State pension letter

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.

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.

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.

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.

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.

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 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.

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!

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".

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, 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.

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

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.

Thanks for that M0nica that's very reassuring.

Genes wise its looking good - my mother and father passed away 80 and 87 respectively.

Lifestye wise = another matter; smoker and drink too much wine than is good for me as well.

Its funny, I've got a close friend, same age as me, who had been planning all her finances on the premise that she will not see 70, and I've told her more than once that she should think again as she could end up reaching 90 or more.

I may need to take my own counsel on this one.

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??

Artaylar A woman who is now aged 60 has a life expectancy of 25 years, that is you can reasonably expect to see your 85th birthday

Obviously I do not know whether you have any medical problems that may limit your life, nor can I see forward to check whether you will fall under a bus in 10 years time, but looking at the statistics, your chances of living beyond the age of 76 are pretty good.

Thanks so much for that Calliestemon

No, I'm not claiming any sort of benefits.

Thanks again for the advice

Artaylar if you are claiming any kind of benefit eg Jobseeker's Allowance, NI credits should be paid on your behalf.

My state retirement pension forecast is currently £28 pw short of the full pension.

I've got just over 7 years to go before I reach my state retirement age of 67. I havent worked for the past 2 years and the chances are I will not find another job before 67.

I'm very much in 2 minds about paying voluntary Class 3 NI contributions, which at the current time are £795.60 per year. Given that this £795.60 would buy me one year's full NI that would increase my pension by around £5 pw, I'm just wondering about the risks of not living long enough to break even, particularly if I opted to buy more than one years full NI.

So, lets say I opted to buy 3 years at a total of just over £2,386, I would have to live until 76 before breaking even. A difficult call and one that I'm still mulling over.

I'm grateful to have rediscovered this thread today. Thank you!

I got my confirmed pension amount yesterday, and honestly didn't look at the numbers that closely, as I have 40 years in.

I looked today, and it's £22 pw short ?

I've been into hmrc to look at my n.i., and I guess I could make up contributions for 2015-2016, as I retired early on health grounds in the 2014-2015 tax year.

I cannot work out whether paying for that year would make a significant difference, how much contributions are, and how to be sure I'm doing the right thing ?

The letter says additional contributions can be made up until 2013, so I'm setting it aside until after Easter.....?

I left full time work aged 58, and have been paying VCs quarterly since then. It costs roughly £200 every 3 months. I have a Gateway account, and can see each year how much my pension has grown. They credit the payments in April, and show you two bars - one with the maximum (predicted) pension in the year you'll retire, and the other with what you would get if you retired then on the contributions you have paid up to now. I can see that mine are equalising.

It is annoying, as I have over 40 years of contributions, but because of being opted out I had a shortfall, when a friend of mine who has never worked will get a full pension based on state credits made when her children were young, a few voluntary contributions and the new grandparent credits. It all seems so very unfair, but there is nothing I can do about that except continue to pay.

I do some consultancy work on a regular but ad hoc basis, and because I am still under State Pension age I pay NI on my earnings - I usually get paid in two months of the year. The voluntary contributions don't get reduced accordingly, though. There seems to be a flat rate, regardless of other payments.

It is good to watch the differential between the two bars decreasing though, and paying this way is psychologically easier than shelling out thousands of pounds in one go.

I wish I'd done it, Shandy.

My friend thinks I'm daft to have done it, she said to buy Premium Bonds.

Hi Shandy, it's all a bit confusing isn't it?

I'm looking to make further voluntary contributions before my state pension becomes payable.
As you say, with interest rates being so poor at the moment, it seems a good investment....on the premise of living long enough to benefit from it!

I wasn't happy with the people I spoke to at NI office Sundaze, when I rang to say I'd paid a lump sum and wanted to 'allocate' my years she said 'are you sure' - which threw me. They can't see our information which seems peculiar, obviously departments don't liaise.

I said I'd spoken to Future Pensions and they had informed me purchasing years from 2016 would increase my pension. I doubted myself initially, luckily I'd written it down. Any years purchased 2016 onwards will increase the pension by £5 per week. 20-21 purchase price is staying the same until 2022, I might buy one more year next March if I can save the money.