UK pension forecast

[kuma]

PS You can absolutely continue being “sort of in the past and in the future at the same time”… Did you know it’s actually possible to keep making voluntary NICs even after you’ve started drawing your state pension? It might not apply to everyone, but it’s an interesting quirk of the system that could be helpful depending on your record.

Ah, but Class 3 if you're retired??
so GBP 907.40 per year???

Yeah, Class 3 if not working. GBP923/year at the 2025/6 rates.

Potentially Class 2 if hit the criteria (including 'ordinarily an employed/self-employed immediately before leaving the UK' AND currently 'gainfully employed' which extends to self-employed). So, someone continuing part-time work could continue on Class 2 in theory. Some light tutoring, consultancy, etc might be enough.

Still, even at Class 3, the cumulative gains could be substantial.

A case study is now included on the UK wiki page.

For those not wishing to click, here is an overview:

Conditions

• Helen reaches state pension age (66) in 2025

• She has 25 qualifying years (some through UK-based work; some through voluntary NICs from abroad)

• She resides in Japan

Conclusions

• Over a 20-year retirement, Jane would receive pension benefits totalling £179,595 without making any further contributions

• If she made further voluntary contributions, she would receive £232,618, representing a gain of £53,023

• If she made the contributions at Class 2 rates, she would pay £1,820, so the net gain would be £51,203

• If she made the contributions at Class 3 rates, she would pay £9,230 in total, so the net gain would be £43,793

[allatsea]

A case study is now included on the UK wiki page.

From the case study on the wiki, "Next, we consider her pension if she makes further NICs. In her case, her pension increases until she reaches the full pension after 10 years, then remains static."

Please could you clarify where you got the information from that states someone can pay 10 years of NICs after reaching state pension age.

According to an HMRC Admin post on the HMRC Forums, "nfortunately (sic) you can not pay any future years after your State pension Age."

[kuma]

A case study is now included on the UK wiki page.

From the case study on the wiki, "Next, we consider her pension if she makes further NICs. In her case, her pension increases until she reaches the full pension after 10 years, then remains static."

Please could you clarify where you got the information from that states someone can pay 10 years of NICs after reaching state pension age.

According to an HMRC Admin post on the HMRC Forums, "nfortunately (sic) you can not pay any future years after your State pension Age."

Thanks for the question, and it turns out I was wrong. I am sorry for posting the incorrect information.

I shared a case study implying that it’s possible to continue accruing new qualifying years by paying voluntary NICs after reaching State Pension Age (SPA). This was incorrect.

• You cannot make contributions for years after SPA

• You can, however, pay for past eligible years (within the standard 6-year lookback period) even after reaching SPA

• If those contributions increase your qualifying years, DWP can revise your State Pension amount and backdate the increase to when the contributions were paid

The table and case study I previously included mistakenly modelled a scenario where someone continues adding qualifying years post-66. That scenario isn't possible under current UK rules and guidance from HMRC and DWP.

Apologies for the confusion caused — the incorrect info in the wiki has been removed, and the remaining wording tightened to ensure this point of confusion is properly navigated in the future. Not sure I can delete the inaccurate post in this thread though.

Big thanks to allatsea who raised it, and to all for the collective effort to keep information accurate as we navigate through the labyrinth of international finance. Hopefully my mistake doesn't detract too much from the broader thread.

[jane doe]

Can anyone tell me what I can look foreward to seeing on the State pension forecast page of the UK Government Gateway site, once all my backdated payments are entered and I will actually qualify for a pension? Will it tell me how much I will receive a week, a month, a year?
Also, will there be any way to calculate how much more I will get if I defer?

Or will I have to call the DWP for this information? If so, can someone tell me of the best number for this? I am over pension age, so I do know that the Future Pension Centre won't deal with it, even though I haven't claimed pension yet. I'm sort of in the past and in the future at the same time, it seems.

Just adding this in case it's of use to anyone else trying to get to grips with this for the first time.

In reply to my own questions, I called DWP who told me I need to contact HMRC (who earlier told me to contact DWP). But at least they quoted me an amount over the phone, and they will send me a pension forecast in writing.
You can also report technical problems on Govt Gateway, so I am trying that to see if that gets me anywhere.
I also confirmed that if you defer your pension and the amount goes up, that still happens even if you are a Japan resident (ie in a "frozen" country).
If I understood right, they call the increase when you defer "Extra State Pension".
I am hoping that HMRC will also keep the deferred increase up to date on the page, so I can track the actual amount.
I have a new question for those of you who can see the amount on the Pension Summary - do they show your frozen pension amount? ie are they taking into account the fact you are in Japan?

[jane doe]

... And to add to my last post, when I called HMRC, they told me once again, they couldn't tell me the pension due, and to call the DWP number.
And the DWP, after promising to put in writing how much pension I was able to claim, only sent a summary of my backdated NI contributions, which I can already see on Government Gateway.
The page "Your State Pension summary" continues just to tell me "you reached State Pension age on date/month/year".

Do you think that means Government Gateway will not tell me how much I am entitled to, because I am over state pension age?
What the eff use is that? I am trying to get a confirmation in writing of how much I am due, to check my own calculation. The DWP did give me a figure if I started claiming from the day I reached state pension age, but I was expecting a way to get a definitive calculation of how much I would receive if I deferred to 67, 68, 69 etc. Surely, that is what most people would want a calculator to tell them, using their own confirmed contributions? If I make an error in the calculation and start claiming based on what I expect to get, and it turns out to be different, it's not like I can stop the clock and unclaim.

I'm really not sure what to do next, or who to contact.

[adamu]

I'm really not sure what to do next, or who to contact.

Maybe an official complaint will get things moving.

https://www.gov.uk/government/organisat ... -procedure

[Tkydon]

... And to add to my last post, when I called HMRC, they told me once again, they couldn't tell me the pension due, and to call the DWP number.
And the DWP, after promising to put in writing how much pension I was able to claim, only sent a summary of my backdated NI contributions, which I can already see on Government Gateway.
The page "Your State Pension summary" continues just to tell me "you reached State Pension age on date/month/year".

Do you think that means Government Gateway will not tell me how much I am entitled to, because I am over state pension age?
What the eff use is that? I am trying to get a confirmation in writing of how much I am due, to check my own calculation. The DWP did give me a figure if I started claiming from the day I reached state pension age, but I was expecting a way to get a definitive calculation of how much I would receive if I deferred to 67, 68, 69 etc. Surely, that is what most people would want a calculator to tell them, using their own confirmed contributions? If I make an error in the calculation and start claiming based on what I expect to get, and it turns out to be different, it's not like I can stop the clock and unclaim.

I'm really not sure what to do next, or who to contact.

The actual number is 1% increase per 9 weeks Deferral

This appoximates to 5.8% per year...

https://www.gov.uk/deferring-state-pension/what-you-get

Take the number you were given for Pension if you started claiming from the day you reached state pension age

For every year past State Pension Age, multiply by 1.058 per year

Or (samething)

For a particular year

Take the number you were given for Pension if you started claiming from the day you reached state pension age

Multiply that by 1.058^(Number of years past state pension age)

e.g. multiply by 1.058^(2025-2022)
= 1.058^3
= 1.18428

1 Year Past => 1.058
2 years past = 1.119364
3 years past = 1.184287
4 years past = 1.252975
5 years past = 1.325648
6 years past = 1.402536

I don't know how long you can go on deferring...


The Actual Calculation

Take the number you were given for Pension if you started claiming from the day you reached state pension age

Multiply that by 1.01^(Number of weeks past state pension age / 9)

3 years past => 1.01^(156/9)
= 1.01^17
= 1.184304

5 years past => 1.01^(260/9)
= 1.01^28
= 1.32129

There will be a 53 week year in there somewhere...

[Tkydon]

Open a spreadsheet

Put these column titles

Date of Statutory Retirement - Date of Receiving Pension - No. of 9 Week Blocks - Multiplier

Self Explanatory - Self Explanatory - =INT(DATEDIF(<Cell1>,<Cell2>,"d")/(7*9)) - =1.011^<Cell3>