Understanding your State Pension forecast

If you have received your State Pension forecast and need help with the terms used, this page will help to explain them. If you need further help or have more questions, use the contact details below to find out more.

Additional State Pension

Additional State Pension is an earnings-related pension, paid on top of the basic State Pension. It was originally called the State Earnings Related Pension Scheme (SERPS) and was replaced by the additional State Pension in 2002.

The amount of additional State Pension you may get at your State Pension age could be different to the estimate shown in your forecast.

Who is affected?

You are likely to be affected if you are currently contracted out of the additional State Pension into:

• a personal or stakeholder pension scheme that is contracted out on what is called a defined contribution basis
• a company or occupational pension scheme that is contracted out on what is called a ‘money purchase’ or ‘defined contribution’ basis

From 6 April 2012 you will stop being contracted out if you are in one of these schemes.

How this may affect the estimate of your additional State Pension

It is unlikely to affect the estimate of additional State Pension in your forecast calculated using your National Insurance contributions record to date.

The estimate of the additional State Pension you may get at State Pension age is likely to be affected. It will not include the further amount you may get based on your National Insurance contributions from 6 April 2012 because you will no longer be contracted out.

Pension forecasts will show this change when National Insurance contributions records have been updated.
Find out more about ‘Additional State Pension’ on the following page

Home Responsibilities Protection – what is it?

Home Responsibilities Protection protected your right to State Pension if you were receiving certain benefits and you were caring for one of the following:

• a child
• a person who was sick
• a person who was disabled

Home Responsibilities Protection has been replaced by credits for people reaching State Pension age on or after 6 April 2010.

See ‘Caring and your pension’ to find out more about credits for carers.

See ‘State Pensions for parents’ to find out more about credits for parents.

Spouse or partner’s State Pension entitlements

If your spouse or partner has not reached State Pension age, they should apply for a State Pension forecast or State Pension statement in their own right. If they have already reached State Pension age and do not receive their State Pension they should contact The Pension Service.

Contracting out of the additional State Pension

Contracting out means you have joined a company, stakeholder or personal pension that can replace all, or part, of the additional State Pension.

If there is a contracted out deduction on your forecast you can find out more by contacting HM Revenue Customs (HRMC).

More help understanding your State Pension forecast

If you need further help understanding your forecast there is a guide that you can download.

Contact the Future Pension Centre

If you have further questions about the content of your forecast then contact the Future Pension Centre.

National Insurance

For more information about how National Insurance contributions affect your State Pension forecast see the following page.

More useful links