New rules
Comments
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Forgive me in advance for having some dumb moments.
Think I need a reboot of the brain here as the numbers aint adding up or I am reading the forecast wrong
I have 35 years of full contributions
11 years to contribute before 5 April 2026 ( at an average 700gbp/pa )
5 years when I did not contribute enough (again 700gbp/pa )
That would make 51yrs of contributions to get the new full SP
The 5 years where you didn't contribute are happy as they are. Forget them completely as they would have made no difference to your pension at all as they were on the old SP and you already have the full old SP.
You are now in the great position that another 8 years of voluntary NICs for years after April 2016 will bring you up to virtually the full new type SP.0 -
The Breakdown of my pension states:
Estimate based on your National Insurance record up to 5 April 2016
£153.58 a week
Forecast if you contribute another year before 5 April 2023
£155.65 a week
£155.65 is the most you can get
It also states:
Summary
38 years of full contributions
7 years to contribute before 5 April 2023
4 years when you did not contribute enough
I was a member of a final salary pension scheme prior to 1996.
If I look at the COPE page it states:
Contracted Out Pension Equivalent (COPE)
Your workplace or personal pension scheme should include an amount of pension which will, in most cases, be equal to the additional State Pension you would have been paid. We call this amount your Contracted Out Pension Equivalent (COPE). Your COPE estimate is shown below.
The COPE amount is paid as part of your other pension schemes, not by the government. The total amount of pension paid by your workplace or personal pension scheme will depend on the scheme and on any investment choices.
Your COPE estimate is £56.75 a week.
So does this mean I will only get paid £98.90 (£155.65 - £56.75) even though I will have paid in for 45 full years by the time I retire?
Yours confusedly,
Rose!
The COPE figure was only used to calculate the starting amount at April 2016 which was the higher of :
Old 30 = £119.30 + additional pension of £34.28 = £153.58
or
New 35 = £155.65 - COPE of £56.75 = £98.900 -
So it looks like you are saying that, as I am working this year, I will receive the full £155.65?
Phew! And thanks!
I was suddenly worrying about reworking my retirement plans!
Rose :-)0 -
The thing to remember is that you haven't got 35 "full years" if you were ever contracted out - most final salary schemes were contracted out - you and your employer paid reduced NI in return for replacing part of the state pension with your employer's pension.
As above a quirk in the new rules is that you're allowed to make up that part of the state pension replaced by the employer's pension, by paying NI between now and state pension age. So you can have your cake and eat it, sort of!0 -
plumduff55 wrote: »Hi, I am completely confused by this as well.
I checked last year before retiring and had 42 years contributions so I thought I would be eligible for the full state pension and retired in October.
After hearing the clip on BBC this morning, I've just checked the pensions website that states I am eligible for £132.37 and would have to contribute till October 2021 (age 66) to receive the full pension.
I am really shocked by this as I am using my savings to supplement my small NHS pension till age 66. I hope someone comes along soon that can explain this.
Sorry for jug hijacking your thread Alfonso but this may explain your situation as well xx
If it was your pension amount how could you be shocked, surely you already knew?
Cheers fj0 -
The thing to remember is that you haven't got 35 "full years" if you were ever contracted out - most final salary schemes were contracted out - you and your employer paid reduced NI in return for replacing part of the state pension with your employer's pension.
As above a quirk in the new rules is that you're allowed to make up that part of the state pension replaced by the employer's pension, by paying NI between now and state pension age. So you can have your cake and eat it, sort of!
Thank you zagfles - you've explained my query re the years contributions paid. I did not realise that I was contracted out but now it makes sense. I'll get in touch with pensions next week and probably pay monthly. Many thanksDebt free - Mortgage free - Work free ( in that order )0 -
bigfreddiel wrote: »What exactly did you check last year?
If it was your pension amount how could you be shocked, surely you already knew?
Cheers fj
Hi, I wrote to pensions and was advised I had 42 years contributions paid. I knew that I needed 35 years contributions and wrongly surmised I would be entitled to the full flat rate of pension when I reached 66. I did not even know I was contracted out. But thanks to zagfles helpful reply I now understand.Debt free - Mortgage free - Work free ( in that order )0 -
Royal London published a booklet online yesterday that may be useful to the posters here. The link takes you to a page where you can download the pdf - Topping up your State Pension.
http://www.royallondon.com/about/media/good-with-your-money/0 -
I thought I'd got a handle on this but the OP has given me some doubts.
My record on the .gov.uk website says 37 years of full contributions, from 16 years old until now (no breaks or missing years). It also says I was contracted out for some of that time (which I knew) and gives a forecast of £156.57 per year, just above the OPs. Cope estimate of £51.15 per month.
I thought this meant I was under the old system, but had enough time when I was contracted in to give me additional pension of £37.27 giving me the sum mentioned.
Can someone confirm or point out where I'm going wrong?0 -
I thought I'd got a handle on this but the OP has given me some doubts.
My record on the .gov.uk website says 37 years of full contributions, from 16 years old until now (no breaks or missing years). It also says I was contracted out for some of that time (which I knew) and gives a forecast of £156.57 per year, just above the OPs. Cope estimate of £51.15 per month.
I thought this meant I was under the old system, but had enough time when I was contracted in to give me additional pension of £37.27 giving me the sum mentioned.
Can someone confirm or point out where I'm going wrong?0
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