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Trying to understand my COPE estimate, is it this simple?

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Hi there,

Currently my state pension estimate is £108.50.

I had been contracted out for many years and have a COPE estimate of £19. Does this mean that my state pension estimate would have been £19 extra if I had not contracted out in the past. So my current estimate would have been £127.50?

I also remember reading somewhere that if the COPE estimate increases then the starting amount for the state pension would decrease.

Comments

  • Silvertabby
    Silvertabby Posts: 10,144 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    edited 21 January 2017 at 1:46PM
    How old are you? As your foundation amount pension is below £119, that would indicate that you have less than 35 years (of contracted in or out) NI contributions. If you work for at least another 10 or 11 years your future NI contributions will take you up to the maximum single tier pension of £155 per week.

    Don't take too much notice of the COPE figure - it's DWPs attempt at trying to explain how contracting out affects the new single tier pension, but they've only succeeded in causing a lot of confusion!
  • Asghar
    Asghar Posts: 435 Forumite
    Part of the Furniture 100 Posts Name Dropper
    Thanks for the reply,

    I'm 46 so hopefully will be working enough years to increase the starting amount of the new state pension to the maximum, if that is even possible after having been contracted out for any number of years.
  • Silvertabby
    Silvertabby Posts: 10,144 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Thanks for the reply,

    I'm 46 so hopefully will be working enough years to increase the starting amount of the new state pension to the maximum, if that is even possible after having been contracted out for any number of years.

    Yes it is - you're one of the lucky ones, as you have had the benefit of paying reduced NI for the years you were contracted out, but have ample time to work up to the full single tier pension.
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