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Author Topic: State Pension Prediction Q  (Read 10575 times)
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« on: Tuesday, November 1, 2022, 12:15:34 »

When you look at the predicted pension amount online, does this mean you will get this in addition to COPE amount, or minus COPE amount.

https://www.gov.uk/check-state-pension

e.g.
IF cope amount is £40 p/w and your state pension prediction is £180

Does the government pay you £140 or £180. Its not overly clear.

I mean I'm proper fucked anyway so I guess it doesn't matter, its a few years into the future anyway,
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« Reply #1 on: Tuesday, November 1, 2022, 12:20:31 »

Not sure how old you are, I'm late 40's and have reached the conclusion that I am unlikely to get any form of pension from the state or I will not reach the age to receive it with the speed they keep whacking the age up.
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« Reply #2 on: Tuesday, November 1, 2022, 12:23:23 »

Well yeah, ditto. Very very very  late 40s

Was more an academic exercise after spotting something (that doesn't apply to me) on MSE
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Nemo
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« Reply #3 on: Tuesday, November 1, 2022, 12:25:47 »

COPE is contracting out stuff isn't it? I don't have anything like that and you should definitely get proper advice from someone who knows what they're doing, but my understanding from a limited amount of time working for a pensions company was that contracting out stuff was meant to fill a gap, so I'd be surprised if it took you over the "normal" entitlement.
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Bob's Orange
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« Reply #4 on: Tuesday, November 1, 2022, 12:38:43 »

There is a bit about Contracting out here. I should really know what it's about as I used to work for a pension company but I seriously either can't remember or wasn't paying a lot of attention! I think before 2016 you had the option to Contract out and have your National Insurance payments go into a personal or Stakeholder pension (from memory I think the most you could pay was £3,600). Apologies I can't be any more help!

https://www.gov.uk/contracted-out
« Last Edit: Tuesday, November 1, 2022, 12:42:08 by Bob's Orange » Logged

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« Reply #5 on: Tuesday, November 1, 2022, 12:45:50 »

it contracting out where part of the then SERPs was paid into a private pension, SERPs is long gone (2016) and  I assume COPE will be a deduction from the predicted amount should I not get the full 35 years.. But it's not as clear as it could be!

what confused me when looking for the answer was this;

Quote
To clarify, your COPE is not deducted from the State Pension figure shown in your personal State Pension forecast.

It is simply provided as an indication of the additional retirement income you may receive in retirement from your Contracted Out plan.

which seems odd, but isn't Government official

https://www.theprivateoffice.com/pensions/state-pensions

made me wonder if the ni I did pay was still enough to qualify. but idk
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« Reply #6 on: Tuesday, November 1, 2022, 13:02:44 »

Surely your state pension is paid in full regardless of any extra private pensions.
I drew what little I had in a private pension and still get the full current pension amount,  only difference is you would probably have to pay tax on the private pension.
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« Reply #7 on: Tuesday, November 1, 2022, 13:32:09 »

Sorry, to clarify, before 2016 in state terms:
   - There was a basic pension
   - There was a second part, State Earnings related pension scheme  (SERPS)

You paid into both parts.

However there was an option to "contract out" paying into SERPS. Instead the money that went into SERPS Government pot went into the your own private pension instead. So the Government got less from you if you were contracted out.

The question I'm asking is whether this "contracted out" amount is effectively "clawed back" when it comes to your sate pension when you retire. This could be done by reducing your state pension by a weekly amount equivalent to the contracted out amount (COPE).

You will of course get whatever you are due in your private pension.
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« Reply #8 on: Tuesday, November 1, 2022, 13:43:05 »

No,  that is what I am saying,  your state pension is your state pension regardless.  Presuming of course you have made sufficient contributions.   I was in the same scenario as you and I still get my full pension.
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« Reply #9 on: Tuesday, November 1, 2022, 13:57:06 »

ah, thanks!
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tans
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« Reply #10 on: Tuesday, November 1, 2022, 14:51:04 »

As said earlier, not expecting anything. Nice to know my money is being put to good use for the future
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« Reply #11 on: Tuesday, November 1, 2022, 16:42:43 »

Thanks again Maniac, I found out COPE was only used in evaluation for the 2016 change to the new scheme and is exactly as you said.

@Tans, if we run out of state pension money my retirement plan is to keep working. My private pension is currently above the national average, but nowhere near enough to live off come retirement age. And there will be people worse off. Blimey.

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« Reply #12 on: Tuesday, November 1, 2022, 17:05:45 »

Having retired a few years back I tried to walk across this minefield! I contracted out and therefore was not entitled to the full state pension. The other difference was I had to ensure I had paid my NI contributions for 40 years not 35 years. (This difference often confuses people) As I decided to take early retirement I had a shortfall in my number of “qualifying years” to enable me to receive my full entitlement. Just to add this was not the same as a full state pension because I continued to contract out.
The other thing worth checking as the Government info that I read at that time failed to mention I needed to pay my NIC’s for 40 years up to my actual retirement date. So it’s 40 years going backwards from your retirement date. I actually had more than 40 years contributions but I had to make contributions up to the day I actually retired. Hence I made some AVC’s to ensure I receive my full entitlement but I still don’t get a full pension as I contracted out as mentioned above.
My advice is find yourself a good independent Financial Advisor plus things may have changed since I went through the minefield.

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« Reply #13 on: Tuesday, November 1, 2022, 17:33:21 »

At the time i was contemplating retirement  (I was self employed), my accountant told me it was better to have underpaid on NHI contributions as any amount you needed to ensure you got the full pension could be paid after retirement whereas if you had more than the necessary contributions you didn’t get them back,  may have changed since then but not to my (limited !!) knowledge.
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« Reply #14 on: Tuesday, November 1, 2022, 17:35:56 »

As said earlier, not expecting anything. Nice to know my money is being put to good use for the future
Thanks mate !!.
P.S.   Can I have an increase next year please as my season ticket is sure to go up.
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