State pension forecast - will I get the headline figure from the state or is COPE deducted?

Modern

My husband and I are in our 50s and retirement planning. We have a spreadsheet.

When we each look at our state pension forecasts the figure headline is the £168.60.
Our actual to April 2019 is about £4 short of this per week. We have done 35 years and 36 years full contributions, some of this time we were contracted out.

Our COPE estimates on their page two are £22 and £65 for the two of us. I know we get these amount equivalents (or more) in our work pensions.

Will the state therefore pay out (say we stopped work in a year or two )

The equivalent of £168.60 - £22. ie £146.60
And £168.60 - £65 ie £113.60

Or will we each get the headline figure (which would be a double win)?

My husband is planning on working many more year and will keep contributing. Will this affect his state pension?

molerat

COPE is not deducted from the SP forecast amount, what you see is what you will get as long as you make the quoted future contributions if needed. COPE was only ever used to calculate your 2016 starting amount and is of no further relevance.

Modern

Thank you very much indeed for replying,
That is good news.
We will make up the extra £4 in this tax year and know that we have full pension entitlement when the time comes.

Dazed_and_confused

I know we get these amount equivalents (or more) in our work pensions.

Or less.

Out of interest what made you think the COPE amount was possibly going to be deducted from your forecast amount?

Tom99

Dazed_and_confused wrote: »

Or less.
Out of interest what made you think the COPE amount was possibly going to be deducted from your forecast amount?

Probably because of the confusing way in which a state pension forecast is set out.
COPE is an amount you are not going to get.

Modern

Tom99 is right - It is the way it is laid out. Also, I have heard some peoples’ forecasts are wrong so I thought I better check mine. My forecast mentions the COPE amount and I wondered about is as I will not be getting that contracted out equivalent in my state pension. I didn’t know if I would get the headline amount.

It seems I win both ways - I must have paid less NI but the state is still giving me the same as everyone else, and yet my few years as a Utility Worker, that final salary pension pre 1996 is a bit bigger for it.

Albermarle

I must have paid less NI but the state is still giving me the same as everyone else,

Not quite , as people who were never contracted out of SERPS and are qualified for full pension and SERPS, will receive a pension higher than the theoretical maximum £168.
Otherwise it would be unfair on those who never contracted out

Modern

Oh I see. But also if they weren’t contracted out they probably were not part of a final salary pension in that era.

Pensions are tricky.

I have another question. Who gets extra state pension if their spouse dies? Not the majority of folk I suppose?

westv

Albermarle wrote: »

Not quite , as people who were never contracted out of SERPS and are qualified for full pension and SERPS, will receive a pension higher than the theoretical maximum £168.
Otherwise it would be unfair on those who never contracted out

I thought £168 was the absolute maximum under the new rules.

molerat

westv wrote: »

I thought £168 was the absolute maximum under the new rules.

Not if you had already accrued more than that prior to 2016. The absolute maximum is £305.61.

p00hsticks

Modern wrote: »

I have another question. Who gets extra state pension if their spouse dies? Not the majority of folk I suppose?

No, not the majority of folk.

If both of the couple reached state pension age prior to 6/4/16 then one can inherit half of the others 'additonal' (SERPS / S2P) element of their state pension (if they have any).

https://www.gov.uk/additional-state-pension/inheriting