State pension query

ampa1

I am due to get my state pension in 2024 and have 44 years of full NI contributions. My pension forecast says that I won't get the full state pension unless I contribute for another two years. Can someone explain why this is as I thought it was between 35 and 44 years contributions to get the full state pension. I have worked all my life and I haven't opted out and only have 4 years of no contributions when I was a student but have still paid NI for 44 years. I have colleagues who retired early, some of them due to ill health, who don't have as many as 44 years contributions and they are forecast to receive the full state pension. I'm confused 🙄

xylophone

See

https://forums.moneysavingexpert.com/discussion/comment/79873151/#Comment_79873151

molerat

To have 44 years and not reached the full amount means you must have been contracted out.  Does your forecast show a COPE amount ? - near the bottom of the page there will be a satement " You were in a contracted out pension scheme"

Steve_666_

When SERPS were first introduced, I was working for a Life Assurance company, the advice was to contract out and at a later date contract back in. At some point, I got a letter advising to contract back in, I think I did. Does anyone understand this and its implications, my pension forecast shows a figure substantially higher than the current NSP of £185

ampa1

Thanks. I've just looked again and it does say I was contracted out (COPE). I had no idea. How can this happen without me knowing? 😡 What does this mean and how do I find out how much I need to pay to get back on track?

molerat

Post up your full forecast, it is pretty straightforward with all the details.

Current amount accrued up to April 2022
Number of pre 2016 years full
Number of post 2016 years full
Financial year you reach state retirement
Any COPE amount shown
Years which show not full and prices

ampa1

Thanks. It does say it won't affect the state pension so I'm hoping that is the case. I'm now going to read up about COPE and see what I need to do. It's all so confusing!

Steve_666_

The provided forecast figure, it says doesnt include the COPE, but in my forecast it would make more sense if ir did?

JGB1955

Steve_666_ said:

The provided forecast figure, it says doesnt include the COPE, but in my forecast it would make more sense if ir did?

The COPE figure doesn't decrease the amount of forecast State Pension (if that's what you were fearing). 

Steve_666_

Found my contracted out info, seems I have 25 years for SERPs and SSP, plus years 2016-23, but I still dont see how it gets above the £185 pw

pinnks

At April 2016 everyone with a NI record was transferred from the old rules to the new by looking at what they would get under the old rules (basic pension plus any additional pension from SERPS etc) and what they would get under the new (new state pension less an amount called COPE if you were contracted out). The higher amount is your starting amount for 2016/17 onwards.  If that was higher than the nSP max (currently £185.15) then the excess, represented by your SERPS etc is called a "protected payment" and is paid alongside your nSP.  So, you have the max nSP of 185.15 plus whatever is the excess over that as your protected payment.