HMRC pension forecast tool wrong

DRS1

The version I read said something similar - like it took 4 years to fix the problem. But then it has a figure of 800,000 people "still" affected. Very unclear. Either the problem is fixed or it isn't.

@sausage_time if your forecast says you qualify for the full SP and has a record of you being contracted out then I would not worry about it.

I am not quite sure what you mean by this

"My contracted out payments were lumped into my defined contribution scheme (subsequently transferred) and I cannot see any way a value can be attached to this."

I contracted out using a personal pension scheme and when it came to it I used the value built up in there to buy an annuity. Do you mean that the amount of annuity I was able to buy with that value is not the same as the COPE amount (or the COD amount)? If so then undoubtedly that is true but those figures are not looking at what the value of your DC pension is they are looking at what impact your contracting out had on your Additional State Pension (which is the salary related bit that was stuck on top of the old Basic State Pension). Those figures then just played a role in working out what your start point was for the New State Pension in 2016. That calculation gave you a figure for state pension accrued up to 2016 as the better of two figures. Your NICs paid or credited since 2016 have then built on that start figure until you get to the maximum. Some people with very high start figures under the old system could be over the new maximum.

I suspect that the article may be saying that for some people the start figure was calculated incorrectly (using the wrong COD or COPE figures). That might mean that the forecast says you have hit the maximum earlier than is in fact the case. And then you don't top up your NICs when you should.

Of course I could be completely wrong.

sausage_time

You answered my question @DRS1. I have a couple of years to go, and will keep an eye on my state pension estimate - well, once a year anyway - in case there are lurking bugs in the calculation on that HMRC page. Thanks everyone!

WH69

I see the HMRC pension forecast tool now has the following banner as of today…

SnowMan

https://forums.moneysavingexpert.com/discussion/comment/81877341#Comment_81877341

'Further improve the accuracy' that's a very euphemistic way of putting it! 😆

p00hsticks

COPE doesn't affect your SP forecast?

Yes and No.

As previous posters have pointed out, any COPE isn't taken away form the forecast figure shown.

However, if you started your working life prior to 2016 it will have affected what that figure is, and therefore how many years you might need ot reach the maximum,

sausage_time

https://forums.moneysavingexpert.com/discussion/comment/81877341#Comment_81877341

Has anyone spotted any "accuracy improvements" following the system update yesterday? No change for me which is sightly reassuring.

intalex

Mine seems to have remained the same, which is as expected because no quirks in my history…