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    • surfdude59
    • By surfdude59 8th Mar 18, 1:03 PM
    • 3Posts
    • 1Thanks
    surfdude59
    New State Pension
    • #1
    • 8th Mar 18, 1:03 PM
    New State Pension 8th Mar 18 at 1:03 PM
    Hi, I'm 59 and have been in employment for all of my working life and have a Final Salary pension from my previous employer from 1996 to 2014. I'm now in a work pension but not final salary. I'm planning retirement in the not too distant future but wanted to check my State Pension on the Gov.uk web site to see what I would be due when i reach 66. Because I was Contracted out it appears there is a reduction in my State Pension and the forecast on Gov.UK gives me a COPE of £98 per week!!!! Does this mean I'll only get a State Pension of circa £40 per week? Seems a tad unfair that despite putting in all this money over the years the State will only pay me £40 a week. Does this sound right? Confused!!!
Page 1
    • dunstonh
    • By dunstonh 8th Mar 18, 1:13 PM
    • 92,556 Posts
    • 59,837 Thanks
    dunstonh
    • #2
    • 8th Mar 18, 1:13 PM
    • #2
    • 8th Mar 18, 1:13 PM
    Does this mean I'll only get a State Pension of circa £40 per week?
    Unlikely. You haven't said what your state pension projection figure is though.

    Seems a tad unfair that despite putting in all this money over the years the State will only pay me £40 a week.
    They tell you on the projection what you are on track for and what you have accrued to date. You havent mentioned that figure. What was it?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Linton
    • By Linton 8th Mar 18, 1:16 PM
    • 9,373 Posts
    • 9,505 Thanks
    Linton
    • #3
    • 8th Mar 18, 1:16 PM
    • #3
    • 8th Mar 18, 1:16 PM
    The COPE number is for information only. It is used in the calculation of the SP value stated on the Forecast.
    • surfdude59
    • By surfdude59 8th Mar 18, 1:41 PM
    • 3 Posts
    • 1 Thanks
    surfdude59
    • #4
    • 8th Mar 18, 1:41 PM
    • #4
    • 8th Mar 18, 1:41 PM
    It says I'm on track for £130.26 today but if I continue for another 7 years I'll be on track for £155 a week. That's why I'm confused because it then tells me the COPE is £98 per week which intimates that this is deducted!
    • Linton
    • By Linton 8th Mar 18, 1:51 PM
    • 9,373 Posts
    • 9,505 Thanks
    Linton
    • #5
    • 8th Mar 18, 1:51 PM
    • #5
    • 8th Mar 18, 1:51 PM
    It says I'm on track for £130.26 today but if I continue for another 7 years I'll be on track for £155 a week. That's why I'm confused because it then tells me the COPE is £98 per week which intimates that this is deducted!
    Originally posted by surfdude59
    It already has been deducted as part of the calculation. I would guess that as well as a deduction for COPE you also have a significant amount of SERPS/S2P from when you were contracted in which would increase the forecast.
    • Silvertabby
    • By Silvertabby 8th Mar 18, 1:52 PM
    • 2,715 Posts
    • 3,875 Thanks
    Silvertabby
    • #6
    • 8th Mar 18, 1:52 PM
    • #6
    • 8th Mar 18, 1:52 PM
    It says I'm on track for £130.26 today but if I continue for another 7 years I'll be on track for £155 a week. That's why I'm confused because it then tells me the COPE is £98 per week which intimates that this is deducted!
    Originally posted by surfdude59
    Forget the COPE. It was just used to determine your foundation amount.

    If you work for another 7 years, then you'll get the maximum State pension PLUS your contracted out occupational pension.
    • dunstonh
    • By dunstonh 8th Mar 18, 2:20 PM
    • 92,556 Posts
    • 59,837 Thanks
    dunstonh
    • #7
    • 8th Mar 18, 2:20 PM
    • #7
    • 8th Mar 18, 2:20 PM
    It says I'm on track for £130.26 today but if I continue for another 7 years I'll be on track for £155 a week. That's why I'm confused because it then tells me the COPE is £98 per week which intimates that this is deducted!
    Originally posted by surfdude59
    You are a winner on the new state pension.

    £130.26 is what you have currently built up. In 7 years, you will hit the maximum of £155.

    So, you have all the benefit of contracting out over those past years without any hit in in your state pension.

    The COPE figure is an indication of what the cost of your contracting out has been. It is often misunderstood. However, it is not a figure you deduct from the projections.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • surfdude59
    • By surfdude59 8th Mar 18, 3:35 PM
    • 3 Posts
    • 1 Thanks
    surfdude59
    • #8
    • 8th Mar 18, 3:35 PM
    • #8
    • 8th Mar 18, 3:35 PM
    Thank you so much, that's a weight off my mind now.
    Appreciate it
    Cheers
    • xylophone
    • By xylophone 8th Mar 18, 4:34 PM
    • 25,370 Posts
    • 14,966 Thanks
    xylophone
    • #9
    • 8th Mar 18, 4:34 PM
    • #9
    • 8th Mar 18, 4:34 PM
    If you decide to stop working at age 60 say and thus are no longer paying NI, you can make voluntary contributions.

    See
    https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf
    • Audaxer
    • By Audaxer 8th Mar 18, 5:09 PM
    • 1,039 Posts
    • 600 Thanks
    Audaxer
    Even if you were to retire now it would still be worth making voluntary NI contributions of £741 per year for the next 7 years to take you up to the maximum State Pension, as you would recoup the extra money paid after around 4 years of receiving the pension.
    • p00hsticks
    • By p00hsticks 8th Mar 18, 6:03 PM
    • 6,184 Posts
    • 6,596 Thanks
    p00hsticks
    If you work for another 7 years, then you'll get the maximum State pension PLUS your contracted out occupational pension.
    Originally posted by Silvertabby
    You are a winner on the new state pension.

    £130.26 is what you have currently built up. In 7 years, you will hit the maximum of £155.
    Originally posted by dunstonh
    Being slightly pedantic, but the current maximum is £159.55, so the OPs forecast suggests that they are going to finish up with slightly less than the maximum if they continue to contribute for the next 7 years until state Retirement Age.

    They're still one of the winners from the recent changes though.....
    • capital0ne
    • By capital0ne 8th Mar 18, 7:08 PM
    • 466 Posts
    • 232 Thanks
    capital0ne
    Even if you were to retire now it would still be worth making voluntary NI contributions of £741 per year for the next 7 years to take you up to the maximum State Pension, as you would recoup the extra money paid after around 4 years of receiving the pension.
    Originally posted by Audaxer
    Whatever you do, if you have any NI gaps pre 2016 DO NOT fill them, only fill gaps post 2016
    • Jerben
    • By Jerben 8th Mar 18, 7:34 PM
    • 62 Posts
    • 27 Thanks
    Jerben
    Being slightly pedantic, but the current maximum is £159.55, so the OPs forecast suggests that they are going to finish up with slightly less than the maximum if they continue to contribute for the next 7 years until state Retirement Age.

    They're still one of the winners from the recent changes though.....
    Originally posted by p00hsticks
    I'm assuming the '£155' is a mistake and the OP has 7 future available years.
    130.26 + (7 x 4.56) = £162.18


    So, (barring typo's and approximations), the OP will get to the maximum of £159.55 after 7 extra years.
    Last edited by Jerben; 08-03-2018 at 7:37 PM. Reason: corrected to 159.55
    • badmemory
    • By badmemory 8th Mar 18, 9:21 PM
    • 1,600 Posts
    • 2,098 Thanks
    badmemory


    So, (barring typo's and approximations), the OP will get to the maximum of £159.55 after 7 extra years.
    Originally posted by Jerben
    There may be a problem with that depending on the date (within the tax year) the OP reaches state pension age. As in birthday on 4th April 2020, means all payments from 6th April 2019 to 4th April 2020 do not make a qualifying year!
    • kidmugsy
    • By kidmugsy 8th Mar 18, 9:43 PM
    • 10,512 Posts
    • 7,207 Thanks
    kidmugsy
    Why can't HMG rise to the elementary challenge of wording such stuff so that the layman can understand what he's reading? It is, to use a much misused word, a scandal that people like the O/P get a fright from such obscure phrasing.
    Free the dunston one next time too.
    • badmemory
    • By badmemory 9th Mar 18, 12:32 AM
    • 1,600 Posts
    • 2,098 Thanks
    badmemory
    Why can't HMG rise to the elementary challenge of wording such stuff so that the layman can understand what he's reading? It is, to use a much misused word, a scandal that people like the O/P get a fright from such obscure phrasing.
    Originally posted by kidmugsy
    That would assume that HMG actually want the layman to understand what he's reading. I believe they don't and they do actually want to scare that layman into paying for something which will be of no benefit. It is only since people have actually realised that they are paying extra for absolutely nothing even when advised to that they have finally agreed to refund. HMRC/DWP have become at times as bad as scam sites for extracting money for nothing.
    • p00hsticks
    • By p00hsticks 9th Mar 18, 8:25 AM
    • 6,184 Posts
    • 6,596 Thanks
    p00hsticks
    Why can't HMG rise to the elementary challenge of wording such stuff so that the layman can understand what he's reading? It is, to use a much misused word, a scandal that people like the O/P get a fright from such obscure phrasing.
    Originally posted by kidmugsy
    To be fair, I can't remember the exact wording of the pension forecast statements but I recall it as being pretty clear - something along the lines of - your current state pension entitlement is £xxx.xx and you can increase this to £xxx.xx by obtaining a further x NI years between now and reaching state retirement age on DD/MM/YY.

    Then there's a mention of COPE, which I don't think used to be there but people complained that DWP weren't being transparent by not mentioning it so it was added - they can't win really.
    • Jerben
    • By Jerben 9th Mar 18, 8:52 AM
    • 62 Posts
    • 27 Thanks
    Jerben
    There may be a problem with that depending on the date (within the tax year) the OP reaches state pension age. As in birthday on 4th April 2020, means all payments from 6th April 2019 to 4th April 2020 do not make a qualifying year!
    Originally posted by badmemory
    That's one of the reasons why my post mentioned assumptions, typo's and approximations.
    The OP did mention '7 years' so I 'assumed' that was directly from the forecast.
    If you know the system and have the exact wording of the forecast, and full details of the individual, it's all fairly clear!
    The problem is most of the public don't have all of these and its not exactly helped by the forecast wording.
    One can only DYOR and this is an excellent place to start! (Thanks to all posters!)
    • saver_ali
    • By saver_ali 9th Mar 18, 6:03 PM
    • 19 Posts
    • 3 Thanks
    saver_ali
    Like the OP, I couldn't figure out whether to deduct the COPE figure from my state pension forecast, even after a couple of hours of internet research this afternoon! Thank you to the people on this forum who have clarified that I don't!
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