State pension forecast confusion

cobson

My SPF is £159.70 a week, but my NI contributions only show 32 full years. There is a COPE estimate of £14.90.

Aren’t 35 years needed for a full £159.70 estimate ? If I work another 3 years what effect will that have if any ? How does the COPE amount affect the estimate ?

Thanks.

datlex

Hi OP how old are you. Mine is similar I currently don't have enough NI Contributions to meet full SPF. However, it shows as full as I have sufficient years left to meet this. If you have sufficient years to meet the 35 years you will get a full state pension. The following may help: https://www.gov.uk/government/publications/state-pension-fact-sheets/contracting-out-and-why-we-may-have-included-a-contracted-out-pension-equivalent-cope-amount-when-you-used-the-online-service The COPE figure relates to the option we had to contract out of the old second pension. The government assumes you will get this amount from the provider you opted out to. In reality the amount received from the provider you chose may be different amount. In theory you should get the full state pension plus the amount from your opt out provider.

cobson

I have sixteen years left to contribute. So the estimate is including assumed future contributions ?

molerat

You have quite a low COPE so a relatively short contracted out period. It could well be that your old rules pension, which includes S2P, is in excess of the new maximum. All the figures from the forecast are needed especially the one that gives the amount up to April 2016 (or 2017).

p00hsticks

cobson wrote: »

My SPF is £159.70 a week, but my NI contributions only show 32 full years. There is a COPE estimate of £14.90.

Aren’t 35 years needed for a full £159.70 estimate ? If I work another 3 years what effect will that have if any ? How does the COPE amount affect the estimate ?

Thanks.

No, you don't necessarily need 35 years - those of us who started our working lives under the old ruels may need more or less depending on our individual circumstances.

It sounds as if your 'starting amount' when the rules changed in April 2016 was calculated under the old rules (as being higher than that under the new rules) and that you have accumulated around £40 of additional pension (SERPS/S2P)

Old rules;
(NI years up to max of 30) / 30 x £119.35 + additional state pension

New rules;
(NI years up to max of 35)/35 x £159.55 - COPE

https://www.gov.uk/new-state-pension/how-its-calculated

cobson

It doesn’t give any other figures, no mention of the 2016 starting amount...

ak3lly

If you contact the state pension forecast number they will probably be able to give you a detailed reason as to where the calculation is, old rules, new rules or new state pension. The website is designed to be a simple reference and won't give detailed information.
0191 218 3600 is the number I believe

tempus_fugit

Is this not just due to the fact that the main figure in the estimate usually assumes that you will be continuing to contribute NI until your retirement date?

molerat

If I remember correctly from previous postings that if you have exceeded the new pension maximum already then that is the only figure you see.

cobson

I think you’re right poohsticks and molerat. I think I must have accrued enough serps/s2p. I was contracted out to my dc scheme but contracted myself back in again a few years later. I guess whether that was a wise move or not depends on how many more years I intend working.

I don’t think the forecast takes future contributions into account, I think it shows the current situation.