State Pension Forecast question

[DanH]

At 49 and having just been made redundant, I have checked my state pension forecast to weigh up my future work options.

It says:

You can get your State Pension on xxxx 2041​

Your forecast is £203.85 a week, £886.38 a month, £10,636.60 a year

and then

£203.85 is the most you can get​

You cannot improve your forecast any more.

If I look at my NI contributions it says:

• 32 years of full contributions
• 18 years to contribute before 5 April 2041

As I'm thinking of not doing full time work and getting a part time 10k a year type job, do I need to be thinking about contributing more or is it as I read it, that I've paid enough NI into the system so far? I keep seeing mention of 35 years of contributions for the 'new' State Pension which has made me think I may need to contribute three more years i.e. a higher paying job to reach the threshold for NI payments.

Thanks

Dan

 

[DefinitelyMaybeUK]

is it as I read it, that I've paid enough NI into the system so far?

That is my understanding too, as you have the key phrase "You cannot improve your forecast any more.", but keen to hear otherwise

It would be recommended to contact the pensions service to confirm, as I recall some past issues with the calculations if you've ever been "contracted out":

Contact the Pension Service

Contact the Pension Service about State Pension eligibility, claims, payments and complaints, and to update your details (such as your address or bank details)

www.gov.uk

 

[DanH]

That is my understanding too, as you have the key phrase "You cannot improve your forecast any more.", but keen to hear otherwise

It would be recommended to contact the pensions service to confirm, as I recall some past issues with the calculations if you've ever been "contracted out":

Contact the Pension Service

Contact the Pension Service about State Pension eligibility, claims, payments and complaints, and to update your details (such as your address or bank details)

www.gov.uk

Yes, it's somewhat irksome when all the pointers are to that forecast for explicit checking yet I'm left not totally sure....

 

[DWS]

£10k a year on PAYE will still count as a qualifying year towards your pension

 

[DanH]

£10k a year on PAYE will still count as a qualifying year towards your pension

Thanks, isn't that under the threshold for NI contributions though? I'm a bit green with this and trying to get unequivocal information from the forecast is proving difficult...or I'm reading it wrong!

 

[DWS]

You don’t need to pay N/I to get a qualifying year as long as you work the whole year on PAYE and earn more than the LEL which is £6396 then it counts

 

[DanH]

You don’t need to pay N/I to get a qualifying year as long as you work the whole year on PAYE and earn more than the LEL which is £6396 then it counts

Thanks, I did not know that...