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  • FIRST POST
    • ossie48
    • By ossie48 18th Oct 17, 11:28 AM
    • 97Posts
    • 46Thanks
    ossie48
    State pension forecast
    • #1
    • 18th Oct 17, 11:28 AM
    State pension forecast 18th Oct 17 at 11:28 AM
    Forecast £159.55 a week 32 years of full contributions, 16 years to contribute, 3 years when you did not contribute enough.

    Estimate based on NI record up to April 2016 £145.88 a week

    You can make up the shortfall
    Pay a voluntary contribution of £733.20 by 5 April 2023. This shortfall may increase after 5 April 2019.

    As I'm early retired and made no contributions for the last few years is the 'voluntary contribution' above an accrual or would I have to pay all the voluntary contributions that are listed year by year. In other words 2014/15 was £722, previous year £54. Tried ringing the help line but cant get a reply.

    Cheers
Page 3
    • newatc
    • By newatc 21st Nov 17, 4:30 PM
    • 166 Posts
    • 186 Thanks
    newatc
    We are in the process of filling gaps in my wife's NHI contribution years. My wife was born in 1954 and the intention is use the gaps from 2006 onwards (where the gap is small because she worked part time). Just got off the phone with the DWP where the lady insisted we could back 6 years. Checked the great Royal London document and that said we could go back to 2006 and then checked the gov. uk which said "You!!!8217;re a man born after 5 April 1951 or a woman born after 5 April 1953
    You have until 5 April 2023 to pay voluntary contributions to make up for gaps between April 2006 and April 2016".

    We are getting new Pension Forecast and then taking it on from there but it does seem the DWP lady was advising incorrectly underlining the need to always double check what you are being told.
    • molerat
    • By molerat 21st Nov 17, 4:59 PM
    • 17,910 Posts
    • 12,191 Thanks
    molerat
    Get an on line account, all the missing years that are available to buy are shown along with price. Don't phone DWP unless you want to end up more confused than when you started. Any questions can be answered here, especially the ones about whether pre 2016 years will count.
    www.helpforheroes.org.uk/donations.html
    • p00hsticks
    • By p00hsticks 21st Nov 17, 5:03 PM
    • 5,958 Posts
    • 6,053 Thanks
    p00hsticks
    Get an on line account, all the missing years that are available to buy are shown along with price. Don't phone DWP unless you want to end up more confused than when you started. Any questions can be answered here, especially the ones about whether pre 2016 years will count.
    Originally posted by molerat
    And be wary of buying pre-2016 years, which may not increase the pension amount.
    • barnes69442
    • By barnes69442 21st Nov 17, 7:32 PM
    • 2 Posts
    • 0 Thanks
    barnes69442
    My wife has a COPE reduction of £6.68 and has to pay £648.60 for 2016/17 (46 weeks).
    I believe this will result in an increase of £4.56 per week.
    If that is the case it should take only 143 weeks for a net gain to be made if I understand the rules correctly.
    2017/18 does not look like it would be anywhere near as good a calculation.
    Please advise.
    • molerat
    • By molerat 21st Nov 17, 7:48 PM
    • 17,910 Posts
    • 12,191 Thanks
    molerat
    On the gross amount received yes. £741.00 for 17/18 will only take 162 weeks so still excellent value. Don't forget that £4.58 is increased by inflation each year. Does she have any pre 2016 years available and if so have you run the calculations on them being economical ?
    Last edited by molerat; 21-11-2017 at 7:51 PM.
    www.helpforheroes.org.uk/donations.html
    • barnes69442
    • By barnes69442 22nd Nov 17, 7:41 AM
    • 2 Posts
    • 0 Thanks
    barnes69442
    There are no pre 2016 years available.
    Years missing 75-78 & 91-93 all time expired.
    She does not become eligible for her state pension till 2022 but is very unlikely to work again.
    As her shortfall is £6.68 and if we pay the £648.60 I make it that for the extra £2.12 shortfall it would be about 350 weeks before she breaks even if she pays the 2nd year., not quite such an attractive option.
    • molerat
    • By molerat 22nd Nov 17, 9:21 AM
    • 17,910 Posts
    • 12,191 Thanks
    molerat
    Still like buying a 15% annuity so not too shabby a return
    www.helpforheroes.org.uk/donations.html
    • GunJack
    • By GunJack 22nd Nov 17, 9:27 AM
    • 9,984 Posts
    • 7,464 Thanks
    GunJack
    Don't look at it against the COPE amount...if most of her years were pre-2016 the cope was only used once in the calculation of her starting amount, it won't be taken off her SP amount.
    ......Gettin' There, Wherever There is......
    • ossie48
    • By ossie48 27th Jan 18, 11:27 AM
    • 97 Posts
    • 46 Thanks
    ossie48
    You would seem to have a problem then.

    You need to contact the NI records office and get them to check on your contracted out status. You could also contact your pension providers to confirm that the schemes were contracted out, 99.99% chance they were..

    https://www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-enquiries-for-employees-and-individuals
    Originally posted by molerat
    Thread starter here : I have finally received a reply.

    My estimate based on my NI record up to 5th April is £122.29 a week. My forecast if I contribute another 9 years before 2032 is £159.55.

    My COPE estimate is £78.75 a week.

    Any suggestion on the way forward or do I settle on £122.29 a week..There's nothing about making up the amount (Just to recount I'm retired on a Final salary pension since 2013)

    cheers
    Last edited by ossie48; 27-01-2018 at 11:29 AM.
    • xylophone
    • By xylophone 27th Jan 18, 1:14 PM
    • 24,473 Posts
    • 14,327 Thanks
    xylophone
    Thread starter here : I have finally received a reply.
    http://forums.moneysavingexpert.com/showthread.php?t=5729633

    See post 8 above and https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf
    but for NSP read 155.65 and for BSP £119.30.
    • Linton
    • By Linton 27th Jan 18, 2:05 PM
    • 9,024 Posts
    • 9,108 Thanks
    Linton
    Thread starter here : I have finally received a reply.

    My estimate based on my NI record up to 5th April is £122.29 a week. My forecast if I contribute another 9 years before 2032 is £159.55.

    My COPE estimate is £78.75 a week.

    Any suggestion on the way forward or do I settle on £122.29 a week..There's nothing about making up the amount (Just to recount I'm retired on a Final salary pension since 2013)

    cheers
    Originally posted by ossie48
    Paying voluntary Class 3 NI contributions is a very cheap way of increasing your retirement income. You pay about £740 in one year to get an extra £240/year for every year you draw State Pension. Which means that after 20% tax you get back your contribution in about 4 years. So if you have a spare 9 years before reaching SP age I think you would be mad not to do it. Once you reach a full SP further NI contributions have no effect.
    • curtlyb
    • By curtlyb 1st Feb 18, 12:53 PM
    • 659 Posts
    • 198 Thanks
    curtlyb
    my State Pension forecast...
    Being only 49 (!) I thought i'd look into my own projection for retirement, the 'Cope' aspect is slightly confusing me....


    Current forecast for 2035 is £149.45 (from memory)
    with three more years contributions before 2035 i will get
    £159.55 which is the maximum.


    I did contract out for 7-8 years in the early 90's to a private policy.


    I have a Cope amount of £31.48, it says that this does not affect your Government State Pension amount as it is paid by the private policy.


    ??


    I thought the Cope amount would be my deduction from my state pension ie £159.55 - £31.48 (with hopefully the £31.48 being topped up by my private policy)


    Is this correct as i'm confused now, my only other theory is that i can make up the £31.48 Cope amount £4.55 at a time by accruing extra years of contributions from 2016 until 2035, so eight extra years will still give me the full £159.55 ??
    • Silvertabby
    • By Silvertabby 1st Feb 18, 1:06 PM
    • 2,276 Posts
    • 3,049 Thanks
    Silvertabby
    Being only 49 (!) I thought i'd look into my own projection for retirement, the 'Cope' aspect is slightly confusing me....


    Current forecast for 2035 is £149.45 (from memory)
    with three more years contributions before 2035 i will get
    £159.55 which is the maximum.


    I did contract out for 7-8 years in the early 90's to a private policy.


    I have a Cope amount of £31.48, it says that this does not affect your Government State Pension amount as it is paid by the private policy.


    ??


    I thought the Cope amount would be my deduction from my state pension ie £159.55 - £31.48 (with hopefully the £31.48 being topped up by my private policy)


    Is this correct as i'm confused now, my only other theory is that i can make up the £31.48 Cope amount £4.55 at a time by accruing extra years of contributions from 2016 until 2035, so eight extra years will still give me the full £159.55 ??
    Originally posted by curtlyb
    Forget the COPE - it was just used in your foundation amount calculation and is now meaningless.

    As long as you work/pay NI for another 3 years, you will get the maximum single tier State pension of £159.55 per week plus your contracted out personal/occupational pension.

    Depending on your personal/occupational pension scheme rules, you should be able to take this before State pension age.
    • curtlyb
    • By curtlyb 1st Feb 18, 1:11 PM
    • 659 Posts
    • 198 Thanks
    curtlyb
    Forget the COPE - it was just used in your foundation amount calculation and is now meaningless.

    As long as you work/pay NI for another 3 years, you will get the maximum single tier State pension of £159.55 per week plus your contracted out personal/occupational pension.

    Depending on your personal/occupational pension scheme rules, you should be able to take this before State pension age.
    Originally posted by Silvertabby




    Excellent, thank you for the clarification, I can see why the Cope figure is there as its a guesstimate of what I 'might' receive privately on top of the State Pension figure, makes sense now....
    • molerat
    • By molerat 1st Feb 18, 1:19 PM
    • 17,910 Posts
    • 12,191 Thanks
    molerat
    The COPE figure was deducted from your new pension calculation when arriving at your Apr 2016 starting amount. That amount was the higher of x 35ths of the new full pension amount - COPE or x 30ths of the old pension amount + S2P (which already had a contracted out deduction made on the figures shown on forecasts).
    www.helpforheroes.org.uk/donations.html
    • xylophone
    • By xylophone 1st Feb 18, 1:53 PM
    • 24,473 Posts
    • 14,327 Thanks
    xylophone
    At 6.4.16 - your starting amount was the higher of

    QY/30 x 119.30 + (Additional State Pension- Contracted Out Deduction)

    (QY/35 x £155.65) - COPE.

    Your starting amount was under the full new state pension amount so that QY after 6/4/16 will increase your starting amount up to NSP level.

    Once you have reached that level, although you need to pay NI if you are earning the appropriate amount, you cannot increase it beyond full NSP.

    Your private pension will pay what it pays - the COPE is what the Government estimated to be the least per week that it should pay.

    However, the actual amount will depend on your scheme.


    The figure was used only once in the calculation of your starting amount.

    See

    https://apps.warwickshire.gov.uk/api/documents/WCCC-962-294
    • LULULU1
    • By LULULU1 11th Feb 18, 10:15 AM
    • 349 Posts
    • 28 Thanks
    LULULU1
    Hi all, I am 55 this month and plan to retire in 2 years time. I have work and have always worked full time.

    My Gov state pension forecast says I will currently get £129.83 on my current contribution but get £159.55 if I work until 2029 which I don't want to do.

    I have 39 years of full national insurance contributions and will have a final salary defined benefits pension when I retire in 2 years time.

    I also have a COPE of £62.99 per week.

    So my question is will I get my full state pension if I only work for 2 more years and if not can I purchase more years and when is it best to do this.

    Many thanks for any help in advance
    • pip895
    • By pip895 11th Feb 18, 10:36 AM
    • 530 Posts
    • 299 Thanks
    pip895
    My understanding is that the COPE amount is the reason you are short of years. So yes you will need to purchase years to get up to the full £159.55. I don't think you can do this in advance so it will have to be after retirement.
    • LHW99
    • By LHW99 11th Feb 18, 10:44 AM
    • 1,140 Posts
    • 1,007 Thanks
    LHW99
    You would do it after retirement at age 55, but it needs to be for years before your SPA. You can't for example turn round age 75 (in 2038) and say I'll buy 2036-7 and 2037-8 now to make up.
    • LULULU1
    • By LULULU1 11th Feb 18, 11:00 AM
    • 349 Posts
    • 28 Thanks
    LULULU1
    I intend to do some part time work after I retire from fulltime work in 2020. My State pension is due in 2030. When are you suggesting I should look to purchase the extra Gov pension.

    Thanks
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