State Pension Forecast
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Does anyone else find the Gov.UK State Pension Forecast totally confusing.
My wife (an ex Teacher who retired at 60 and stopped all teaching/jobs age 62) is due to get her state pension age 65. year 5 months next year. She went to gov.uk to get a State Pension Forecast.
This says:-
1. Her forecast at State Retirement Age is £142.79/week, but
2. Based on her current NI record she will only get £133.40/week unless she continues to pay NI (but she doesnt work)
3. If she pays for NI shortfall she can increase this to £147.49/week.
However when you dig deeper into her NI record it says she has 42 years of full contributions and also 4 years when the contribution was not full.
I'm aware that the Teachers Pension Scheme, similar to many Public Sector schemes, was contracted out of the 2nd State Pension for many years which presumably is the reason for the reduction and the NI shortfall, however I do find the statement on the gov.uk web site confusing.
Rather than say she had 42 years of full contributions why don't they break it down further to say (a) the number of years of full NI contributions(contracted out), and (b) the number of years of full NI contributions (contracted in)
Also to advise what she needs to pay to get an increased amount if she doesn't work until State Retirement Age.
I suppose she will need to speak to someone on the NI helpdesk to get the real facts - but what a wasted opportunity to give useful info via the gov.uk website.
Whats the general view about paying for an increase in pension from £133.40 to £147.49/week? Is this good value?
My wife (an ex Teacher who retired at 60 and stopped all teaching/jobs age 62) is due to get her state pension age 65. year 5 months next year. She went to gov.uk to get a State Pension Forecast.
This says:-
1. Her forecast at State Retirement Age is £142.79/week, but
2. Based on her current NI record she will only get £133.40/week unless she continues to pay NI (but she doesnt work)
3. If she pays for NI shortfall she can increase this to £147.49/week.
However when you dig deeper into her NI record it says she has 42 years of full contributions and also 4 years when the contribution was not full.
I'm aware that the Teachers Pension Scheme, similar to many Public Sector schemes, was contracted out of the 2nd State Pension for many years which presumably is the reason for the reduction and the NI shortfall, however I do find the statement on the gov.uk web site confusing.
Rather than say she had 42 years of full contributions why don't they break it down further to say (a) the number of years of full NI contributions(contracted out), and (b) the number of years of full NI contributions (contracted in)
Also to advise what she needs to pay to get an increased amount if she doesn't work until State Retirement Age.
I suppose she will need to speak to someone on the NI helpdesk to get the real facts - but what a wasted opportunity to give useful info via the gov.uk website.
Whats the general view about paying for an increase in pension from £133.40 to £147.49/week? Is this good value?
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Comments
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Rather than say she had 42 years of full contributions why don't they break it down further to say (a) the number of years of full NI contributions(contracted out), and (b) the number of years of full NI contributions (contracted in)
Also to advise what she needs to pay to get an increased amount if she doesn't work until State Retirement Age.
Whats the general view about paying for an increase in pension from £133.40 to £147.49/week? Is this good value?
There's a limit to how much information any website can provide - and more to the point, how much info the majority of people actually absorb. The website gives all the information generally needed, particularly if you follow through on the various links. If you've not yet done so, you might find https://www.gov.uk/new-state-pension helps to fill in your grasp of this fiendishly complex area - in particular https://www.gov.uk/new-state-pension/your-national-insurance-record-and-your-state-pension
Good value to buy extra pension? If you can afford it, yes. See https://www.gov.uk/voluntary-national-insurance-contributions/rates0 -
So you pay voluntary contributions for any years after 2016. Pre 2016 years will not increase the pension.
Not that the tax year in which you reach SPa is never a qualifying year so any contributions for this part year are also pointless.0 -
Thanks for the advice - worth paying the voluntary contributions I think0
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Thanks for the advice - worth paying the voluntary contributions I think
This is a very useful guide to the whole business
https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf0 -
Is there a time limit for paying the additional contributions ? I'm 56 now and retired with 4 years "shortfall". I'd rather wait a year before SPA before committing !!!!!!!0
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[FONT=Verdana, sans-serif]She need to pay for the following missing years:[/FONT]
[FONT=Verdana, sans-serif]2016/17 = £733.20[/FONT]
[FONT=Verdana, sans-serif]2017/18 = £741.00[/FONT]
[FONT=Verdana, sans-serif]2018/19 = £761.80[/FONT]
[FONT=Verdana, sans-serif]Very good value.[/FONT]0 -
You can only top up the past 6 years. Costs will stay at the historical rate for 2 years then increase to the current year price.SwanseaVillan wrote: »Is there a time limit for paying the additional contributions ? I'm 56 now and retired with 4 years "shortfall". I'd rather wait a year before SPA before committing !!!!!!!0
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