Basic State Pension & COPE

Curious_Moose

If you are on target to have 35 years NI contributions and you also have a Contracting Out Pension Equivalent pension which will be subtracted from the £155.65 per week which you would otherwise have received, is there anything to be gained by paying NI conts in future years (i.e. to go above 35)? Or will your state pension always be £155.65 - COPE pension? Is there any possibility of the COPE deduction being reduced for NI contributions above 35 years?

McKneff

You dont have any choice, you have to keep paying NI until pension age

Curious_Moose

McKneff wrote: »

You dont have any choice, you have to keep paying NI until pension age

Well stopping work after 35 years NI is an option. I was just wondering if carrying on working and paying NI above 35 years would affect the COPE in any way. If there's any chance the COPE would be reduced.

molerat

Your April 2016 starting amount is the higher of the old or new calculation, 30 years + additional pension or 35 years - COPE. From April 2016 you will be able to add to this by whichever contribution method until you reach the maximum £155.65. Have you had a pension forecast recently ?

Silvertabby

The COPE can't/won't be reduced. You need to get a State pension forecast. If your foundation amount (of State pension) as at April 2016 is less than £155 per week, you can add to that either by working and paying NI or paying voluntary Class 3 NI contributions.

Curious_Moose

molerat wrote: »

Your April 2016 starting amount is the higher of the old or new calculation, 30 years + additional pension or 35 years - COPE. From April 2016 you will be able to add to this by whichever contribution method until you reach the maximum £155.65. Have you had a pension forecast recently ?

So if you've done 35 years NI and have a COPE of say, £30 per week, giving a current forecast of £155.65 - £30 = £125.65, would future years NI help at all or would the £30 COPE mean you could never get above £125.65 anyway?

molerat

COPE is only used in calculating the April 2016 starting amount. From April 2016 onwards any contributions add to that starting amount until you reach the maximum.

Silvertabby

So if you've done 35 years NI and have a COPE of say, £30 per week, giving a current forecast of £155.65 - £30 = £125.65, would future years NI help at all or would the £30 COPE mean you could never get above £125.65 anyway?

It depends on your foundation amount - ie, your State pension forecast as at April 2016. Contracting out ended in April 2016 so, going forward, every year you work and pay NI will add £4.45 per week to your foundation amount up to the maximum £155 per week.

Curious_Moose

Silvertabby wrote: »

It depends on your foundation amount - ie, your State pension forecast as at April 2016. Contracting out ended in April 2016 so, going forward, every year you work and pay NI will add £4.45 per week to your foundation amount up to the maximum £155 per week.

Well my forecast is £155.65 on the government website (it doesn't mention a foundation amount), but then it says there's also a COPE to deduct. So I'm just wondering if any years above 35 will actually help reduce the COPE in any way.

Silvertabby

Are you sure you're reading it correctly? When I did my online forecast, my foundation amount was £138, and my COPE was £60 - but that doesn't mean that my State pension forecast is £138 - £60 = £78. It means that my State pension would have been £138 + £60 = £198 if I hadn't been contracted out.

molerat

You need to read carefully what it says alongside the figures.