State Pension Forecast confusion

Thank you Floradora9 - didn’t know about NI credits for caring for elderly parents before but will now be applying.

I had a pension forecast similar to that . This COPE thing is a bit odd.

I have NEVER ( I use capitals to emphase that) been contracted out. I have never had a pension other than my state one . I have never paid into anything else at all.

I have a statement on my pension that I have a COPE of 94 pence ( yes pence) . I don't know where it is from. But I am a few years away from retiring thanks to the government so I am not going to moan and question it right now.

Havent got a clue where this bunch get their figures from.

Just give them a ring I did yesterday on a pension issue I had and they were very helpful.

You can claim credits if you look after elderly patents as well .

I don’t think it’s well publicised at all, Telly, but claiming the credits is easy enough. Pensions are such a minefield.

Magiemaybe - that's useful information, never heard of this type of credit - could be really useful for people who are short of some years

You have inspired me to check my forecast, I still have eighteen months to go.....

It may not apply to you, mumofmadboys, but anyone looking after DGC while their parents work, even part-time, can claim Specified Adult Childcare credits, which count towards the state pension.

www.gov.uk/government/publications/national-insurance-credits-for-adults-who-care-for-a-child-under-12-fact-sheet

I found out I needed to pay another 3 years NI contributions to get a full pension. It will cost about £700 for each year. I worked out if I received the state pension for 3-4 years I will have received back the extra payments. Sorry I have expressed myself very clumsily.

As you say, GracesGran, stating that the COPE will not affect your state pension forecast is misleading. What they seem to be trying to say is that the figure shown as your state pension forecast is what you would get if you hadn’t been contracted out. The personal forecast sent to me in the post was much clearer.

This might help.

www.savvywoman.co.uk/2018/05/is-cope-deducted-from-my-state-pension-understanding-cope/

Thanks for your helpful replies.

The first line "Forecast 2023 £168.45 approx" tells you what the full state pension is now. It says "approx" because it may well have gone up by 2023 but that is your start point.

The second line "If you continue to pay national insurance contributions for 3 years you will receive £168.45 approx" tells you that you need three more years contributions to qualify for the full amount as your base pension.

Your COPE (Contracted-out Pension Equivalent) "estimated amount" is £94.00. They then tell you this "will not affect your state pension forecast" which I think is very confusing.

It tells you that:

*They expect you to receive a full pension.
* What you would receive if you paid no more NI
* how many years you need to pay NI to receive the full amount.
*How much you "used" contracting out
*That the payment for the contracted-out amount will be through your private pension.

It's all far too complicated but so is every benefit system the government runs.

I've just checked mine, and it was fairly easy to follow. The bit about what you'd get based on 2018 figure is the one I'm taking as correct because I haven't paid N.I since 2004. The amount due in 2020 is irrelevant because I won't be paying any more N.I. I have enough complete years so can't see the point of paying 700 quid a year for a few extra quid a month.

When I got to 60 I applied for a personal pension estimate, which I would recommend you to do. It took around 6 weeks to arrive. This gave me my pension forecast under the new scheme, which was a bit of a shock (around £100 a week). Then it showed what I would have had under the previous scheme, approx £130. And stated I would get the higher figure (phew), as there’s a transition scheme in place. That’s for a 41 year NI record, but I was opted out for some of them.

I hope this helps, though it is hard to explain.

In the past there was a basic NI “stamp” that every worker paid and then there was an additional top up amount based on how much you earned.

You had the choice to either pay this or to continue paying just the basic amount. Instead you paid your top up amount into a different pension scheme.

When you retire you will get what you are entitled to from the basic “stamp” plus the amount that comes from your other pension scheme. This will be in total the £168 they are talking about.

It’s a bit more complicated than that really plus the changes to the pension have confused it even further but that’s it in a nutshell ?

Not easy to log in even! Thought I would check my state pension forecast as I haven’t done so for a while, but it’s just too confusing! ??