State Pension Planning
Check your State Pension Entitlement
HMRC has developed a valuable tool to help you plan for your retirement: the State Pension Forecast app. This app allows you to:
- Determine Your State Pension Age: Understand when you can start receiving your State Pension.
- Estimate Your State Pension Amount: See how your contributions will translate into a retirement income.
- View Your Current State Pension Worth: Get an estimate based on your National Insurance (NI) contributions to date.
Identifying & Addressing NI Gaps:
The app helps you identify any gaps in your NI record:
- Gap Year Identification: It clearly shows missing weeks and the number of qualifying years.
- Voluntary Contributions: You can use the app to make voluntary contributions online to fill these gaps.
Important Note:
- Deadline for Past Gaps: You have until 5 April 2025 to make up for NI gaps since 2006/07.
- Contribution Rate: The current Class 3 voluntary NI rate is £15.85 per week (£824.20 per annum), which can significantly increase your State Pension income.
- Future Limitations: From 6 April 2025, you’ll only be able to make voluntary contributions for the past 6 years.
Why This Matters:
The State Pension is a crucial part of many retirement plans. By using this app, you can:
- Maximise your State Pension entitlement.
- Avoid potential income shortfalls in retirement.
- Make informed decisions about your retirement savings.
Contact Us:
We encourage you to explore this valuable resource and discuss your findings with us on 01384 376 964.
This information is for general guidance only and does not constitute financial advice.
Folkes Worton LLP Chartered Accountants
Accounting for the Future