State pension forecast query

xylophone

 it says need to contribute one more year NI before 2034 to qualify . It says £168.60 is most can get .

Then one more year gives the full NSP - once that point is reached, (although if working and earning the relevant amount she will still have to pay NI up to SPA), she cannot add to her pension - it will increase only by whatever inflation linking the government chooses to apply (at the moment, under the "triple lock" arrangement). This is a guarantee to increase the state pension every year by the higher of inflation, average earnings or a minimum of 2.5%.

it also says you were contracted out of part of the state pension (COPE £8.50 per week) - I done understand this bit ?

It means that at some point in her working life, your wife was "contracted out" of Additional State Pension  - you have a DB pension - does your state pension forecast not show a COPE?

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

p00hsticks

sorry -ignore

shiredevon

I'm getting 151 per week I think if my math is right, 654.72 monthly,  my forecast was nearer 690 from memory, every little helps eh, I doubt if they've made an error but here's hoping Hehe

Mick70

xylophone said:

 it says need to contribute one more year NI before 2034 to qualify . It says £168.60 is most can get .

Then one more year gives the full NSP - once that point is reached, (although if working and earning the relevant amount she will still have to pay NI up to SPA), she cannot add to her pension - it will increase only by whatever inflation linking the government chooses to apply (at the moment, under the "triple lock" arrangement). This is a guarantee to increase the state pension every year by the higher of inflation, average earnings or a minimum of 2.5%.

it also says you were contracted out of part of the state pension (COPE £8.50 per week) - I done understand this bit ?

It means that at some point in her working life, your wife was "contracted out" of Additional State Pension  - you have a DB pension - does your state pension forecast not show a COPE?

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

Thanks I only asked as noticed couple posters saying in past that you shouldn’t just go by the opening screen which indicates will get full SP , I wasn’t sure why .
havent checked mine as gateway details at work . 

This COPE business it says doesn’t affect your SP forecast so u sure what it’s implications are If any ?

xylophone

654.72 monthly, 

SP is not paid monthly - do you mean £654.72 every four weeks?

shiredevon

Yes, that's what I've been getting

shiredevon

Maybe because I'm living abroad I'm getting paid monthly? 

molerat

£159.56 + 2.6% = £163.71, £654.72 / 4 = £163.68 so close enough !  Are you sure it is being paid monthly ?  I reached SRA same date as you and my payments have been 4 weekly on 29 Nov, 27 Dec, 24 Jan and 21 Feb so once a month What are the actual payment dates ?

SnowMan

shiredevon said:

Hi guys
I am now receiving my pension, i'm getting 654.72, it's not as much as i was expecting, thought more like 690?,
Is it worth a query or are they probably correct, so difficult to contact from here, can't find an email address so it's using a
mobile and usually end up in a queue and lose connection,
Just wondered if you thought it worth the hassle.
Thanks guys

We know from earlier in the thread the starting amount at April 2016 was £137.77pw (30/30 x 119.30 + 18.47)

Revaluing this into the current tax year increases the £137.77 to £149.23pw (137.77 x 168.60/155.65)

Adding in 3 post April 2016 Qualifying Years that you've bought (2016/2017, 2017/2018, 2018/2019) adds a further 168.60/35*3 = £14.45pw

So in total your state pension is £149.23pw + £14.45 = £163.68pw

163.68 X 4 = £654.72 every 4 weeks

So agrees to the penny.

xylophone

Mick70
BSP at 6/4/2016 was £119.30

NSP was £155.65.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

At 6/4/16 two calculations were done (for you and for your wife)

NI years/30 x £119.30 + ( Additional State Pension - a deduction for contracting out)
(NI years/35 x £155.65) - Contracted Out Pension Equivalent.
The COPE is  called the "rebate derived amount" in the link.
The "starting amount"  for each of you was the HIGHER of the two calculations.
If the "starting amount" was less than the amount of a full new state pension, there was the possibility of improving it up to a full NSP by NI contributions or credits, depending on the exact situation of each of you.