Wednesday, May 22, 2019

The UK gov pension calculator says I’m going to be on the breadline!

I previously posted about the importance of using the UK Gov pension calculator to see where you stand in the quagmire of financial ruin/triumph (delete where applicable) after 2016.

Here’s my experience of getting an online pension forecast with the UK’s most eagerly awaited calculator  (sorry Casio).

Number one: it was easy.  I expected to be online for hours, desperately trying to conjure up numbers and dates about my working history.

But in roughly 3 minutes the great pension calculator had come up with a verdict.

Based on a measly few years of national insurance contributions my state pension would roll in at the miserable sum of £22pw, (I invented the figures based on somebody who hadn’t been able to make regular contributions, a la many of my university classmates).

To add insult to injury I would only be due for the payment from 2048.

As I already mentioned, in order to qualify for the full whack, workers have to have paid 35 years of national insurance contributions.

But what I wasn’t aware of until using the pension calculator was that in order to qualify for any payment at all workers must have 10 years of NI payments.

This leaves a lot my university classmates – many of whom left the UK after graduating and still haven’t returned – in dire straits. They already earn too little to make their student loan repayments, and they don’t earn enough to make National Insurance back-payments to the UK….

This means that their UK state pension – if and when they came back – would be a pittance.

Thanks Mr Pension Calculator…..