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Original poster

Can my pension forecast be right? Am I reading it wrong?

154 replies

Maggiemargherita · 30/01/2025 22:43

Does this mean I will get a full state pension with 3 more years of contributions? If so I don’t understand why. I’m 44.

Can my pension forecast be right? Am I reading it wrong?
OP posts:
Thread gallery
10
QuantumPanic · 31/01/2025 07:11

NI contribution rules are constantly changing.

When I checked my forecast I was surprised to see that I had contributed before I started work - looked it up and it turns out that from 1975 to 2010 16, 17 and 18-year-olds were given credits if they stayed in full-time education, approved training or apprenticeship.

verycloakanddaggers · 31/01/2025 07:13

cocoloco23 · 31/01/2025 02:16

Why do you have to keep paying into your state pension even after you’ve paid enough to receive the max amount?

It can’t be to prop up other people’s pensions, because everyone is responsible for making enough contributions to their own state pension.

Is the money siphoned off to be used elsewhere?

Show quote history

You have totally misunderstood how National Insurance works. It is not a personal savings account, it is a national insurance scheme.

boxyboxs · 31/01/2025 07:47

When I checked my forecast I was surprised to see that I had contributed before I started work - looked it up and it turns out that from 1975 to 2010 16, 17 and 18-year-olds were given credits if they stayed in full-time education, approved training or apprenticeship.

Mine doesn't show that, I was at school late 90s.

Soontobe60 · 31/01/2025 07:52

Maggiemargherita · 30/01/2025 23:03

To get the full pension, yes he had to plug it last year at 65, he’s turned 66 this week. He worked for a corporate that did something funny with pensions. But still don’t get why he had gaps and why I only need 30 years when he worked 40+

Show quote history

He may well have been contracted out. Many people were, especially if their workplace pension is a final salary defined benefit pension such as teachers, Local government or NHS staff. As a teacher, i actually need 44 years of contributions to get a full state pension!

Choux · 31/01/2025 07:53

boxyboxs · 31/01/2025 07:47

When I checked my forecast I was surprised to see that I had contributed before I started work - looked it up and it turns out that from 1975 to 2010 16, 17 and 18-year-olds were given credits if they stayed in full-time education, approved training or apprenticeship.

Mine doesn't show that, I was at school late 90s.

Maybe the dates listed by PP are wrong but I checked mine the other day and was sure some years of credits had been given for when I was at school / uni in the late 80s. I had more years of full credits than I was expecting.

DefyingGravidy · 31/01/2025 07:55

Viviennemary · 31/01/2025 06:56

What I don't get is this. If OP is 44 and needs 35 years contributions how can it be that she needs only 3 more years contributions from now. Which by my calculations means that she started contributing when she was 12 which can't be right.

There were transitional arrangements in 2016. If you started contributing after then it’s 35 years, but may be more or less than 35 years for people who were already contributing before 2016.

boxyboxs · 31/01/2025 07:56

I have credits at age 17 when I was working around A-levels but not at 16 or 18. Does uni count?

DefyingGravidy · 31/01/2025 07:56

boxyboxs · 31/01/2025 07:56

I have credits at age 17 when I was working around A-levels but not at 16 or 18. Does uni count?

I have credits from sixth form (early 90s) but not uni.

Choux · 31/01/2025 08:00

Re credits for when in school between age 16-18 there's a response here from HMRC Admin 20 posting on the HMRC forum:

"Until 5 April 2010, to protect the NI records of students who stayed in full time education for tax years commencing on or after 6 April 1975, regulation 4 allowed a customer to be credited with Class 3 NICs, which count for State Pension and, up until 6 April 2017, bereavement benefits.
These starting credits could be awarded for the full three tax years containing their 16th, 17th and 18th birthdays, whether or not the young person was in full time education, and were recorded on their National Insurance account.
If your period at University was after 18 years of age , no further credits would be due."

Source: community.hmrc.gov.uk/customerforums/ni/2b89e23c-a067-ee11-a81c-6045bd0bb098

And some of the posters are as feisty as Mumsnetters!

mitogoshigg · 31/01/2025 08:01

Just keep an eye on it, I've got 4 more years still as I attended university and lived overseas for a bit. Then I'll retire, still can't get my pension until 2040 though

Ridingthegravytrain · 31/01/2025 08:03

This may be of interest to some looking to make up years. Valid til this financial year end

Can my pension forecast be right? Am I reading it wrong?
QuantumPanic · 31/01/2025 08:05

boxyboxs · 31/01/2025 07:47

When I checked my forecast I was surprised to see that I had contributed before I started work - looked it up and it turns out that from 1975 to 2010 16, 17 and 18-year-olds were given credits if they stayed in full-time education, approved training or apprenticeship.

Mine doesn't show that, I was at school late 90s.

Interesting. I wonder why?

I have credits for my time in college (but not university).

https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim41210

NIM41210 - Credits: post 1975 credits: Class 3 starting credits - HMRC internal manual - GOV.UK

https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim41210

ByQuaintAzureWasp · 31/01/2025 08:05

Maggiemargherita · 30/01/2025 22:58

My husband recently had to pay 3 years to plug the ni gaps and he worked continuously for 40+ years. Why would this be?

He was in an 'opted out' pension scheme at work. All public sector jobs were 'opted out'.

QuantumPanic · 31/01/2025 08:07

QuantumPanic · 31/01/2025 08:05

Interesting. I wonder why?

I have credits for my time in college (but not university).

https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim41210

Show quote history

Sorry, cross post with @Choux !

rainbowunicorn · 31/01/2025 08:14

cocoloco23 · 31/01/2025 00:52

When you contribute enough, do your state pension contributions stop being deducted automatically?

NI is paid if you have qualifying earnings (currently £242 a week) you don't stop paying when you reach enough years to qualify for state pension. You will continue to pay NI until you reach state pension age.

rainbowunicorn · 31/01/2025 08:16

Maggiemargherita · 31/01/2025 01:06

It’s a big difference isn’t it, it’s obviously not made clear when these changes come about. There must be loads of people my age in the same boat that just think it’s 35 years and that’s that.
and then those that were contracted out, did they have a choice? And are they disadvantaged or is it made up for via private pension? My DH certainly felt hard done by (as would I)

Show quote history

If he was contracted out he would have had the advantage of paying reduced NI for the years he was contracted out. In addition to this he will have the pension to come from the employer scheme that he was paying into at the time.

rainbowunicorn · 31/01/2025 08:18

cocoloco23 · 31/01/2025 02:16

Why do you have to keep paying into your state pension even after you’ve paid enough to receive the max amount?

It can’t be to prop up other people’s pensions, because everyone is responsible for making enough contributions to their own state pension.

Is the money siphoned off to be used elsewhere?

Show quote history

You aren't just paying into a state pension. It isn't a pot of money just for you. The contributions also entitke you to a range of other benefits if needed.

rainbowunicorn · 31/01/2025 08:23

Viviennemary · 31/01/2025 06:56

What I don't get is this. If OP is 44 and needs 35 years contributions how can it be that she needs only 3 more years contributions from now. Which by my calculations means that she started contributing when she was 12 which can't be right.

If you maybe read some of explanations that people have given on the thread or list the government help pages you might understand better.

RosesAndHellebores · 31/01/2025 08:26

I was born in 1960 and my understanding is that I need 35 years of contributions. I presently have about 46 full years but was contracted out from 2004 to 2016 and for some of the years between about 1987 and 1996. I don't have payslips from those years and it's impossible to tell with certainty.

The calculations are complex and the cope figure is no longer quoted and I didn't keep a note of it.

I suspect I will be a couple of years short at 66 but have a substantial private pension so it won't be a deal breaker.

rainbowunicorn · 31/01/2025 08:26

Soontobe60 · 31/01/2025 07:52

He may well have been contracted out. Many people were, especially if their workplace pension is a final salary defined benefit pension such as teachers, Local government or NHS staff. As a teacher, i actually need 44 years of contributions to get a full state pension!

Show quote history

Yes, but you will have benefited from reduced NI contributions for the years you were contracted out as well as a very good employers pension.

rainbowunicorn · 31/01/2025 08:29

RosesAndHellebores · 31/01/2025 08:26

I was born in 1960 and my understanding is that I need 35 years of contributions. I presently have about 46 full years but was contracted out from 2004 to 2016 and for some of the years between about 1987 and 1996. I don't have payslips from those years and it's impossible to tell with certainty.

The calculations are complex and the cope figure is no longer quoted and I didn't keep a note of it.

I suspect I will be a couple of years short at 66 but have a substantial private pension so it won't be a deal breaker.

Have you actually checked your forecast on the government gateway. You can check your NI contributions there as well and itvwill tell you exactly how many years are needed.

Doloresparton · 31/01/2025 08:37

Maggiemargherita · 31/01/2025 01:06

It’s a big difference isn’t it, it’s obviously not made clear when these changes come about. There must be loads of people my age in the same boat that just think it’s 35 years and that’s that.
and then those that were contracted out, did they have a choice? And are they disadvantaged or is it made up for via private pension? My DH certainly felt hard done by (as would I)

Show quote history

If your dh was contracted out that benefitted his private pension because the NI contributions went towards the private pension not the state pension.

SunnyYetRaining · 31/01/2025 08:41

cocoloco23 · 31/01/2025 02:16

Why do you have to keep paying into your state pension even after you’ve paid enough to receive the max amount?

It can’t be to prop up other people’s pensions, because everyone is responsible for making enough contributions to their own state pension.

Is the money siphoned off to be used elsewhere?

Show quote history

You're confusing the state pension with private personal pensions.

There is no such thing as "paying into your state pension". National Insurance is a type of income tax, not a pension contribution. Paying NI for a certain number of years earns you an entitlement to claim benefit from the state pension: you are not paying into a pension pot.

Mindymomo · 31/01/2025 08:41

RosesAndHellebores · 31/01/2025 08:26

I was born in 1960 and my understanding is that I need 35 years of contributions. I presently have about 46 full years but was contracted out from 2004 to 2016 and for some of the years between about 1987 and 1996. I don't have payslips from those years and it's impossible to tell with certainty.

The calculations are complex and the cope figure is no longer quoted and I didn't keep a note of it.

I suspect I will be a couple of years short at 66 but have a substantial private pension so it won't be a deal breaker.

Definitely check your online pension account, I am similar age and contracted out for about 8 years, but as I worked from aged 16 to 58 so it appears I do seem to have enough years paid in. For missing years I thinks it’s about £800 per year, but you will easily get it back if you, hopefully, live a few years after. Also I think it’s 67 when I am eligible for state pension.

boxyboxs · 31/01/2025 08:50

There is no such thing as "paying into your state pension". National Insurance is a type of income tax, not a pension contribution. Paying NI for a certain number of years earns you an entitlement to claim benefit from the state pension: you are not paying into a pension pot.

They need to put this on buses as a lot of people don't understand.