tax years which will increase state pension

robrit61

Hi Guys,

I have just looked at my wife's NI record and state pension forecast. She needs to buy one more year to get her full state pension.
She has 7 payable gaps including 2020-21 which will cost £795.60 but I notice the system is also saying 2015-16 is "year not full" at only £142.65
I seem to remember that there is a point at which paying off gaps will make no difference to her pension. i think this was 2016 ?
So will paying for 2015-16 tax year make any difference to her ? 

Thanks

p00hsticks

It very much depends on her individual record. 

If she currently has less that 30 full years prior to April 2016 then buying that year will increase her amount (although not necessarily by the same amount as for post-2016 years), if she has 35 or more pre-2016 already then it definitely won't and if 30-34 the answer is 'it depends'.  If you provide the full details of what her forecast says and the NI years she has then someone (probably @molerat or @xylophone) will be able to tell you for definite if that 2015-16 year is worth buying or if you need to get a post-2016 year. 

Rodders53

This is a 'call Future Pensions' for accurate advice situation --- it's precisely what they are for.  https://www.gov.uk/future-pension-centre

Although will extra info the two named forum members can do the same, based on what you say, rather than the Govt. records...

robrit61

Yes I'll get her to call the future pensions centre. I just thought it would be good to understand it a bit better first. 

molerat

If you post up the following details you will get the answer from us in a couple of minutes.

Current weekly £££.pp amount accrued up to April 2023 or 2024, some have been updated so please specify.
Number of pre April 2016 NI years full
Number of post April 2016 NI years full
Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme", if there is one.

robrit61

Estimate based on NI Record to 5 April 2023 is £217.74 per week
Number of pre April 2016 years in full Is 39
Number of post April 2016 years in full Is 1

I can't see any way to check for Cope ? Has anyone any idea where that can be found ?

molerat

robrit61 said:

Estimate based on NI Record to 5 April 2023 is £217.74 per week
Number of pre April 2016 years in full Is 39
Number of post April 2016 years in full Is 1

I can't see any way to check for Cope ? Has anyone any idea where that can be found ?

Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme", if there is one.

It will definitely be there as she would otherwise already have a full pension.

From the information you have now provided COPE is not relevant to the question in hand.  As she already has in excess of 35 pre 2016 years adding more cannot add to her pension amount,  only post 2016 gaps are viable so the best option is for that cheapest post 2016 year which will add £3.46 to her pension.

robrit61

Yes I've found the reference to COPE. It says

Contracted Out Pension Equivalent (COPE)

Your COPE estimate is £35.31 a week

This will not affect your State Pension forecast. The COPE amount is paid as part of your other pension schemes, not by the government.

In most cases the private pension scheme you were contracted out to:

• will include an amount equal to the COPE amount
• may not individually identify the COPE amount

The total amount of pension paid by your workplace or personal pension schemes will depend on the scheme and on any investment choices.

robrit61

molerat said:

robrit61 said:

Estimate based on NI Record to 5 April 2023 is £217.74 per week
Number of pre April 2016 years in full Is 39
Number of post April 2016 years in full Is 1

I can't see any way to check for Cope ? Has anyone any idea where that can be found ?

Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme", if there is one.

It will definitely be there as she would otherwise already have a full pension.

From the information you have now provided COPE is not relevant to the question in hand.  As she already has in excess of 35 pre 2016 years adding more cannot add to her pension amount,  only post 2016 gaps are viable so the best option is for that cheapest post 2016 year which will add £3.46 to her pension.

OK so I think I'm correct in saying that paying for the year 2015-16 will make no difference ? It's a pity because she is being quoted only £142.65 for that year whereas the cheapest year following that is 2020-21 @ £795.60
Still probably worth doing though.

Dazed_and_C0nfused

robrit61 said:

molerat said:

robrit61 said:

Estimate based on NI Record to 5 April 2023 is £217.74 per week
Number of pre April 2016 years in full Is 39
Number of post April 2016 years in full Is 1

I can't see any way to check for Cope ? Has anyone any idea where that can be found ?

Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme", if there is one.

It will definitely be there as she would otherwise already have a full pension.

From the information you have now provided COPE is not relevant to the question in hand.  As she already has in excess of 35 pre 2016 years adding more cannot add to her pension amount,  only post 2016 gaps are viable so the best option is for that cheapest post 2016 year which will add £3.46 to her pension.

OK so I think I'm correct in saying that paying for the year 2015-16 will make no difference ? It's a pity because she is being quoted only £142.65 for that year whereas the cheapest year following that is 2020-21 @ £795.60
Still probably worth doing though.

Definitely worth doing.

£795 outlay.

£180 return in year one.

£180+ triple lock increases in year two.

And so on potentially for 30+ years.