HMRC Online State Pension Calculator

retiredbanker1

Can anyone advise how accurate this calculator is ?

My indicated pension is about £9 less than the maximum State pension per week.

I'm ok with that having been contracted out for most of my working life and come to the conclusion that paying nearly £3000 to make up the difference is not worthwhile for me.

I have 44 years of NI contributions.

I want to start planning for when I start to receive this just do not want any nasty surprises a few months down the line.

Brie

do you mean the gov.uk state pension website as shown in my signature. VERY accurate in my opinion.

I didn't think that being contracted out made that much difference. I've paid in less than 44 years, have been contracted out for a decade or 2 and get the full pension.

how close are you to SP age??

GrubbyGirl_2

I don't know what calculator you're referring to but you can check your state pension forecast on the Government web site. That will tell you exactly what your pension will be both based on your NI contributions to date and what your pension will be if you continue contributing until your pension age.

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

I worked for the NHS for all my working life so like you was contracted out. I retired at 60 so stopped paying NI, my forecast basically said I needed 49 years NI to get a full pension. I had to buy 5 years. Each year of NI you buy gives you an additional £6.89 a week in state pension. It's a very good investment as you get your money back in around 3 years

GrumpyDil

Where did the £3000 figure come from as that is a lot higher than anything I've ever seen quoted?

Looking at your shortfall I would have thought filling one year would be worthwhile, the second year more borderline?

molerat

The forecast is usually very accurate, the usual error is where contracted out service has not been taken into account. £3K for £9 seems way off. A full year at current rates is £956.80, some past years are cheaper, so under £2K for 2 years to top that up and will pay back gross in 4 years. That is the equivalent of a 25% single lifetime index linked+ annuity - tell me where else you can buy that ?

QrizB

My indicated pension is about £9 less than the maximum State pension per week.

I'm ok with that having been contracted out for most of my working life and come to the conclusion that paying nearly £3000 to make up the difference is not worthwhile for me.

Something's not quite right there; if you're £9 short you should only need two additional years, and years cost just under £1000.

Why do you think you need to buy three years?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6671531/hmrc-online-state-pension-calculator

A single post 2016 year would add £6.89/week (assuming your £9 figure is actually correct) so you have misunderstood something somewhere.

Are you mixing up years you can buy should you wish and years you need to buy to increase your entitlement?

retiredbanker1

https://forums.moneysavingexpert.com/discussion/comment/82026754#Comment_82026754

Approximately £970 or so to fill in 3 years gap in my NI record since I retired

retiredbanker1

Yes I mean the official .gov pension estimate site. Good to know that you think it is accurate.

I qualify for state pension from December 2026.

retiredbanker1

I don’t think I have misunderstood anything.

The weekly state pension currently is £241 a week the estimated amount for me is £232.

I could make the £9 per week up by paying approximately £970 x 3 years to get the maximum. I have paid small amounts to make up 2 years after I retired . The pension site knows that I was contracted out .

I was merely asking whether I could rely on the estimated pension amount

GrubbyGirl_2

You don't need to buy all the years that you have empty. Buying one year will add £6.89 a week. You will get that back in roughly 3 years. If you buy another year it will only give you £2.11 a week so you may not want to bother with that.

Yes the payment is guaranteed