DWP-sympathetic but unhelpful

6notmyfault6

Question…

If your pension forecast is not a guaranteed figure, how do you know how much you will receive before committing to your pension invitation letter, and does it matter

I have just come off a phone call with the DWP trying to explain my dilemma. At the beginning of last year my forecast was for me to receive the full pension amount, despite the fact that i knew i was short of yearly contributions. Having discussed this with the DWP at the time, i was given five options of topping-up and did so at the beginning of last year according to their recommendation.

Checking my forecast again this year (as i qualify for my pension in April) just to see where the land lays, i see i still have a full pension forecast but another four years to top up if i wanted too. So when i asked what the exact initial figure would be i could not be told, and was told i would only find out when i actually claimed my pension. This now puts me in a bit of a dilemma

Do i bite the bullet and apply for my pension now, accepting whatever figure appears and perhaps top-up again to increase the yearly income or, do i defer for a year in the hope that will adjust the figures in my favour.

Whilst i am not against topping up again, deferring for a year wouldn't be a disaster either but have no idea if it would benificial. As the discussion header suggests the DWP might be sympathetic but are not forthcoming in revealing any detailed information. What sort of service is that, and how does it help people come to a decision

eskbanker

Your current forecast should give you a figure based on contributions (including top-ups) to date (as well as the maximum one if filling NI gaps, which may be different)? This will be expressed in 2025/26 terms, so would be increased next month according to the triple lock figure.

Perhaps worth sharing a screenshot of what you see?

DRS1

Presumably you know what years you topped up last time. So when you check your NI record do they show as FULL? If not get on to HMRC and ask what they did with the money.

If you read the pension forecast it will tell you your projected pension based on the actual contributions made up to April 2025. That is the figure to look at not the figure in the big box at the top. You only get that if you have made all the contributions you need to make.

molerat

Are you sure you were reading your forecast correctly, a large proportion of the queries like this we get here are simply down to people not reading the forecast correctly or not understanding what it states. The big green top box only shows what you could receive, it is the text below it that clarifies what you need to do, if anything, to get to that amount - someone aged 20 with 1 full year will see the full amount in that big green box. Just because years are not full it does not men they need filling. The forecast only states it is not a guarantee because the rules can change and the final calculation could find something amiss in your record but 99.9% get what it says in their forecast. So what precisely does your forecast state, not just the big green box but the text below it ?

Brie

Look at your forecast under the big green box to see if there's something that says "you cannot improve your forecast anymore". So there are no more payments you need to make to cover previous years. Alternatively it may say "you need to continue to contribute".

You said "Do i bite the bullet and apply for my pension now, accepting whatever figure appears and perhaps top-up again to increase the yearly income or, do i defer for a year in the hope that will adjust the figures in my favour."

Does that mean you are at SP age? If so and if you are short of the full pension then topping up is, I believe, your only option.

And if you decide to delay getting your SP do proceed with caution. If you are on any income related benefits these may be affected by delaying your SP and then back dating the start date. This will affect your eligibility for income related benefits you have already received and will likely mean they need to be repaid.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6658845/dwp-sympathetic-but-unhelpful

Deferring for a year would be beneficial in the sense that you would be entitled to an increased State Pension as a result of deferment. Whether that is good value is a different question.

But as others have alluded to is it possible you simple haven't understood what you are reading on your forecast?

Daniel54

As others have said,it seems possible you are misreading your state pension forecast.it is entirely possible to have pre April 2016 contribution gaps which would not increase your state pension.Either you are eligible to receive the full new state pension in April,or you are not .The answer is in your forecast ,and whilst mistakes are made in these forecasts,they are extremely rare.

As the state pension is a contributory welfare benefit it is by definition non contractual and can at any time be changed at the will of Parliament.The DWP caveat is not new and simply reflects this reality.In practical terms,the amounts payable for the forthcoming year have already been passed and the risk you are taking in accepting the offered pension are less than negligible.

if you decide to defer then bear in mind the additional amount increases by CPI and not triple lock.If you do the maths you are likely looking at 17 odd years to get ahead of the game by foregoing a single year of full NSP.

6notmyfault6

Dear colleagues (eskbanker, DRS1, molerat, Brie, dazed-and-confused)

I have taken your advice and re-checked my pension forecast, concentrating on the figure and wording under the big green box, and yes you are right that is the figure to focus on. I wasn't convinced at first as the wording still seemed ambiguous to me, so to double check i looked around the website and found what i think is the definitive answer to a final figure. Contacting the 'Future Pensions Centre' - Tel - 0800 731 0175

This is a very helpful group within the DWP and will give you the exact number of years you qualify for and a definitive figure of your final pension at the time and will tell you whether you need to top up or not.

On the point of topping up, My advice through my recent experience is to address the issue within a year before reaching pensionable age, and if you are in a position to do so, do, as it can make a significant difference to the final figure.

On a final note and not wanting to put people off. I have found that whilst the explanation wording on the DWP website can be ambiguous or hard to understand for the common man/woman, once you get through to a trained operative in the right department, they are extremely helpful and knowledgeable, and i believe they have the public's best interests at heart.

Once again forum colleagues, thank you for your time and expertise