Pension Forecast Confusion
DailyDaz
Posts: 7 Forumite
Hi.
I have just checked my Wife's pension forecast on the government gateway website as she was keen to find out what she will get in 2024 when she hits retirement age of 66. It says she will receive £146.46 unless she contributes for another 3 years before 5 April 2024 to receive the full £159.55 per week. She has a total of 43 years of contributions of which 6 years had none or not enough contributions due to being unemployed or contracted out. She still has 37 years of full contributions as it says on her statement. My question is why does she have to contribute another 3 years to get her full pension? I thought you needed only 35 years. She no longer works or claims any benefits due to my income.
Thanks.
I have just checked my Wife's pension forecast on the government gateway website as she was keen to find out what she will get in 2024 when she hits retirement age of 66. It says she will receive £146.46 unless she contributes for another 3 years before 5 April 2024 to receive the full £159.55 per week. She has a total of 43 years of contributions of which 6 years had none or not enough contributions due to being unemployed or contracted out. She still has 37 years of full contributions as it says on her statement. My question is why does she have to contribute another 3 years to get her full pension? I thought you needed only 35 years. She no longer works or claims any benefits due to my income.
Thanks.
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Comments
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Because she needs more of the qualifying years to be post-5 April 2016. See https://www.gov.uk/new-state-pension/how-its-calculated0
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Just search this forum for previous replies. This question is asked and answered almost every day.0
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The Government Gateway NI record does not indicate which years you have been contracted out. It shows which years have a full record and which years are incomplete.
In your wifes case she has 37 full years but it is likely that during five of these she was contracted out.
Is there a COPE amount indicated on the pension statement?0 -
Thanks for getting back to me. It says she has a COPE estimate of £18.82 a week.0
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Really! She had 35 qualifying years in 2014.0
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Thanks for getting back to me. It says she has a COPE estimate of £18.82 a week.
Then she has an occupational contracted out pension, of some description, in addition to her State pension.
There's no benefit in paying any missing or part years pre 2016 - but she can pay for a couple of years going forward.
In round figures, voluntary class 3 NI contributions will cost her £750 for an extra £4.50 per State pension for the rest of her life (or £2,250 for £13.50 per week). At first glance, that looks expensive - but it's actually a very good deal - assuming she will be a standard rate tax payer in retirement, she'll break even after just 4 years (3 years if a non tax payer).
I'm just a little older, also retired, and will be taking advantage of this deal myself.0 -
Is your wife currently in receipt of an occupational or private pension?
Or is she due to receive one?0 -
Op, your wife should also be getting, now or in the future, a company pension worth at least £18.82/week although in reality probably much more.
Any you deserve some credit for reading her statement correctly. You would be surprised at the number of posters who think they are going to get the £159.55 not £146.46 irrespective of future contributions.
It says she will receive £146.46 unless she contributes for another 3 years before 5 April 2024 to receive the full £159.55 per week0 -
Silvertabby wrote: »Then she has an occupational contracted out pension, of some description, in addition to her State pension.
There's no benefit in paying any missing or part years pre 2016 - but she can pay for a couple of years going forward.
In round figures, voluntary class 3 NI contributions will cost her £750 for an extra £4.50 per State pension for the rest of her life (or £2,250 for £13.50 per week). At first glance, that looks expensive - but it's actually a very good deal - assuming she will be a standard rate tax payer in retirement, she'll break even after just 4 years (3 years if a non tax payer).
I'm just a little older, also retired, and will be taking advantage of this deal myself.
Although she was contacted out for 2 years, she has never received a statement from whoever she was contacted out with, neither aware of any other private pension, hence the confusion. The Gov statement says she needs to pay a voluntary of £733.20 by 5 April 2023 but may increase after 5 April 2019. I need to find where these contracted out payments went !!!!!0 -
Dazed_and_confused wrote: »Op, your wife should also be getting, now or in the future, a company pension worth at least £18.82/week although in reality probably much more.
Any you deserve some credit for reading her statement correctly. You would be surprised at the number of posters who think they are going to get the £159.55 not £146.46 irrespective of future contributions.
It says she will receive £146.46 unless she contributes for another 3 years before 5 April 2024 to receive the full £159.55 per week
She is not in receipt of any income at all at the moment. Just waiting for pension age to arrive.0
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