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State Pension Shortfall

11 Feb 2018, 11:24

I know this has been touched on before but I have just been on to the Government web site for my state pension forecast and even with 39 years of full national insurance contributions will only get £129 per week Government pension against the maximum of £159 per week.

This is do with COPE which was when Royal Mail contracted us out of this pension. Mine is over £50 per week

I know there are ways to buy extra years and am looking at how and when its best to do this if at all.

Just thought i would make some newer users aware.


State Pension Shortfall

11 Feb 2018, 11:28

Hawkey99 wrote:I know this has been touched on before but I have just been on to the Government web site for my state pension forecast and even with 39 years of full national insurance contributions will only get £129 per week Government pension against the maximum of £159 per week.

This is do with COPE which was when Royal Mail contracted us out of this pension. Mine is over £50 per week

I know there are ways to buy extra years and am looking at how and when its best to do this if at all.

Just thought i would make some newer users aware.


I checked mine out on the site too. I started at RM in 1988, having worked from 1985 in a few other jobs. According to my records, I only need another six years to get the full state pension. Not sure if that is right but that is what it said. Might be worth ringing them. I was just turned 18 in 1988, so should have a full pension by the time I'm 56.

State Pension Shortfall

11 Feb 2018, 12:03

I joined in Feb of the same year. Just don't want to work on for another 7 years if I can avoid it. 2 is plenty.

State Pension Shortfall

11 Feb 2018, 12:24

Started RM April 1979. I’m nearly 58.
State pension is estimated up to April 2017 £129.46.
Forecast is if I Contribute another 7 yrs upto April 5th 2025 I’ll get the max £159.55.

State Pension Shortfall

11 Feb 2018, 12:30

Here’s a bit of general info for those who haven’t already looked into their state pension:

Before the ‘new state pension’ was introduced in 2016, your entitlement was made up of:

Basic State Pension, which built up on the basis of how many qualifying years we’ve paid NIC’s; and
Additional State Pension(also known as SERPS or S2P), which is made up from how much NIC’s you actually pay.

People who were contracted out paid lower NIC’s(10.6%) and weren’t building up any Additional State Pension, but were getting at least as much from their employers instead.

From April 2016 you will have been given a ‘starting amount’ of state pension, which related to your Basic State Pension and any Additional State Pension added together minus your COPE amount. But you get at least as much under the new system as you would have got under the old one.

From then on, you will be building up more state pension, up to the maximum allowed, for each qualifying year you continue in work(assuming you earn a minimum amount). That is worked out as 1/35th of the maximum amount per qualifying year. Or at 2017/18 rates, £4.55.

Those who have been contracted out of the State Additional Pension can build up their entitlement by either continuing to work, or by buying qualifying years. Which is pretty good value, as you’ll get your money back after 3-4 years of reaching SPA and claiming your pension.

*It has been announced that the maximum state pension rate will be going up for the 2018/19 year to £164.35.


Personally and based on my online figures, if the state pension rules hadn’t changed, my basic state pension entitlement would currently be around £130 and they’d be no way of increasing that, assuming I stayed contracted out with RM.
Under the new system, that £130 is just my starting amount, with the current actual amount being around £140. If I continue to work a maximum of another 5 years taking me up to 55, that will take me up to the maximum state pension rate.

State Pension Shortfall

11 Feb 2018, 12:39

vmaxv4 wrote:Started RM April 1979. I’m nearly 58.
State pension is estimated up to April 2017 £129.46.
Forecast is if I Contribute another 7 yrs upto April 5th 2025 I’ll get the max £159.55.

I would have thought you’d get to the maximum by April 2024 at the latest!

If you have £129.46 by April 2017, then by April 2018 it would be £134.01. That leaves £25.54 to get at the rate of £4.55 per year, so another 6 full years.

But bear in mind that to qualify for a full year you only have to earn £6,034(from April 2018) from one employment in one tax year to qualify for a ‘pension year’. Therefore based on you being full time, you should get that by the summer of 2023 or so.

State Pension Shortfall

11 Feb 2018, 13:36

Just to add that the inflation increase in state pension is annual .

Copied the following https://www.lovemoney.com/news/61140/ho ... -2018-2019

The State Pension rise for 2018/19 has been confirmed at 3% – the biggest jump in the benefit since April 2012.

The current triple lock system means the State Pension rises by the greater of annual price inflation, as measured by the Consumer Price Index (CPI), earnings growth or 2.5%. September 2017's inflation figure was 3%, which means it is used as the measure to increase the State Pension from April 2018.


The Tories had laid out plans to scrap the State Pension ‘triple lock’, which ensures pensioner income rises by the higher of inflation, average earnings or 2.5% each year.

It wanted to replace it with a ‘double lock’ system in 2020, which would have meant the State Pension rises by the higher of average earnings or inflation.

However, the DUP opposed this pledge and under the new deal the Government has agreed to keep the triple lock in place.

This means that, regardless of what happens to inflation or earnings over the coming years, pensioner incomes are guaranteed to rise by at least 2.5% a year.

State Pension Shortfall

12 Feb 2018, 00:54

One of my sisters works for tax office and there is a lot of people who have been contracted out(myself also) but the average buy in is just over £2100. Its well worth the buy in as Robert T has said but go online and its all their and pretty straight forward.

State Pension Shortfall

12 Feb 2018, 04:14

I didn't get the full new state pension though I had over 40 years of contributions. I was ineligble to buy the extra years as I was 65 before it was introduced, but would have If I could. It seems worth it to pay for the extra years if you need them to qualify for the full amount.

State Pension Shortfall

12 Feb 2018, 15:58

How do you find out, any links ?

State Pension Shortfall

12 Feb 2018, 17:21

spen wrote:How do you find out, any links ?

Check your state pension here.

General info on how it's worked out, etc here.

State Pension Shortfall

14 Feb 2018, 19:22

Hawkey99 wrote:I know this has been touched on before but I have just been on to the Government web site for my state pension forecast and even with 39 years of full national insurance contributions will only get £129 per week Government pension against the maximum of £159 per week.

This is do with COPE which was when Royal Mail contracted us out of this pension. Mine is over £50 per week

I know there are ways to buy extra years and am looking at how and when its best to do this if at all.

Just thought i would make some newer users aware.



I took evr at 56, 3 years ago after 38 years service and I'm wondering is there a way to make up the shortfall in NI payment due to opting out to boost my state pension? I've been looking all over the net for information but can't find anything specific to my case.

State Pension Shortfall

14 Feb 2018, 19:31

pj2001 wrote:I took evr at 56, 3 years ago after 38 years service and I'm wondering is there a way to make up the shortfall in NI payment due to opting out to boost my state pension? I've been looking all over the net for information but can't find anything specific to my case.

Try this.

State Pension Shortfall

16 Feb 2018, 14:44

pj2001 wrote:
Hawkey99 wrote:I know this has been touched on before but I have just been on to the Government web site for my state pension forecast and even with 39 years of full national insurance contributions will only get £129 per week Government pension against the maximum of £159 per week.

This is do with COPE which was when Royal Mail contracted us out of this pension. Mine is over £50 per week

I know there are ways to buy extra years and am looking at how and when its best to do this if at all.

Just thought i would make some newer users aware.



I took evr at 56, 3 years ago after 38 years service and I'm wondering is there a way to make up the shortfall in NI payment due to opting out to boost my state pension? I've been looking all over the net for information but can't find anything specific to my case.

Hawkey99, didn't I have a shock when I drew my state pension, more than £50.00 a week drop due to SERPS, the Union recommended us to accept this agreement with RM at the time, hindsight is a wonderful thing. :sad:

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