What does "forecast" mean here?

MikMikandThriceMik

https://forums.moneysavingexpert.com/discussion/comment/81973403#Comment_81973403

Ahha, right, ok.

Thing is, simple folk like me will be thinking I will be getting a tax letter cos the yearly figure is more than personal allowance, whereas calculated yearly figure is still just about below personal allowance.

You'd, or I would at least, think that any figures given are tobe as accurate as possible.

Thank you for you explanation.

NoMore

Take the weekly amount, divide it by 7 to get the daily amount, multiply that by 365.25 (to take account of leap years) to get the yearly amount, divide that by 12 to get the monthly amount.

molerat

And the annual amount for tax purposes, because the state pension is taxable when it is due and not when paid, is 51 weeks at that rate and one week at the previous year rate so the current annual amount is £12536.55 - the annual increase is only applied from the second week in the tax year.

MikMikandThriceMik

https://forums.moneysavingexpert.com/discussion/comment/81973423#Comment_81973423

Jeez, could it get more complicated? Rhetorical Q, no need to answer :)

p00hsticks

A year is more than 52 weeks. The annual calculation is based on 365.25 days worth of pension - 52 weeks plus 1.25 days (to allow for leap years). . If you divide the weekly amount of £241.30 by seven to get a daily amount and multiply by 365.25 you'll get £12,590.69. Dividing that figure by 12 gives a nominal monthly amount of £1049.22 - although as others have said your actual pension will be by default be paid four-weekly (weekly or fortnightly by request), never monthly or annually.

Tax is worked out on when pension entitlement is due, not paid, as is often discussed on this board the figure passed to HMRC by DWP at the end of the year is, I think, one week at the old (start of year) rate and 51 week at the increased rate applicable for th rest of the year

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81973428#Comment_81973428

I know you don't want an answer but there have been posts on here from people who notice that the amount of state pension included in their tax code is one figure and the amount of state pension included in their tax return (pre-populated figure) is a different figure.

LHW99

If the amount were a little larger than the 2026/27 NSP full pension, it would mean having something called a "protected payment"

That arises if you have in the dim and distant past earned a bit of Graduated pension or S2P from a previous job, which would have increased your starting amount in 2016 when the NSP was brought in.

However £241.30 per week is the full rate https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027/proposed-benefit-and-pension-rates-2026-to-2027#state-pension - use the side bar to get to State Pension. The other numbers are because they have to multiply the weekly rate by more than 4 and the annual rate by more than 48 because of the pension being paid 4 weekly, not monthly.

SacredStephan

To the OP you may want to redact the screenshot which shows your exact state pension commencement date.