you can opt for weekly before the pedants start typing).

I’ve been employed in jobs that were paid  weekly or monthly but I can’t think of any example of a job with a four weekly pay cycle.  Why is it set up like that?

I’m sure there’s a good reason (actually it’s a government department so I’m not sure there will be a good reason!).

I was paid 4 weekly. It was quite common. 

However with respect to the state pension, like most benefits it’s a weekly benefit which is why payments are in multiples of weeks.