New state pension and COPE deductions

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  • xylophone
    xylophone Posts: 44,408 Forumite
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    Will I still get all my forecasted £155.65 or will that assumed £30.86 COPE be deducted, then whatever my contracted out private pension ends up at hopefully take it back up to £155.65.
    This is what I initially thought would happen.

    Have a look at this. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

    At SPA, you will get your weekly state pension of at least your starting amount ( but up to full new state pension if you continue to contribute as above) both index linked (currently by the triple lock).

    In addition to state pension you have your private pension benefits which could be more or less than the COPE of £30.86 a week.
  • SnowMan
    SnowMan Posts: 3,358 Forumite
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    john-306 wrote: »
    Thanks again, you explain it well.
    Can I just ask a final few questions...
    Will I still get all my forecasted £155.65 or will that assumed £30.86 COPE be deducted, then whatever my contracted out private pension ends up at hopefully take it back up to £155.65.
    This is what I initially thought would happen.
    I'm wishing I had never contracted out now if it's this confusing, (well to me it is).
    You will get all your forecasted £155.65pw in state pension (provided you get those 4 post April 2016 Qualifying Years).

    And then you have your contracted-out private pension pot, wahtever that provides, on top.
    I came, I saw, I melted
  • john-306
    john-306 Posts: 722 Forumite
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    SnowMan wrote: »
    You will get all your forecasted £155.65pw in state pension (provided you get those 4 post April 2016 Qualifying Years).

    And then you have your contracted-out private pension pot, wahtever that provides, on top.


    That's clear enough thank you.
    Looking like contracting out was not an error.
  • GunJack
    GunJack Posts: 11,673 Forumite
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    john-306 wrote: »
    That's clear enough thank you.
    Looking like contracting out was not an error.

    Absolutely not :)
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • downshifter98
    downshifter98 Posts: 383 Forumite
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    Sorry to jump in. I just want to check I'm getting this right. I have 30 years of contributions but my cope is £43.97 so I think on the new basis my total is currently £155.65 divided by 35 and times 30 (£133.41) less the cope (£43.97) = £89.44. Wheras on the old basis I had £119 plus a little additional state pension (£12) =£131 therefore my starting amount is based on the old basis of £131 and this means that its only worth buying extra years (I'm not at work) for post 2016 years?
  • SnowMan
    SnowMan Posts: 3,358 Forumite
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    downshifter98 wrote: »
    Sorry to jump in. I just want to check I'm getting this right. I have 30 years of contributions but my cope is £43.97 so I think on the new basis my total is currently £155.65 divided by 35 and times 30 (£133.41) less the cope (£43.97) = £89.44. Wheras on the old basis I had £119 plus a little additional state pension (£12) =£131 therefore my starting amount is based on the old basis of £131 and this means that its only worth buying extra years (I'm not at work) for post 2016 years?
    That's absolutely correct.

    Even if you were able to buy 5 missing pre April 2016 years your new basis calculation would only increase to £111.68pw (=155.65 - 43.97). And so the old basis calculation of £131pw (which is already maximised by you having 30 years) still bites.

    So post 2016 Qualifying Years are the way to increase your state pension.
    I came, I saw, I melted
  • alan_lablover
    alan_lablover Posts: 2 Newbie
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    Please be gentle, Im not good at this sort of stuff..
    Ive just been on my State Pension forecast and it states my forecast is £159.55 pw. It states
    'You need to continue to contribute Nat Ins to reach your forecast- estimate based on your Nat Ins record up to 5th April 2017 £145.68 a week'
    'Forecast if you contribute another 4 years before April 2028 £159.55 a week'

    My COPE figure is £71.54
    So am I right to assume if I pay my Nat Ins for a further 4 years ( which I will easily) I will get my full amount of £159.55 when I retire, or does the £71.54 get deducted from this amount to leave me getting £88.01 when I retire. Yep Im a bit slow so please be kind. You help is greatly appreciated.
    Thank you all.
    Regards
    Alan
  • hyubh
    hyubh Posts: 3,531 Forumite
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    alan_lablover wrote: »
    'You need to continue to contribute Nat Ins to reach your forecast- estimate based on your Nat Ins record up to 5th April 2017 £145.68 a week'
    'Forecast if you contribute another 4 years before April 2028 £159.55 a week'

    My COPE figure is £71.54
    So am I right to assume if I pay my Nat Ins for a further 4 years ( which I will easily) I will get my full amount of £159.55 when I retire,

    Yes
    or does the £71.54 get deducted from this amount

    No, it's solely to do with your starting amount when the new system came in.
  • alan_lablover
    alan_lablover Posts: 2 Newbie
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    Thank you. Big weight lifted. Very much appreciated.
    Have a nice evening. Regards
    Alan
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    You should also be expecting a company pension of at least £71.54/week (more than likely a lot more than this) in addition to the £159.55.
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