How to Get a UK State Pension Forecast

A Guide to Assessing How High a State Retirement Pension May be

Nov 15, 2009 Carol Finch

Not all UK individuals qualify for the full State Pension. An early forecast of benefits may be worth getting. This allows the individual to see if they need to top up.

Although most UK consumers will qualify for some form of State Pension, not all will be given the full amount. It may be worth asking for a pension forecast early to see how much will be given and how much this might be. This helps assess if the individual may need to top up their savings or other pension options to give them a comfortable retirement.

What is the State Pension Based on?

This government pension scheme is based on the number of qualifying years that an individual has worked. This is assessed by the National Insurance (NI) contributions they have made out of their salary over the years.

Some individuals may have had salary gaps if they were on benefits, were carers or stopped work to look after children. These individuals are often given "credits" so that they don't miss out on periods when they were not able to work.

What Information Will a State Pension Forecast Give?

This forecast can be useful in many ways. Although primarily designed to estimate a qualifying pension, it may also help the individual better plan their retirement according to their needs. So, it may, for example, show:

An assessment of the pension the individual may qualify for based on current records, SERPS opt-outs/ins and an estimate of future qualifying years.
An estimate of how the pension may increase if they defer their retirement age.
Tips on how to improve the amount that will be paid (if applicable).

This can give a useful snapshot of how much the state will contribute to the retirement income of an individual.

Why is a State Pension Forecast Useful?

Getting a forecast can simply help better plan for retirement. For many, this allows them to make an extra push to save so that they have more income after they retire. A forecast could show, for example:

Gaps in qualifying years that may be mistakes (i.e. the individual has not been credited correctly).
Gaps that may be topped up by adding extra contribution payments.
How they could boost their pension to get more money.

Where to go for a State Pension Forecast

A forecast can be given by:

Phone
Post
Online

The government's Direct Gov website has a page of useful information and links that shows the necessary steps for all of these options.

What to do if the State Pension Falls Short

If an individual cannot boost their state pension any further or thinks that this will not give them enough to meet their financial needs in retirement, then they may want to look at other retirement planning options. Using alternative pensions earlier in life and boosting tax free savings later may be worth looking at.

Source: Direct Gov

The copyright of the article How to Get a UK State Pension Forecast in Retirement Planning is owned by Carol Finch. Permission to republish How to Get a UK State Pension Forecast in print or online must be granted by the author in writing.

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