State Pension Forecast

waveydavey48

lisyloo wrote: »

No, the COPE amount will not get deducted.
It’s a forecast of what your private will pay for the contracted out money you took

I would be very grateful if you could clarify. I worked for AVIVA for 24 years during which time I was contracted out. My deferred pension with them is £16k pa in today's money and I can take that from age 60, in 3 years time. My state pension forecast says I have a full SP of £168.60 per week but a COPE of £57.15 per week payable at age 67.

Does this mean I will get SP of £111.45 from the state because my £16k pa includes the COPE of £57.15 per week?

Sorry to appear dense.

GibbsRule_No3.

You will get full State Pension and your COPE is in the Aviva Pension. You have enough years to work after 2016 to get the full SP.

shilts

My forecast says that I have 34 years contributions and require a further 2 years to get the full £168.80 . It states that I have been contracted out and my COPE of £33.18 will not affect my forecast . When I checked my national insurance records I have FULL contributions for every year since I started work . Is this correct if I have been contracted out for some of this time, thanks ?

Silvertabby

shilts wrote: »

My forecast says that I have 34 years contributions and require a further 2 years to get the full £168.80 . It states that I have been contracted out and my COPE of £33.18 will not affect my forecast . When I checked my national insurance records I have FULL contributions for every year since I started work . Is this correct if I have been contracted out for some of this time, thanks ?

Yes - when DWP say 'full year' they actually just mean full financial year, not full /not contracted out rate of NI.

Another transitional period winner - full single tier pension plus contracted out occupational pension.

GibbsRule_No3.

Shilts my understanding of COPE is that it probably affected more things before the 2016 State Pension introduction. You have enough years to work or contribute by buying years after 2016 to reach the full new pension amount, I have a few years added but get my SP at 65 8 months so won’t get the full due to contracting out in previous years.

shilts

Thanks for the quick replies . So if everything goes to plan I have another 10 years before I retire but will only need the 2 years . Presumably I will not need to buy years and 2 more years is sufficient to get me the full state pension , thanks .

lisyloo

waveydavey48 wrote: »

I would be very grateful if you could clarify. I worked for AVIVA for 24 years during which time I was contracted out. My deferred pension with them is £16k pa in today's money and I can take that from age 60, in 3 years time. My state pension forecast says I have a full SP of £168.60 per week but a COPE of £57.15 per week payable at age 67.

Does this mean I will get SP of £111.45 from the state because my £16k pa includes the COPE of £57.15 per week?

Sorry to appear dense.

No.
The COPE is merely an estimate of what you will be getting from Aviva for your contracted out money.
It is not deducted.

SMcGill

That article link spooked me somewhat so I hope you don’t mind me jumping on this thread to ask a quick question.

I received a SP forecast in April 2016 which gave £132 in SP and £43 in COPE.
I’ve just received an updated forecast giving £162 in SP and £45 in COPE.
I’m still working and DWP have said I will get full SP if I make 2 more years NI contributions.

Does that all sound about right? It seems quite a leap in SP. That may be the new rules but if it looks odd to those who understand these matters then perhaps I should get back onto DWP.

GibbsRule_No3.

SMGill so long as your SP does not start before 2021 you will get the full new SP that started in 2016 and your COPE will be in the Private Pension. As I am always being told “we benefit from the 2016 change”. We both paid less NI when contracted out but because we are still working we get £x.xx a week for so many years of work after 2016 to reach either, in your case full SP or in mine 3 years extra of the £xx.x per week. I just miss 4 years extra because my SP starts in March 2020 not after April 6th 2020. So you need full years. Guessing you are either 63 or early 64 at present?

Silvertabby

lisyloo wrote: »

No.
The COPE is merely an estimate of what you will be getting from Aviva for your contracted out money.
It is not deducted.

Not quite. COPE is, very roughly, the amount of SERPS/SP2 given up by contracting out. Yes, this amount should form part of your occupational pension, but it depends on the pension scheme.

For example, where contracted out personal pensions have been reduced due to poor perfomance, taking early payment, maximum tax free lump sum, etc, the COPE figure could well be more than the actual private pension at SPA. On the other hand, a good final salary scheme should pay out much more than the COPE.