State Pension plus Works Pension

eastcorkram

I wouldn't put too much faith in that personal state pension forecast. I certainly don't believe mine. If it turns out to be correct, then all well and good.

xylophone

I was surprised to see that my state pension forecast showed that I would have full contributions at age 65

What exactly does your forecast say?

Is a COPE shown?

At 6.4.16 you had 22(?) full NI years?

22/30 x £119.30 + (SERPS/S2P - deduction for contracting out)

(22/35 x £155.65) - COPE.

Your "starting amount" was the higher of the two.

You started in LGPS in tax year 98/99?

SERPS was replaced by S2P in 2002/3.

S2P provided some additional pension to low/moderate earners even though contracted out.

Contracting out for DB schemes ended 6/4/16.

Full years 6/4/16 will increase your "starting amount" up to a full state pension.

https://www.royallondon.com/media/good-with-your-money-guides/the-new-state-pension-your-questions-answered/

xylophone

lived abroad for around 13 years

Any right to state pension?

https://www.gov.uk/new-state-pension/living-and-working-overseas

Durban

xylophone wrote: »

What exactly does your forecast say?

Is a COPE shown?

At 6.4.16 you had 22(?) full NI years?

22/30 x £119.30 + (SERPS/S2P - deduction for contracting out)

(22/35 x £155.65) - COPE.

Your "starting amount" was the higher of the two.

You started in LGPS in tax year 98/99?

SERPS was replaced by S2P in 2002/3.

S2P provided some additional pension to low/moderate earners even though contracted out.

Contracting out for DB schemes ended 6/4/16.

Full years 6/4/16 will increase your "starting amount" up to a full state pension.

https://www.royallondon.com/media/good-with-your-money-guides/the-new-state-pension-your-questions-answered/

Definitely no right to SP whilst living abroad for 13 years.

24 years of full contributions ( this will include 2 years credit aged 16-18)

14 years left to contribute before April 2033

13 years when you did not contribute enough ( abroad )

Tells me that I will get £168 per week if I carry on contributing for the next 14 years and tells me that is the most that I will get.

Tells me that I was contracted out and COPE estimate is £17.59 per week and that it will not affect my SP forecast and that the COPE amount is paid as part of
your other pension schemes. I don't really understand this bit.

Does this mean that if I carry on paying for the next 14 years that I will get the full state pension?

Dazed_and_confused

Based on your post then yes, if you earn enough in each year to make it a qualifying year then you will get the £168.60

You haven't actually told us what your current entitlement is but presumably between £101 and £106 so year 14 may only add a penny. Or it could be worth £4.80.

You presumably have a company pension, that is what the COPE bit relates to. Most people will get more than the COPE figure from their company pension but that's not guaranteed and the company will just pay what you are entitled to, you won't see any reference to COPE from them.

german_keeper

Following the changes to Civil Service pensions a few years ago, prior to which retiring at 60 was a fairly straight forward issue for me I was left trying to formulate a strategy to still go at 60. I tried gov.uk, googling state pension and the like and was quite flummoxed. But thanks to many well informed posts and posters on here I now have a much better grasp. The relevant points for me are as follows (I think).

1. The whole COPE thing is a bit of a red herring. It isn't deducted from state pension and the real value is just to confirm you have been contracted out at some point.
2. You need 35 years of full conts, either contracted in or out.
3. Before 2010 you got full contracted in conts in sixth form/college but not in Uni.
4. And this was the biggie for me. For those contracted out throughout their career, start from a base of £120 or so, add £4.82 (ish) per week for each year contracted in and the maximum is £168.60. Contracted out finished in 2015/16. So when I count the 2 years in sixth form and each year since 15/16 and add £4.82 for each year since then it matches my state pension forecast and I will have qualified for the full amount when I am 59.

The advice on here has been a godsend for me and I now rest much easier at night!!

Dazed_and_confused

2. You need 35 years of full conts, either contracted in or out.

Only if you are young, starting on your State Pension journey from April 2016. Everyone else is under transitional rules. Could be 35 years but that would be coincidence.

german_keeper

Thanks, didn't pick up on that. It was all the transitional stuff that threw me in the first place. Just been back to my forecast (like visiting an old friend) and I have 39 years full conts. So it will be 43 in 4 years time but the key for me is I will have sufficient contracted back in.

jamesd

nigelbb wrote: »

What was the rate of pension accumulation with SERPS? Apparently there must have been an upper earnings limit.

The link from xylophone does a good job explaining. It's not strictly accurate but if you think of the limit being where higher rate tax started for both SERPS and S2P you'll have the right general idea.

jamesd

german_keeper wrote: »

Thanks, didn't pick up on that. It was all the transitional stuff that threw me in the first place

On the "bright" side, we'll be able to stop writing about old rules and transitional arrangements about 55 years from now. When the last 16 year old who first paid NI in 2015-16 and had an old rules calculation greater than new rules reaches their state pension age. Though I don't think 16 is really the youngest possible.