Retiring

[ganganvince]

thats pretty much my situation, and your understanding of the impact is the same as mine too.

On the plus side, I tracked down my private pension via the pension tracker on the HMG website (I think) and having found it, discovered it will pay me around 4 times what I lose from the state pension, and starting 2 years earlier too. I was only contracted out for about 2 years about 30 years ago, so the compounded growth on my contributions as a youngster must bee significant

Had always just checked the number online said I will get full pension 175 a week just double checked seems I will loose £51 a week

 

[hammocity]

It’s personal I know, but downsizing earlier releases your equity when you are young enough to go out and spend it, especially if you want to travel abroad.

Your best friend was very lucky. We have spent £170k and she still hasn’t finished!

I'm only going to release abut 80k at today's rates, point taken but: 170k :-) blimey!!

 

[hammocity]

Had always just checked the number online said I will get full pension 175 a week just double checked seems I will loose £51 a week

Someone more informed than myself will no doubt put you right but I doubt you will lose £51 a week if you have not yet taken your pension.

 

[hammocity]

thats pretty much my situation, and your understanding of the impact is the same as mine too.

On the plus side, I tracked down my private pension via the pension tracker on the HMG website (I think) and having found it, discovered it will pay me around 4 times what I lose from the state pension, and starting 2 years earlier too. I was only contracted out for about 2 years about 30 years ago, so the compounded growth on my contributions as a youngster must be significant

If you haven't taken your state pension yet my understanding is you can fulfil the 35 years criteria without losing anything, if you have missed two years from reading in here it appears you will lose about a tenner a week, you can catch up or top up your contributions for about £800 per annum according to those that have a full grasp.

 

[ganganvince]

Someone more informed than myself will no doubt put you right but I doubt you will lose £51 a week if you have not yet taken your pension.

So is that £51 an extra on top of the £175 I would have got rather than a deduction?

 

[paul1963]

I have just checked the state pension calculator.It says i have 41 years contributions and will receive £175 a week pension,But i definitely opted out of serps for a few years,maybe 5.It says i have a cope of £42 a week.

I checked my ni contributions and it said i had 41 years full contributions.So i would hope i would get a full state pension.I am 57 and hope to retire at 65 and claim the state pension at 67. But not sure if i will get full state pension

 

[squirtyflower]

I have just checked the state pension calculator.It says i have 41 years contributions and will receive £175 a week pension,But i definitely opted out of serps for a few years,maybe 5.It says i have a cope of £42 a week.

I checked my ni contributions and it said i had 41 years full contributions.So i would hope i would get a full state pension.I am 57 and hope to retire at 65 and claim the state pension at 67. But not sure if i will get full state pension

You can ask them for a proper forecast if you wish.

 

[abu13]

My HMRC state pension forecast (online) says £175.20 per week £9141.69 per annum, which is the maximum and cannot be improved. I was contracted out and that estimates to be £21.67 per week. I assume this means my state pension will be reduced by £21.67 per week and I can't now do anything to increase that? The basis being that the £21.67 should be made up by the company pensions I was paying into at the time of being contracted out? I have 32 years NI contributions so will easily make the 35 years.

How does this work though if you change jobs, my company opted out but i then moved on about 12 months later. No idea if any of the companies I worked for since had opted out or not.

 

[flook]

it's not very clear on the government website, but it's my understanding that the COPE figure is the expected contribution your personal pension will make to your retirement income, and this figure is deducted from your state pension on the basis that whilst you were contracted out, you paid reduced NI contributions for that period.

However, if my understanding is correct, then maximum state pension is due after 35 years of full contributions.

The conflict here is that if you have (say) 40 years contributions, and were only contracted out for 5 years, you should then get full state pension on top of your personal pension.

I may be wrong, but I don't believe that to be the case.

From the pensions forecast page (my bold):

Your forecast

• is not a guarantee and is based on the current law
• is based on your National Insurance record up to 5 April 2020
• does not include any increase due to inflation

£175.20 is the most you can get​

You were contracted out​

In the past you’ve been ‘contracted out’ of the additional State Pension.

When you were contracted out:

• you and your employers paid lower rate National Insurance contributions, or
• some of your National Insurance contributions were paid into another pension scheme, such as a personal or stakeholder pension

The amount of additional State Pension you would have been paid if you had not been contracted out is known as the Contracted Out Pension Equivalent (COPE).

Contracted Out Pension Equivalent (COPE)​

Your COPE estimate is£18.32 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.

In most cases the private pension scheme you were contracted out to:

• will include an amount equal to the COPE amount
• may not individually identify the COPE amount

So to me this is contradictory.

First it tells me the most I can get (presumably on the basis of 35 years contributions)
Then it tells me I won't be getting £18.32 of the government, but I will get this amount from my personal pension
Then it tells me it won't affect my State pension forecast.....but surely it already has done??

clear as mud then

 

[denislawsbackheel]

You are correct.
The COPE figure is deducted from your state pension and paid via your private pension.