State Pension and Contracting Out

subseaeng

My apologies if this is covered elsewhere but I searched the forum and could not find it. My wife has received a forecast of her future state pension (in about 3 years) and it is significantly less than the £155 basic flat rate currently slated . She is forecast to receive £122 because her teachers pension scheme was apparently contracted out for several years. She was not aware of this although presumably she has benefited from this contracted out period.
My question is: "Is it possible to make additional voluntary NI contributions now to bring the forecast State pension back up closer to the supposed future basic rate pension?"
I suspect the answer is no, but just wondered if anybody knows more definitely.

bigadaj

Probably not.

How old is she, if she is still working then she will be accruing more pension currently and going forward.

I don't believe that you can buy this for previous years, you can buy added years for those you didn't qualify for at all, but the contracted out part meant lower NI contributions at the time and that pension either being added to the defined benefit scheme such the teachers pension or a separate private pension.

molerat

You need the following pieces of information which are all available from the on line pension forecast
Number of NI years
Any missing NI years
COPE amount
Current SP amount
SP date

She will be able to add post 2016 years, at the rate of £4.45 per year, up until the year before she reaches SP age either by working or voluntary contributions. It is highly unlikely that any pre 2016 years, if available, will add value to the current amount.

bigfreddiel

Well this poster says that his wife will take her sp in three years, so she can add about 3x£4.45 to it if she is still working. So there we have it quite simple really.

Cheers fj

xylophone

http://citywire.co.uk/new-model-adviser/news/steve-webb-how-to-boost-new-state-pension-payments/a827032

The figures are out of date - NSP is £155.65.

greenglide

NSP is £155.55.

.... it is actually £155.65 but what is 10p between friends!

xylophone

Thanks - mistype - have corrected!

bigfreddiel

greenglide wrote: »

.... it is actually £155.65 but what is 10p between friends!

This is such a hoot! fj

zolablue25

Hi all. I don't think I am hijacking this thread as my query seems relavent but apologies if others view this differently.

I am about to turn 50 and so my mind has naturally started thinking about my current lack of pension planning. I have been reading around about the new flat rate pension that, at first sight, seems to simplify things but when you read further has actually left me so confused my head is spinning. You see, I was one of those that contracted out (voluntarily into a private pension, not because of a workplace pension) many years ago and this seems to have added a layer of confusion that I can't seem to get through.

I have gone online to the Governments pension statement site and have the following information....

Your State Pension forecast - £155.65
Your COPE estimate - £46.13
COPE added to your State Pension Forecast - £201.78

What does this actually mean? Does this mean that I will receive the full state pension at whatever rate that is at my retirement age, or is there some nasty surprise hiding in the COPE figure that I don't understand?

Just FYI I am currently sitting on 33 years of full contributions (with a 34th yet to be added for 2015/16).

I really need to get this straight in my head so I knwo what to expect. Of course, during the next 18 years I'm sure this will all change but I can only deal with what is currently in front of me.

Cheers

SnowMan

zolablue25 wrote: »

I have gone online to the Governments pension statement site and have the following information....

Your State Pension forecast - £155.65
Your COPE estimate - £46.13
COPE added to your State Pension Forecast - £201.78

What does this actually mean?

You've missed off the most important figure on the online system which is the 'Estimate based on your National Insurance record up to 5 April 2015'. Without that it is very difficult to comment. What is that figure?

zolablue25

SnowMan wrote: »

You've missed off the most important figure on the online system which is the 'Estimate based on your National Insurance record up to 5 April 2015'. Without that it is very difficult to comment. What is that figure?

Sorry, yes I just noticed that myself. It says....

Estimate based on your National Insurance record up to 5 April 2015 £127.86


Estimate if you contribute another 7 years before 2033 £155.65

If it makes any differnece I woudl like ot think that I can put in the extra 7 years over the next 17.

Thanks