New state pension and COPE deductions

1235»

Comments

  • udlp
    udlp Posts: 3 Newbie
    Sorry to jump in. I need some help...
    I received a pension forecast back in November 2016
    My State Pension estimate : £113.24 a week in 2024 based on 24 qualifying years up to the tax year 2015/16 ( Starting amount for the New State Pension ) and a COPE estimate amount of £49.76.
    As I do not intend to make any further N.I. contributions, based on this estimate will I get a pension of 113.24 a week or 63.48 a week (113.24 - 49.76 COPE) ?
    Thank you
    Regards
    George
  • p00hsticks
    p00hsticks Posts: 12,765 Forumite
    First Post Name Dropper Photogenic First Anniversary
    udlp wrote: »
    Sorry to jump in. I need some help...
    I received a pension forecast back in November 2016
    My State Pension estimate : £113.24 a week in 2024 based on 24 qualifying years up to the tax year 2015/16 ( Starting amount for the New State Pension ) and a COPE estimate amount of £49.76.
    As I do not intend to make any further N.I. contributions, based on this estimate will I get a pension of 113.24 a week or 63.48 a week (113.24 - 49.76 COPE) ?
    Thank you
    Regards
    George


    £113.24 (in todays term - currently it increases by the triple lock each year until 2020).


    When you say that you do not intend to make any further NI contributions, is that because you are not working/claiming benefits?


    Are you aware that making voluntary Class 3 contributions for post-2016 years may be very good value if you have average life expectancy - current cost is around £740 for a year and this will increase you state pension by around £4.70 a week (up to the maximum £164.35)



    You can decide at a later date if this is worthwhile for you
  • Linton
    Linton Posts: 17,115 Forumite
    Name Dropper First Post First Anniversary Hung up my suit!
    udlp wrote: »
    Sorry to jump in. I need some help...
    I received a pension forecast back in November 2016
    My State Pension estimate : £113.24 a week in 2024 based on 24 qualifying years up to the tax year 2015/16 ( Starting amount for the New State Pension ) and a COPE estimate amount of £49.76.
    As I do not intend to make any further N.I. contributions, based on this estimate will I get a pension of 113.24 a week or 63.48 a week (113.24 - 49.76 COPE) ?
    Thank you
    Regards
    George


    You get £113.24 increased by any NI you have contributed since and the triple lock between Nov 2016 and now. The COPE was used to calculate the number. I guess that you have a mixture of contracted out and contracted in years.



    Note that you can buy extra class 3 NI years for about £760. Each year will give you about £4.70/week. It works out after 3.2 years receiving SP you will be making a profit. This is a extremely generous deal and one I suggest you take up.


    I suggest you get a new SP forecast so you are very sure about your current position.
  • udlp
    udlp Posts: 3 Newbie
    p00hsticks wrote: »
    £113.24 (in todays term - currently it increases by the triple lock each year until 2020).


    When you say that you do not intend to make any further NI contributions, is that because you are not working/claiming benefits?


    Are you aware that making voluntary Class 3 contributions for post-2016 years may be very good value if you have average life expectancy - current cost is around £740 for a year and this will increase you state pension by around £4.70 a week (up to the maximum £164.35)



    You can decide at a later date if this is worthwhile for you

    Thank you very much for the info. I´ll look into it.
    I retired recently in the Canary Islands at the age of 60 and I will not be working any longer :):):)
  • xylophone
    xylophone Posts: 44,322 Forumite
    Name Dropper First Anniversary First Post
    https://www.royallondon.com/global/documents/goodwithyourmoney/topping-up-your-state-pension-guide.pdf
  • udlp
    udlp Posts: 3 Newbie
    Linton wrote: »
    You get £113.24 increased by any NI you have contributed since and the triple lock between Nov 2016 and now. The COPE was used to calculate the number. I guess that you have a mixture of contracted out and contracted in years.



    Note that you can buy extra class 3 NI years for about £760. Each year will give you about £4.70/week. It works out after 3.2 years receiving SP you will be making a profit. This is a extremely generous deal and one I suggest you take up.


    I suggest you get a new SP forecast so you are very sure about your current position.

    Thank you very much for the info. I´ll look into it.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.1K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards