Check your State Pension forecast, warns financial expert

A leading financial expert is urging people to consider their State Pension forecast when creating a retirement plan, after a survey showed a third of Brits don’t check it before they retire.
 
Mike Jordan (pictured) is the founder of Jordan Financial Management, which has been advising people on financial matters across the West Midlands for more than 25 years. He is now spreading awareness of the practical benefits of checking your State Pension forecast while planning your retirement.
 
Mike said: “The State Pension Age is currently 66 for both men and women, but it is slowly rising. For those born after 5 April 1960, there will be a phased increase in State Pension Age to 68, possibly making the date you can claim your State Pension later than you expect.
 
“No further increases have been announced by the government yet, but as life expectancy increases, we can expect the State Pension Age to increase as well.
 
“It’s worrying that so many people do not check this detail, given that it is quite easy to do. It’s important to stay on top of your forecast to avoid a potential financial shock and make informed retirement plans.
 
"This can be of paramount importance, as the State Pension provides a useful foundation for many retired people. In 2024/25, it amounts to more than £11,500 a year."
 
However, Mike warns that to claim the full amount, you usually will need to have made at least 35 qualifying years of National Insurance (NI) contributions.

People who haven’t made this contribution will usually receive only a portion of this amount – but Mike advises there is an alternative pathway for people with gaps in their NI record.
 
He said: “You may be able to buy additional years, which could boost your retirement income. Typically, a full NI year costs £824, and could add up to £302.64 each year to your pre-tax State Pension income. You can usually only fill in these gaps for the last six tax years.
 
“So, it’s really important to know what your NI record looks like and how it will affect your State Pension forecast.”
 
Additionally, Mike stressed the important role your State Pension may play in your wider financial plan for your retirement.
 
He said: “The money you receive from your State Pension might not be your main source of income in retirement, but it could provide an important foundation for your finances.
 
“By keeping up-to-date with your State Pension forecast and factoring it into financial plans, you might find you’re on track for a more comfortable retirement than you expected – maybe you could withdraw a lump sum and tick off some bucket list items!”
 
Checking your State Pension forecast is easy – you can use an online government tool, the HMRC app or contact the Future Pension Centre to receive the information via post.