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Post by bracknellboy on Jul 20, 2023 14:34:28 GMT
OK, so maybe I AM missing a trick here.
I no longer full time work.
I have over the 35 years (38 to be exact) complete years.
My only 'gap years' are while I was at Uni (ironically....).
I do some part time self employed work which gives me the option of paying Class II NICs (indeed I could opt to work a bit more and end up having to pay them). I've assumed that this is pointless. However, if I did choose to pay them, would they potentially start cancelling out paid up years when I was opted out, increasing my final pension ?
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Post by erniec on Jul 20, 2023 18:25:20 GMT
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Post by mostlywrong on Jul 20, 2023 18:44:03 GMT
OK, so maybe I AM missing a trick here. I no longer full time work. I have over the 35 years (38 to be exact) complete years. My only 'gap years' are while I was at Uni (ironically....). I do some part time self employed work which gives me the option of paying Class II NICs (indeed I could opt to work a bit more and end up having to pay them). I've assumed that this is pointless. However, if I did choose to pay them, would they potentially start cancelling out paid up years when I was opted out, increasing my final pension ? My understanding is that the answer is yes. As you are still "working".
I think the contracted out bit was roughly 13 years in length. The pension shake up in 2016 crystallised the damage. I lost roughly 10% of my state pension because I relied on the data on the gov.uk website which did not, at the time, account for the contracted out bit.
It will be worthwhile talking to the Future Pensions Team.
MW
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Post by bracknellboy on Jul 20, 2023 19:58:53 GMT
Agreed. My heritage DB scheme explicitly shows/carves out the GMP element. Which is also interesting, as it had different 'guarantees' re. the how much it increases by.
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,586
Likes: 2,617
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Post by keitha on Jan 16, 2024 15:48:15 GMT
Contracted Out Pension Equivalent (COPE)
Your COPE estimate is £116.39 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
The total amount of pension paid by your workplace or personal pension schemes will depend on the scheme and on any investment choices.
my state pension will now be £1.02p short of the maximum , but given my occupational pension is more than twice my state pension i think I will manage
class 2 voluntary is IMHO the greatest investment ever.
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jlend
Member of DD Central
Posts: 1,840
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Post by jlend on Jan 17, 2024 12:27:57 GMT
Contracted Out Pension Equivalent (COPE)
Your COPE estimate is £116.39 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 The total amount of pension paid by your workplace or personal pension schemes will depend on the scheme and on any investment choices. my state pension will now be £1.02p short of the maximum , but given my occupational pension is more than twice my state pension i think I will manage class 2 voluntary is IMHO the greatest investment ever. The other option for some people is take a small part time job, earn between the lower earnings limit and primary threshold and hence pay no NI but get the years entitement on your state pension. www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributionsThat is what I did for a couple of years.
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badersleg
Member of DD Central
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Post by badersleg on Jan 19, 2024 12:52:53 GMT
When I was filing my tax return it suggested that class 2 was being abolished, however this is not the case.
There are some changes to Class 2 NI from next tax year but it looks like it will still be possible to voluntary pay it. Potentially a cheap way of keeping up your 'stamp' contributions in exchange for registering as self employed.
Those making profits over £12,570 will be treated as still having a qualifying year for contributory benefits, but without paying Class 2 NIC – so they save £192.40 in 2024/25
Those making profits between £6,725 and £12,570 will not make such a saving, as they are already being treated as paying Class 2 NIC without actually having to pay it;
Those with profits under £6,725 will still have to pay Class 2 NIC voluntarily to keep up their contributions record for benefits purposes.
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,586
Likes: 2,617
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Post by keitha on Jan 19, 2024 13:38:59 GMT
£162 a year which gets you back over £200 a year for life
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Greenwood2
Member of DD Central
Posts: 4,377
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Post by Greenwood2 on Jan 19, 2024 13:52:27 GMT
How they arrive at my state pension is a total mystery to me, but it's nice to have.  |
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