Will I get any state Pension?

JAG61

TW have sent through my 55th birthday figures they said they could not do any other years due to changes in laws, taxes........ and fair enough I can't argue with that one.

I was very impressed with the way they acknowledge I am overseas and send everything in an email to me. Private information is password protected.

I have been offered 6,138 a year or 30,690 plus 4,723 a year or wait for it 247,385 transfer value now that would be a massive NZIRD Tax bill.

They said they would write to me at 60 to tell me if I had any increase in my pension and details of any tax recovery charge due!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I have said thank you but I will be staying with them.

JAG61

Well my New Statement arrived and yes I qualify.

Old Statement was 20 years NI and a total of 75.40 a week.

New Statement is 20 years NI and State Pension is 79.53 and a COPE amount of 44.80.

So is that 79.53 - 44.80 ????

The booklet also said that the COPE figure would increase due to revaluation. So a double kick in the teeth from the mis- sold pension from DB into DC.

I have decided in the end not to QROPS the DC Pension but to leave it where it is as the exchange rate for bringing pounds over is not good BUT really brilliant for a good trip back to good old blighty and ALL my family. The Plan was for it to go into a SIPP holding GB funds.
The risk was to great regarding exchange rates, plus transfer fees, plus tax on bringing it over, ongoing fund fees (greater than the PRU) and 28% on investent returns (0% with Pru) plus a few other risks. Best to leave it where it is.

I think my initial question will I get a UK pension is yes but not much and it will be frozen.
Husbands figures are much the same.

Kynthia

Others will answer later in the morning. However I believe you ignore the COPE figure rather than deduct it. It confuses the majority of people but I believe it's an arbitrary figure they have calculated as the expected pension you have somewhere else due to contracting out for a period of time. I don't know why they calculate it or how accurate they think they are with their calculators as surely someone who chose poor investments in a DC scheme will have a very different COPE figure in real life to someone in a generous DB scheme.

jamesd

That's £79.53.

COPE is the extra expected from your contracted out pension, roughly what you would have got if you'd stayed in the state pension system instead, except without the flat rate/single tier pension cap at about £155 total value.

molerat

The COPE is used in the calculation of the 2016 starting amount though.

So OP's starting amount is the higher of

old style 119.30 / 30 x 20 = £79.53
or
new style 155.65 / 35 x 20 - 44.80 = £44.14

and old wins.

I wish they would still give out the old "too complicated" to understand pension forecasts, a lot less confusion with them :rotfl:

JAG61

Many thanks.

So it has started at 79.53 and will it then decrease annually due to the increasing COPE revaluation figures.

Does the COPE increase every year until you die or does it stop when you reach GMP age?

Or have I got it totally wrong?

kidmugsy

It will be £79.53, and won't increase with UK inflation unless you come home or move to one of the jurisdictions where that constraint doesn't apply. There will be no reduction due to COPE, now or in future.

Mind you, I'm an amateur, so open to correction.

molerat

The £79.53 will increase annually until you reach your state pension age when it will be frozen. The COPE will be revalued annually but only as an indication of how much you should be receiving from the pension where the NI savings were paid into.

JAG61

Many thanks all.

So I should just be concentrating on the 79.53 because that is what you get.

Which is 4135 pounds. They have worked out 2329 (44.80 *52 weeks) should be embedded in my Barclays Pension and my would have been Rolls Pension (now the Pru).

The GMP in Barclays is about 2815 currently but the Rolls has gone.

JAG61

My next question is, is the COPE value the amount I should have paid into my NI contributions but didn't due to paying a lower rate of NI.

Did this lower rate of NI payment affect the Basic Rate Pension or was it to do with the SERPS Pension?

Was the additional Pension a requirement if you reached a certain annual income either you paid to SERPS or the equivalent into your works scheme?

Do people who paid the Basic Rate get the Full yearly value or do they also get the SERPS part taken off ?

Is the COPE the amount I should have paid but didn't?