New State Pension Guide

Suffolk_lass

jem16 said:

Suffolk_lass said:

molerat, after you posted the quoted text in my reply JaveaSteve said he gave up work in 2008 - so he is eligible to top up his pension by paying for the tax years since he stopped work. I have also stopped work with 44 years of full NI Contributions but I will still be making voluntary contributions for this year and the next three tax years before that in which I reach SPA to maximise my entitlement to the new state pension. Like JaveaSteve I was opted out of SERPS for most of those 44 years, so only earned entitlement to the basic state pension during that time.

As molerat has said, only years from April 2016 onwards would make any difference. Paying for years from 2008 to 2016 would not improve his pension and would be a waste of money. 

Why do you say only the years after 2016 would make a difference? If he reaches SPA after the new state pension is introduced (he does), any full contribution years he can make up would reduce the number of opted out years he is relying on to calculate his state pension award. Bridging between basic state pension (for opted out of SERPS period) and part of the new state pension.

What I am not certain about is whether he can do this retrospectively after claiming his pension

molerat

Suffolk_lass said:

jem16 said:

Suffolk_lass said:

molerat, after you posted the quoted text in my reply JaveaSteve said he gave up work in 2008 - so he is eligible to top up his pension by paying for the tax years since he stopped work. I have also stopped work with 44 years of full NI Contributions but I will still be making voluntary contributions for this year and the next three tax years before that in which I reach SPA to maximise my entitlement to the new state pension. Like JaveaSteve I was opted out of SERPS for most of those 44 years, so only earned entitlement to the basic state pension during that time.

As molerat has said, only years from April 2016 onwards would make any difference. Paying for years from 2008 to 2016 would not improve his pension and would be a waste of money. 

Why do you say only the years after 2016 would make a difference? If he reaches SPA after the new state pension is introduced (he does), any full contribution years he can make up would reduce the number of opted out years he is relying on to calculate his state pension award. Bridging between basic state pension (for opted out of SERPS period) and part of the new state pension.

What I am not certain about is whether he can do this retrospectively after claiming his pension

You then misunderstand how the system works.  Only a maximum of 35 years can be used to calculate the 2016 starting amount.  There are no "contracted out" years, a year is a year irrespective of being contracted in or out.  The only effect of contracting out is to produce a COPE figure to deduct from that 35 year pension amount. With 35 or more years already in the pot no more can be added, you cannot "replace" contracted out years.

Suffolk_lass

molerat said:

You then misunderstand how the system works.  Only a maximum of 35 years can be used to calculate the 2016 starting amount.  There are no "contracted out" years, a year is a year irrespective of being contracted in or out.  With 35 or more years already in the pot no more can be added.

If I misunderstand the system, why then does my own statement shows I have 44 years now and shows pension earned to date at £144.41 with a forecast of £163.68 if I contribute until 5 April 2023 (4 more years). This is the difference between counting the years I was opted out of SERPs and maximising the years where I was not. The link on Gov.UK does not say I cannot top up because I have exceeded the number of years.

jem16

Suffolk_lass said:

molerat said:

You then misunderstand how the system works.  Only a maximum of 35 years can be used to calculate the 2016 starting amount.  There are no "contracted out" years, a year is a year irrespective of being contracted in or out.  With 35 or more years already in the pot no more can be added.

If I misunderstand the system, why then does my own statement shows I have 44 years now and shows pension earned to date at £144.41 with a forecast of £163.68 if I contribute until 5 April 2023 (4 more years). This is the difference between counting the years I was opted out of SERPs and maximising the years where I was not. The link on Gov.UK does not say I cannot top up because I have exceeded the number of years.

Your Starting Amount was calculated in April 2016 as the best of the old (30 years) and new (35 years) calculations. Anyone who has less than the full nSP at that point can then improve it by making further contributions from that point. If they already have at least 35 years, then making payments prior to April 2016 will not improve the state pension as you already have more than enough.

However in your case you can improve your situation by making contributions from April 2016 to April 2023 as each year you pay is adding on approximately £4.80.

You can pay for years prior to April 2016 if there are gaps, but as it will make no difference to the state pension amount, why would you do that?

Dazed_and_C0nfused

You probably can top up pre April 2016 if you want.

Just don't expect your forecast to change as a result.

You need to focus on adding more post April 2016 years.

johnpr98

Suffolk_lass said:

molerat said:

You then misunderstand how the system works.  Only a maximum of 35 years can be used to calculate the 2016 starting amount.  There are no "contracted out" years, a year is a year irrespective of being contracted in or out.  With 35 or more years already in the pot no more can be added.

If I misunderstand the system, why then does my own statement shows I have 44 years now and shows pension earned to date at £144.41 with a forecast of £163.68 if I contribute until 5 April 2023 (4 more years). This is the difference between counting the years I was opted out of SERPs and maximising the years where I was not. The link on Gov.UK does not say I cannot top up because I have exceeded the number of years.

I retired early and already had had 44 years NI contributions pre 2016, 33 years  with LG and lower rate NI.
I paid 2 years extra NI contributions after April 2016 and increased my pension by £10 per week. I will break even after 4 years (incl Income Tax deductions).
I recommend paying the extra years after 2016 if possible, your personal projection sounds spot on to me. 
I read advice from Steve Webb similar to this:
https://www.theguardian.com/money/2016/oct/08/how-to-boost-state-pension
Good Luck

ffacoffipawb

xylophone said:

What was your COPE?

Is it still possible to view your COPE? I still see I need 1 year (this one, got it before retiement) but i see no mention of COPE on that page.

Dazed_and_C0nfused

It used to be right at the bottom of the forecast and took you to an additional page.

jem16

ffacoffipawb said:

xylophone said:

What was your COPE?

Is it still possible to view your COPE? I still see I need 1 year (this one, got it before retiement) but i see no mention of COPE on that page.

I can still see it when I click on this link in my online forecast.

ffacoffipawb

Dazed_and_C0nfused said:

It used to be right at the bottom of the forecast and took you to an additional page.

jem16 said:

ffacoffipawb said:

xylophone said:

What was your COPE?

Is it still possible to view your COPE? I still see I need 1 year (this one, got it before retiement) but i see no mention of COPE on that page.

I can still see it when I click on this link in my online forecast.

thanks, i will take another look later.