State pension estimate is too generous

My state pension forecast on the government gateway https://www.tax.service.gov.uk/check-your-state-pension/account indicates I've contributed 29 years, but that in just *one* more year (possibly this 6th of April) I'll have qualified for the full £185.15 per week. My wife who is a bit older needs to work 4 more, which will be around 35 years. I know that the old system needed 30 years (I was at around 17-18), but we're now past 2016 and only the new pension applies as I'm just in my late 40s. I can't find *any* reference anywhere as to why I only need to work for 30 years to get a full new pension. https://www.gov.uk/new-state-pension/how-its-calculated is difficult to understand and refers to a "starting amount" in 2016 but what could that have been? It would be nice to know I can stop working in a few years and know that when I get to 67 I'll get the full supplement from the state on top of my savings, and private pensions. Is this in 1 month or 5 years?

Damion, Like most people looking at this issue at the moment, you are covered by the transitional provisions because you have some years under the old rules and some under the new. The calculation under those transitional rules at April 2016 of your "starting amount" (to which you add 1/35 x £new max for each full NI year from 2016/17 onwards) is the higher of: * the amount you would have got at that time under the old rules, so a "basic state pension" based on up to 30 full NI years plus any "additional pension" from the second, earnings-related, state pension, known as SERPS or S2P depending on which year you are looking at. If you were paying into a contracted out work-related pension and paying less NI as a result, the calculation includes a "Contracted out Deduction" to reduce the amount of additional pension. * the amount you would have received at that time had the new rules always applied, including a deduction called COPE (Contracted Out Pension Equivalent) if you were, well, contracted out. Additional pension can amount to more than the basic pension under the old rules depending on your circumstances. So, it is possible for the amount under the old rules to be close to, or exceed, the new state pension max. If this happens, then at April 2016 you would have a starting amount equal to the new state pension max, with the excess being called a "protected payment". At state pension age you then receive both payments. So, with 29 years and, presumably, not being contracted out, it looks as though your starting amount was only 1 year (1/35 x £max) short of the new max, meaning you need only 30 years in total to get the new state pension max. My other half is not quite as fortunate as you but needed only 33 years.

Hi Damion Yates,

When the New State Pension was introduced there were changes made and as part of those changes are there is no longer a blanket approach to the number of year and the amount of state pension paid.
HMRC cannot advise on your state pension entitlement you will have to contact the Department for Works and Pensions (DWP).  The amount of state pension you receive is calculated using the information held on your National Insurance Contributions record.

If you are below pension age you should contact future pension centre on 0800 731 0175

If you are over pension age you should contact the pension service on 0800 731 7898

DWP phone lines are open between 8 and 4

Thank You.

Dear HMRC Admin 20, I really don't think it makes sense for me to add to "the high number of calls their are experiencing" on the (before pension age) number. In fact the recorded message says not to speak to them if I have no gaps*. I merely want to check how it could occur that I'm literally at the max pension, far under the expected time. But somehow my 2yr older wife has a *more* years to work despite essentially identical records albeit with 2 extra contribution years. The simple answer here is if the size of the NI contributions themselves have any affect, my income is high so I've contributed a significant sum to his majesty's government over the years. If it's not this, then there there must be some very weird situation going on where my 23 years of contribs pre-2016 plus 6 after (6 is the same for everyone who worked) vs my wife's 25 years contribs, plus 6 somehow means she needs to work 3 more years!? My wife has almost identical pension history (including missing 3 years at uni), but has 31 years where I have 29 as she's 2 years older. Yet she has to work for 4 more years and I only 1 (or maybe I max out after the 6th of April) *I don't think I can correct the gaps in 1992-4 when I was in full time uni education as this is simply too long ago (nobody at the time told me I had to do anything to inform hmrc). Gary: Thank you for a detailed response, but that's roughly a repeat of what the government webpages state. The numbers however don't seem to make sense to me unless some people's high contributions, decreased the years you need to contribute? Otherwise the timing of being a smidgen older means a determent to duration of work needed before reaching £185 p/w

Damion, It is the calculation of your starting amount that can give rise to what you describe. If you were not contracted out of the second state pension, then you can have a significant amount of "additional pension" in your starting amount. I think the additional pension max is higher than the basic pension but as it is NI years and earnings-related DWP would have to tell you what it is. But, the fact is that people can be moved across to the new system on, or in excess of, the new max based on fewer than 30 NI years. If, your wife was contracted out, or simply has a different amount of additional pension, then her starting amount can be significantly different to yours. If you are minded, you can work backwards to your starting amount but deducting £5.29 for each full NI year 2016/17 to 2021/22 from your forecast to 5 April 2022. That may help you rationalise the numbers. Otherwise you'll have to chat with DWP when things quieten down...

Thank you, I plan to phone the number HMRC Admin 20 provided, a few days after the new tax year. "the additional pension max is higher than the basic pension but as it is NI years and earnings-related" <-- The last part of your sentence here the key part, if it's earnings related then everything can make sense. I don't believe my wife could have been contracted out. She's simply offset 2 year's earlier but otherwise worked the same as me albeit on a lower income.