State pension letter

Because of the State Pension change in April 2016, any years purchased before this date do not add the same value to your pension.

Artaylar, if you purchased 3 additional years, your weekly state pension would increase by roughly £15, therefore the need to have received your state pension remains at 3 years to break even.

Fleur20, yes, the additional purchased contributions are treated the same way in regards to annual inflation as the remainder of your state pension.

Aaah, Sundaze yes, that's absolutely right. A case of acute brain fog on my part with this one.

Slinks back to the drawing board.

Artaylar

Fleur20

Would the £5 per week increase being discussed be ‘inflated’ by any % rise in State Pension in future years? Thus being better value for the initial lump sum you pay... or is my maths awry??

I think it probably would Fleur20 so that's another thing to factor in.

I can confirm this. I paid to plug a couple of holes and every year is treated the same. My whole pension has been increased no matter when they occurred or how they were "bought".

I have my state pension forecast..retiring at 66 in 2023...they have told me I have an amount of COPE (previous local government job) which will not affect my state pension forecast. How accurate is the forecast- is this amount guaranteed? The more I read about it the more confused I get!

I have my pension paid weekly. Don't know if it's an option nowadays. Thought it would save my children unnecessary angst from the department seeking any sort of repayment of overpayment should my demise be on an inconvenient date. Suits me fine.

You have the same retirement year as me Fleur20, I also have COPE. With the recent state pension changes in 2016 affecting so many of us (I was OK with 37 years on the old pre-16 system, if I'd been able to retire at 60), I'm taking my forecast with a pinch of salt.

I've got missing contributions too. A few years ago I got a statement outlining how much I needed to pay to make it up. As I had made contributions for part of one year I made that up to give me an extra £5pw but didnt make up the other years due to cost involved. However this thread got me thinking so I spoke to them again this week and found the amount to make up had increased considerably (I thought it was fixed). A nice guy at HMRC told me which year would cost me the least money and suggested I pay 3 years (around 2.5k) to give me an extra £15pw when I receive my pension. It seems a lot to pay at once but he said it's worth it. Hmm.

For anyone thinking about paying NI for years, 16-17 is currently £795.60, 17-18 is also £795.60, and for a reason I cannot fathom, 18-19 is £761.80. These three years will increase in price on 5 April 2021.

Year 19-20 is £780.00, and 20-21 is £795.60.

I've only paid for three as I need to do a bit more investigating on the tax I'll pay as I am very lucky and have my Teacher's/late husband's company pension.

My pension is affected by COPE. I get my pension in 2023 as well. I have got 37 years paid contributions. I have got my forcast, and I too am taking it as a pinch of salt.

On the website it is made very clear that there is no guarantee. The figures quoted are in line with current legislation, and may change.

Your state pension isn't affected by COPE rafichagran, it's only relevant to the private pension you were contracted out with.

I've also got 37 years but the changes in 2016 and new calculations had an effect on our starting point. Moneysaving expert has a lot of posts about it.