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Originally Posted by blimey
(Post 9728938)
jonw66
As I understand it (though I may be wrong): preserved pension increases: https://www.gov.uk/government/public...-increase-2017 Yes I think its the original documents that are not very well worded. It says nothing about any increases between end of service and retirement. Cheers Jon |
However, I went on the DWP site and it gave me a forecast of £157.15 at age 68 with no mention of COPE.
My NI history shows 40 years of contributions with 32 of those (82 - 2014) in the RAF with no indication of reduced payments or being opted out. Confused? I am. |
Originally Posted by [email protected]
(Post 9729019)
However, I went on the DWP site and it gave me a forecast of £157.15 at age 68 with no mention of COPE.
My NI history shows 40 years of contributions with 32 of those (82 - 2014) in the RAF with no indication of reduced payments or being opted out. Confused? I am. The page where the forecast is shown if you scroll down the page I think that is where you click on another link which shows your COPE deductions. Best Jon |
Originally Posted by [email protected]
(Post 9729019)
However, I went on the DWP site and it gave me a forecast of £157.15 at age 68 with no mention of COPE.
My NI history shows 40 years of contributions with 32 of those (82 - 2014) in the RAF with no indication of reduced payments or being opted out. Confused? I am. I'm in a very similar position. I have seen my forecast numerous times. Go onto the Gov. web site and in big figures it gives me a forecast of £157.15. However, as Jon says, there is a link at the bottom of the page. It reveals my COPE is £65 per week. Like so many things this, and past governments have done, it's all smoke and mirrors. |
Originally Posted by Tocsin
(Post 9725425)
The COPE is a frightener, but as I understand it, you won't get less than the amount the 'old' state pension would have delivered, so it's more like £155 -90 (ouch!) but back to £119 (whew!).
@Al - is this right? So my state pension is worse off by about £36 pw, as a result of contracting out, but my workplace pension is better off by an estimated COPE £101 pw. Edited to add: Notwithstanding, I find the gov.uk pension forecast site rather misleading. The splash message is that my forecast is £155 - only in the smaller print below does it mention that that is based on me continuing to contribute. |
Agreed!
The £155 is mentioned three times, in bigger letters & in colour. My actual amount is less, mentioned once, smaller & in B&W! I will be contributing 2.5 years at £733 p.a. and grateful for it! lsh :E |
In my view, buying extra years these days is a gamble. In recent years the Gov has; delayed the pension for Females by 5+yrs, further delayed the pension for everyone, increased the qualifying years to 35, replaced RPI with CPI and is readily talking of "options" for future pensions. I think that the State pension will become less,.. even means tested! :oh:
OAP |
OAP, to an extent the pension is already means tested. Your tax free sum is reduced by your OAP. Your pensions and pay taxed at 20% is also capped so that you pay a marginal tax at 30% before you reach the 40% limit.
Politically they say your pension is not taxed as it was taxed as you paid in whereas your other pensions were tax free going in, so there is a certain logic there. |
Yes, I should have looked at the COPE link at the bottom of the page where it says £67.50.
It seems they are saying that your workplace pension is supposed to cover the shortfall in your state pension but it is a bit vague about it. However, since I intend to continue paying NI, every year I pay non-contracted out NI after 2016 adds another £4.45 to my state pension so at age 56 (now) if I keep working to age 68 then my state pension should be increased by £53.40 so I won't be far off the full amount if and when I get there! |
Jo Cumbo, in this morning's FT, reporting another serious murmuring about the state pension becoming means tested. This link may work: https://www.ft.com/content/bd358400-5a77-11e7-b553-e2df1b0c3220 .
If it comes to pass, we'd probably all be very very glad indeed that we contracted out.. wouldn't we? One of the more extreme options outlined in the report is to keep the state pension age at 65 and pension costs per worker at an annual £2,500. This would see means-testing begin for those with an annual income of £30,000 or more. A compromise would be to means test the state pension gradually for higher-rate taxpayers from 2019. Initially they would give up only £1 of state pension for every £10 of income received over the higher band threshold. After 10 years, this ratio would be reduced to 1:1. “This would result in much slower state pension age rises, with a state pension age of 66 by 2030 and 67 being reached in 2035, then 68 in 2045, but with no further rises required until 2054,” Prof Sweeting said. The government is yet to publish its response to last year’s pension age review, after missing a legal deadline of May 7. On Monday, the Department for Work and Pensions said it was still reviewing evidence submitted for the state pension age review and a decision would be taken in due course. Earlier this year, the OECD said the UK should not give a state pension to the rich and should instead use the money to boost payments to the poor. |
Read this a couple of times now and still am not sure I get it. I have a forecast that says £159.55 per week with a COPE of £108.02 per week.
So what do I get in my sticky mit? £51.53 from the state in one payment and then £108.02 from my employer? Nothing from my employer? £159.55 from the state of which my employer has made up £108.02? Confused..... |
Originally Posted by Background Noise
(Post 9729186)
No, I don't think that is right. As I understand it, COPE is not something that is taken away from your state pension - it is the additional amount your workplace pension will pay by virtue of having been contracted out, over what it would have paid had you been contracted in.
I hope! CG |
Originally Posted by Al R
(Post 9813463)
Jo Cumbo, in this morning's FT, reporting another serious murmuring about the state pension becoming means tested.
If it comes to pass, we'd probably all be very very glad indeed that we contracted out.. wouldn't we? OAP |
Originally Posted by charliegolf
(Post 9813643)
Correct, according to an actual, real DWP person I spoke to. COPE is a notional figure, payable by someone other than DWP. In my case, Teachers' Pensions pay my COPE portion. TP's view is that, "We do, but it's not an extra £x per month, it's £x that's included in your pension already."
I hope! CG |
Originally Posted by charliegolf
(Post 9813643)
Correct, according to an actual, real DWP person I spoke to. COPE is a notional figure, payable by someone other than DWP. In my case, Teachers' Pensions pay my COPE portion. TP's view is that, "We do, but it's not an extra £x per month, it's £x that's included in your pension already."
I hope! CG |
wub,
Are you sure it is £159 or is there some killer small print lower down? The headline rate looks great, but I actually only get £122 - because we were contracted out. So, as I understand it, i am £37pw worse off in my state pension by being contracted out but £101pw (the COPE) better in my workplace pension than that would have been had we been contracted in. But yes, whatever figure is on the forecast is paid by the state at whatever age you need to be to get it - for me it is 66. |
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BN:\
Sorry but you have confused me further. You say you get £122 because of being contracted out, but later say whatever figure is on the forecast is paid by the state. My headline amount is the same as yours. I am 63 with over 45 years NI contributions and was contracted out in the RAF and in my final salary scheme. My COPE amount is given as £68.94 per week and I can claim my State Pension in July 2019. I've just checked my forecast again and it says this: "Your COPE estimate is £68.94 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" This implies I will get the full £159.55 from the government (I think?) |
I guess so, if you don't have the box that I have which specifies a lower amount. I assume you have enough full years, in addition to your RAF contracted out time, to earn you the full state pension.
Yes, the forecast is for the state pension only. The COPE amount is included within your workplace/employer pension. |
Thanks BN, not very straightforward is it?
Thanks too yellowtriumph |
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