State pension forecast and COPE

GDB2222

I have my state pension forecast for when I reach retirement age later this year. It shows a pension of £159.55 pw, which I understand is the maximum.

What is confusing me is that it also shows a COPE of £16 pw. DWP told me that I will get the £159.55 from them, without any deduction.
In which case, why have they shown the COPE amount?

Can anyone explain, please?

AndyAdams

It stands for the "contracted out pension equivilent", is a guestimate based on contracting out of the additional state pension. The idea is to show you the additional benefit you have received from the government.

I think it justs adds confusion.

Dazed_and_confused

To confuse everyone!

Are you absolutely certain the £159.55 is correct. My forecast is £159.55 but when you look closer I will have to work (or get NI credits by some other method) x more years to actually reach the £159.55 despite what my "forecast" says.

The COPE amount is a nominal figure which you should receive as part of whatever contracted out pension scheme you were signed up to. They won't know about the COPE figure specifically but your (company/occupational) pension should be worth at least £16/week or quite probably a fair bit more.

GDB2222

Thanks for confirming that it's just confusing!

I do get the full amount, provided that I pay or get credited NI contributions for the tax year 16-17. I posted separately about possibly paying voluntary contributions for that year.

iwilson16

The COPE figure in the state pension forecast should be *subtracted* from the forecast figure to get what you will actually receive at retirement age.

I think you can reduce the amount of COPE deduction by working more than the 35 NI qualifying years (after Apr 2016). I think its £4.45 per year.

My SP forecast figure is £157.65 pw, and COPE is £38.29. I hope to reduce the COPE deduction to approx £16 by working some more.

Ian

p00hsticks

iwilson16 wrote: »

The COPE figure in the state pension forecast should be *subtracted* from the forecast figure to get what you will actually receive at retirement age.

This isn't correct - the forecast figure is what you will actually get.

dunstonh

The COPE figure in the state pension forecast should be *subtracted* from the forecast figure to get what you will actually receive at retirement age.

No it shouldnt. It is purely an indicator of what your contracted out pension benefits could be. It is a more useful figure when people dont get the maximum. They can see the reason with the COPE. However, when they do get the maximum, it is largely a pointless figure.

Although it can be useful to compare the benefits of your contracted out plan vs the COPE. E.g. if you get COPE showing at £38 pw and the contracted out segment of your pension gives you £45 pw, then you can see that by contracting out, you are £7 pw better off. However, even that comes with lots of caveats as you could have a lump sum or take it at a different age.

My SP forecast figure is £157.65 pw, and COPE is £38.29. I hope to reduce the COPE deduction to approx £16 by working some more.

That isnt how it works. You may be able to get it closer to £159 but you can disregard the COPE.

sherbet99

"The COPE figure in the state pension forecast should be *subtracted* from the forecast figure to get what you will actually receive at retirement age."

”This isn't correct - the forecast figure is what you will actually get."

Still doesn't sound right to me.....

My forecast figure is the full amount £159.55.
My COPE amount is £57.06.

Does that mean that I will get the full £159.55 paid by the government plus I will also get the income from the Contracted Out/Protected rights pension I have build up (current value around £80k), which should give me a nice little extra income on top of the forecast figure?

Linton

sherbet99 wrote: »

"The COPE figure in the state pension forecast should be *subtracted* from the forecast figure to get what you will actually receive at retirement age."

”This isn't correct - the forecast figure is what you will actually get."

Still doesn't sound right to me.....

My forecast figure is the full amount £159.55.
My COPE amount is £57.06.

Does that mean that I will get the full £159.55 paid by the government plus I will also get the income from the Contracted Out/Protected rights pension I have build up (current value around £80k), which should give me a nice little extra income on top of the forecast figure?

The forecast figure is what you will get provided you pay any future NI specified in the forecast. The COPE was a number used in the calculation but as it happened it didnt prevent you reaching standard SP.

Yes, those people such as yourself whose COPE is outweighed by other factors do win out if they also hold a contracted out pension.

dunstonh

My forecast figure is the full amount £159.55.
My COPE amount is £57.06.

So, you are a beneficiary under the new state pension. You get the £159.55 plus you have contracted out benefits as well.

Had you been contracted in, you could still be looking at £159.55 but without any extra in your personal provision.

sherbet99

Great thanks for the reply's. Glad I contracted out all those years ago now.