HMRC is urging millions of people to check their State Pension forecast, as they may be able to boost their future payments. Research published in September found that almost seven million adults across the UK have never checked the forecast, which is used to find out how much you could receive in retirement.
The survey of more than 5,200 people revealed that one in eight adults have never used the function - the equivalent of around 6.9 million people. People aged between 45 and 54 were found to be more likely than any other age group to have never checked their forecast.
How the forecast can help
HMRC has now issued a renewed plea for people to use its free app and look for gaps in their National Insurance record. This could reduce or delay your entitlement to the State Pension, as you generally need 10 qualifying years to get any payments and 35 to get the full amount.
Each missing year reduces weekly payments by roughly 1/35th, and the State Pension forecast service allows you to check and pay for said missing years. Any gaps in your National Insurance record can be identified, along with how much it would cost to fill them with voluntary contributions.
It shows your estimated State Pension amount, the exact age and date you can claim it, and projections of how your forecast could change if you continue working or delay claiming. The app also provides access to other information, including tax codes, Pay As You Earn (PAYE) details, employment history and Self Assessment records.
Why checking matters
Myrtle Lloyd, HMRC's Chief Customer Officer, said: "It's never too early, or too late, to check your State Pension forecast. Checking your forecast on the HMRC app takes just a few minutes but can make a real difference to how prepared you feel for the future. Whether retirement is decades away or just around the corner, I'd encourage everyone to check their forecast and see if there's anything they can do now to boost their entitlement later."
Rob Hillock, Head of Personal Financial Planning at Broadstone, said knowing the forecast can help you understand how the State Pension combines with workplace pensions, private savings, and investments. He said: "Understanding your State Pension entitlement is one of the fundamental building blocks of retirement planning, so it is concerning that millions of people remain in the dark about what they are likely to receive. Checking your forecast can highlight any gaps in your National Insurance record while there may still be time to address them. For those in their 40s and 50s in particular, there is still valuable time to make adjustments, but the earlier people understand where they stand, the more options they are likely to have."
