COPE deduction (again)

Sea_Shell

Right then....Mine says.

Your State Pension forecast is £168.60 pw
Estimate based on your current NI = £143.95 pw
Forecast if you contribute another 7 (sorry that should read 6!!) years = £168.60 This is the most you can get.
COPE estimate = £19.88pw (yes, I have another pensions that should reflect this) *
I have 2 years where I didn't pay enough
I have 30 years of full contributions, with 19 years left to contribute.

So am I GUARANTEED to get at least the £143.95 pw (plus indexing) if I do nothing, and stop work now?

As I said my plan would be to pay up any missing years to get to the full amount, but not yet, as anything could happen in the next 19 years!!!

* Just looked up my Contracted Out pension, and the current fund value is approx. £16,500 and it is predicting an annual pension of £388, so only £7.46 per week!! But that is from age 60, not 67.

Dazed_and_confused

Is "current NI" upto 5 April 2018 or 5 April 2019?

And seven years doesn't make sense mathematically.

5 years at £4.81/week = £24.05

£24.05 + £143.95 = £168.00

So year 6 is debatable whether paying c£750 is worth it to gain £0.60

But year seven would add nothing.

molerat

Sea_Shell wrote: »

Right then....Mine says.

Your State Pension forecast is £168.60 pw
Estimate based on your current NI = £143.95 pw
Forecast if you contribute another 7 years = £168.60 This is the most you can get.
COPE estimate = £19.88pw (yes, I have another pensions that should reflect this) *
I have 2 years where I didn't pay enough
I have 30 years of full contributions, with 19 years left to contribute. Does that include 2018-19 ?

So am I GUARANTEED to get at least the £143.95 pw (plus indexing) if I do nothing, and stop work now? Yes.

As I said my plan would be to pay up any missing years to get to the full amount, but not yet, as anything could happen in the next 19 years!!! You have 19 years to get a further 7 so no point worrying about it yet.

* Just looked up my Contracted Out pension, and the current fund value is approx. £16,500 and it is predicting an annual pension of £388, so only £7.46 per week!! But that is from age 60, not 67.

..................................

Tom99

Sea_Shell wrote: »

Right then....Mine says.

Your State Pension forecast is £168.60 pw
Estimate based on your current NI = £143.95 pw
Forecast if you contribute another 7 years = £168.60 This is the most you can get.
COPE estimate = £19.88pw (yes, I have another pensions that should reflect this) *
I have 2 years where I didn't pay enough
I have 30 years of full contributions, with 19 years left to contribute.

So am I GUARANTEED to get at least the £143.95 pw (plus indexing) if I do nothing, and stop work now?

As I said my plan would be to pay up any missing years to get to the full amount, but not yet, as anything could happen in the next 19 years!!!

* Just looked up my Contracted Out pension, and the current fund value is approx. £16,500 and it is predicting an annual pension of £388, so only £7.46 per week!! But that is from age 60, not 67.

According to those figures an extra 5 yrs will get you to £168.04 and the 6th yr will add the last 56p taking you to £168.60. Not sure why it says you need 7yrs?

Sea_Shell

They're the as of end April 2019 figures. And yes, it's 6 years not 7 (that was last years figures). I'd printed last years forecast and then manually written 2019 figures on it, so i'd just missed that figure, sorry.

Dazed_and_confused

Yes you will get £143.95 (plus inflation uplifts).

As you are still working you will be building up another year already, depending on how far into the current tax you continue to be paid and how much you are earning you may add one more year now anyway or it could turn into a cheap year to complete with an additional payment in due course.

Sea_Shell

I get really confused about how/when I'd have paid enough NI for a qualifying year. I pay £21.26 pm currently, so by June's pay that'll be 3 months worth, in this tax year. Enough? Probably not!

xylophone

I get really confused about how/when I'd have paid enough NI for a qualifying year. I pay £21.26 pm currently, so by June's pay that'll be 3 months worth, in this tax year. Enough? Probably not!

https://forums.moneysavingexpert.com/discussion/comment/71234294#Comment_71234294

https://www.litrg.org.uk/tax-guides/employment/what-national-insurance-do-i-pay-employee

* Just looked up my Contracted Out pension, and the current fund value is approx. £16,500 and it is predicting an annual pension of £388, so only £7.46 per week!! But that is from age 60, not 67.

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 pension you get from your workplace or personal pension scheme for the periods you were contracted out, should include an amount that, in most cases, will be the equivalent of the additional State Pension you would have got if you had not been contracted out. This is your Contracted Out Pension Equivalent (COPE) amount.

We will not know the exact amount your scheme will pay you as a result of contracting-out as it will depend on the actual rules of your private scheme, and possibly any investment choices you may make.

fly-catchers

When you buy any years do you pay a lot less for the last year which might only give you pence?

molerat

fly-catchers wrote: »

When you buy any years do you pay a lot less for the last year which might only give you pence?

No. A year costs the same even if it only gives pence.