Pension Forecast

By: EconomyWatch   Date: 21 September 2009

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A state pension forecast provides one the estimate of the basic and state pension based on his/her national insurance contribution. It also estimates the amount one is entitled to from state pension. A pension forecast can help put the money one has on retirement into perspective, and compute his/her likely future expenditure. Individuals who take time to raise a family may find that they have not built up the required years to be entitled to state pension; which is why a pension forecast is vital.

 

Often, people put pension planning on the back burner. Pension forecasts allow employees to assess whether they are on track with their pensions, which combines both state and employer pensions.

 

An additional state pension, also known as State Earnings Related Pension Scheme (SERPS), is a part of an individual’s state pension, depending on his/her income. In the case of SERPS, the pension forecast will tell, in current money terms, the amount of state pension:

·        that one has earned already

·        that one can expect at state pension age, based on his/her earnings

 

In addition, pension forecasts also tell one the amount of Graduated Retirement Benefits one has and their worth. This scheme was in operation between 1961 and 1975.

 

Getting a Pension Forecast 

One can get a state pension forecast if he/she is more than 4 months away from the state pension age when the application is processed. If one does not have any pension claim pack, s/he needs to get in touch with his/her social security office.

 

Currently, men at the age of 65 and women at 60 are entitled to state pension from the Department of Work and Pension by filling the BR19 form. One needs to make at least 39 years of National Insurance contribution to qualify for a pension of ₤87.30 per week. From April 6, 2010, the rule changes to 30 years of contribution. The state pension forecast will also change in accordance with earnings, rather than prices.

 

Pension Forecast: Benefits

Some of the benefits of getting a pension forecast include:

·        It is free and there’s accountability in follow up enquiries.

·        It improves pension data and helps in better preparation of the employees’ in reviewing their data and entitlements.

·        Employee satisfaction is immense.

·        There is high potential for scheme growth.

 


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