New State Pension Guide

dunstonh

I wonder if the "contracted out" will be the next big pension thing?

Doubt it. The majority of those that contracted out are better off under the recent change to a single state pension.

molerat

dunstonh wrote: »

Doubt it. The majority of those that contracted out are better off under the recent change to a single state pension.

I think GR3's train of thought is one of not being personally informed of the new system changes and options available to those who have not got the full amount and no longer working rather than a simple "mis-sale" on contracting out.

ezglide1450

So in addition to my previous post £152.65 is the most I can get ? Currently £124.70 I have 6 years to contribute before 5/4/22 and 9 years where I did not contribute enough.my cope estimate is £100.66.
Can anyone break this down for me please ?

molerat

Your starting amount at April 2016 is the higher of the old or new systems so the old 119.30 / 30 x 30 + S2P = £124.70 or the new 155.65/35 x 35 - £100.66 = £54.99. You are better off under the old system, getting exactly what you already had. Now you have the ability to add to that going forward from 2016. £155.65 - £124.70 = £30.95 / £4.45 = 7 years post 2016 contributions needed to reach the full amount. As you only have 6 years to go you will not be able to reach that maximum but will end up with more than you would have done under the old scheme - future contributions would have added very little if not £0. £4.45 x 6 = £26.70 + £124.70 = £151.40. As you can only use a maximum of 35 pre 2016 years filling any of those gaps will not add anything.

Figures are getting a bit confused now as the website is showing the updated 2017 amounts but calculations still have to start with the April 2016 pension and COPE amounts uprating the outcome by 2.3%.

Ghretiree

The more I read about the new state pension the more confused I get. My estimated state pension is £137.29 per week, starting in 2021. According to my NI record I have 43 full years up to 5 April 2016. I was contracted out for some of those years so when it states 'Full' I assume it doesn't mean Full for the purpose of the state pension, hence the difference, but I'd like to understand the calculation. I have now stopped working so will be unable to make up the shortfall. Seems harsh when I've already paid 8 more years than is required...

molerat

You will be able to make up the difference with voluntary contributions.

You were given a starting amount in April 2016 which was the higher of your pre or post 2016 calculations. You in fact have 13 more years than was used to calculate that starting amount.

xylophone

but I'd like to understand the calculation.

At 6 4 16, two calculations were done.

Old scheme - Full BSP (£119.30) + (SERPS/S2P - Deduction for contracting out).

New scheme Full NSP (£155.65) - Deduction for contracting out.

Is the £137.29 your starting amount at 6.4.16?

Paul_Newnham

I am 51 and I have just gone online for a state pension forecast. It say i will receive the full amount of the New State Pension, 159.55, if i pay in for another six years (which i more than likely will).

Later in the forecast it says my COPE (Contracted Out Pension Equivalent) estimate is £40.04.

Do i need to deduct the COPE amount £40.04 from the £159.55 to arrive at the figure i will receive? i.e £119.51.

p00hsticks

Paul_Newnham wrote: »

Do i need to deduct the COPE amount £40.04 from the £159.55 to arrive at the figure i will receive? i.e £119.51.

No you don't.

Paul_Newnham

Thanks

So can you explain what the COPE amount represents then?

And how can i find out if i get the full amount of the new state pension? I thought the New Pensions State Pension decreased if you had contracted out? But by how much?