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  • FIRST POST
    • gwbuk
    • By gwbuk 10th Apr 16, 2:45 PM
    • 1Posts
    • 0Thanks
    gwbuk
    New state pension and COPE deductions
    • #1
    • 10th Apr 16, 2:45 PM
    New state pension and COPE deductions 10th Apr 16 at 2:45 PM
    The statement about the new state pension starting amount calculation seems pretty clear:

    > 1/35th of 155.65 for each qualifying year, up to a maximum of 35 years.

    In the guidance it then says

    > A deduction may be made for periods you were contracted out

    Again pretty straightforward. But take the case where you've got 45 qualifying years of which 10 were contracted out. Applying the above rules strictly would suggest 155.65 for a maximum of qualifying 35 years, then some deduction after that for the 10 years contracted out. This seems harsh as an alternative interpretation would be there are 35 years of full non contracted out years so you should get the full amount. Strict interpretation of the guidance suggest the former, but is correct?
Page 3
    • Dazed and confused
    • By Dazed and confused 15th Jan 18, 9:29 PM
    • 2,698 Posts
    • 1,307 Thanks
    Dazed and confused
    You should also be expecting a company pension of at least 71.54/week (more than likely a lot more than this) in addition to the 159.55.
    • udlp
    • By udlp 13th May 18, 10:44 AM
    • 3 Posts
    • 0 Thanks
    udlp
    Still confused
    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
    • By p00hsticks 13th May 18, 11:48 AM
    • 6,281 Posts
    • 6,773 Thanks
    p00hsticks
    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
    Originally posted by udlp

    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
    • By Linton 13th May 18, 12:03 PM
    • 9,401 Posts
    • 9,537 Thanks
    Linton
    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
    Originally posted by udlp

    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
    • By udlp 13th May 18, 1:11 PM
    • 3 Posts
    • 0 Thanks
    udlp
    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
    Originally posted by p00hsticks
    Thank you very much for the info. Ill look into it.
    I retired recently in the Canary Islands at the age of 60 and I will not be working any longer
    • xylophone
    • By xylophone 13th May 18, 1:12 PM
    • 25,737 Posts
    • 15,210 Thanks
    xylophone
    https://www.royallondon.com/global/documents/goodwithyourmoney/topping-up-your-state-pension-guide.pdf
    • udlp
    • By udlp 13th May 18, 1:12 PM
    • 3 Posts
    • 0 Thanks
    udlp
    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.
    Originally posted by Linton
    Thank you very much for the info. Ill look into it.
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