New State Pension Guide
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Here's something that was predictable but unpredicted (by me).
At the time everyone got foundation amounts, I was a good way ahead of the single tier max due to lots of S2P and not much contracting out. But the single tier has risen with inflation while my number was "frozen", so I'm now at max. So all the extra NI I paid has been effectively spirited away, so I'm *really* glad that I contracted out and have a £75k pot thanks to that.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Thanks p00h - one last question if I may. I've read that there's little point in buying any extra years before you need to (i.e. upon the point of claiming SP) just in case you pop it before reaching State Pension age. But are you time limited in how many you can buy? Can I (hypothetically) buy the 6 I need in early 2025, or will it be better to buy them gradually over the next few years?0
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You can buy years up until 6 years after the end of the year. They stay at the in year price for 2 years after the end of the year but increase to the current year price after that.0
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gadgetmind wrote: »Here's something that was predictable but unpredicted (by me).
At the time everyone got foundation amounts, I was a good way ahead of the single tier max due to lots of S2P and not much contracting out. But the single tier has risen with inflation while my number was "frozen", so I'm now at max. So all the extra NI I paid has been effectively spirited away, so I'm *really* glad that I contracted out and have a £75k pot thanks to that.
but your basic newSP will increase by triple lock in line , and your protected amount (above the £155-odd) by a smaller amount (just cpi i think) between now and claiming it, so not frozen, just can't accumulate more in SP, just in your private pension.
Your NI pays for more than just SP, so it's not been "spirited away".........Gettin' There, Wherever There is......
I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple
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but your basic newSP will increase by triple lock in line , and your protected amount (above the £155-odd) by a smaller amount (just cpi i think) between now and claiming it, so not frozen, just can't accumulate more in SP,
True, but my S2P payments count for nothing (but no choice other than to pay) and nor was there any point contracting back in when I did. Still, you can only act based on what you know at the time.just in your private pension.
Nope, maxed out.Your NI pays for more than just SP, so it's not been "spirited away"...
Well, it's going to people other than me, which is the same in my book.
As I can't get any more SP or private pension, it may be time for pipe and slippers!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »True, but my S2P payments count for nothing (but no choice other than to pay) and nor was there any point contracting back in when I did. Still, you can only act based on what you know at the time.
your SERPS/S2P payments built up part of your newSP and your protected amount, and contracting out for everyone ended over the last 5 years.... remember the basic old SP was £119pw, so your S2P built up everything over that
Nope, maxed out.
so you still put £2880 in every year still, or are you over 75?
Well, it's going to people other than me, which is the same in my book.
never needed the NHS, or any state benefits yet?
Unlikely you'll go all your life without either/both, if you've paid NI you're ok, you're covered
As I can't get any more SP or private pension, it may be time for pipe and slippers!
Not trying to be argumentative, just saying..........Gettin' There, Wherever There is......
I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple0 -
so you still put £2880 in every year still, or are you over 75?
No, can't put any more in as at (OK, over thanks to Brexit) current LTA.
As for cash state benefits, I'll get state pension at age 67 but nothing else unless you count bus pass, which will probably be means tested by then along with everything else! NHS you get no matter how little NI you've paid. Me paying more NI now won't get me anything in return so I'm less than enthusiastic to be doing it.Not trying to be argumentative, just saying....
Understood and appreciated.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Firstly apologies for asking this question, it has been asked before, but answered ambiguously in a very complex manner.
Quite simply, I am 64 and will receive state pension next year. I have 45 full qualifying years, during which I was contracted out of Serps until 1996. Possibly 25 years in total. After this I was contracted back in and paid full NI until 2 years ago.
I obtained my state pension forecast which came in at just over £177 per week BUT my COPE estimate for contracting out is £77.
My question simply is, will I receive full forecast £177 or will this be reduced by the COPE estimate, giving me £107 per week (rounded up by the government safety net to £119 per week)
The forum answers vary in complexity and some some yes I will receive the full £177, others say no. The government helpline tell me that my £177 will NOT have a deduction, meaning I will get the full £177 per week,
Non-complex replies to this will be much appreciated!0 -
My question simply is, will I receive full forecast £177 or will this be reduced by the COPE estimate, giving me £107 per week
The COPE figure isn't taken off, it's already been accounted for when determining your starting amount under the new state pension regime.The forum answers vary in complexity and some some yes I will receive the full £177, others say no.
Where so for the latter...? A potential issue is that the forecast will be assuming NI contributions to the year before SPA, but as you're already there, that consideration doesn't apply.0 -
If your forecast is £177 a week, that is what ( increased as below) you will get.
At 6/4/16, two calculations were done.
(1) Old rules
Full Basic State Pension (£119.30) + (SERPS/S2P - Deduction for contracting out).
(2) New rules
(35/35 X £155.65) - COPE.
Your "starting amount" was the higher of the two.
It would seem that although you had a contracted out deduction, you had accrued enough additional pension after your contracting out ended for calculation (1) to be £177.
https://www.gov.uk/new-state-pension/how-its-calculated
You have a full new state pension plus a protected payment - see above link for how it increases in payment.0
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