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MSE News: Government outlines flat-rate state pension
Comments
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mrsenganbear wrote: »Search e-petitions and it will bring up a link to HMG e-petitions, and there is a petition on there for all current pensioners to get the new flat rate.
100,000 signatures will get a debate, but who knows what 10 times that will achieve?
If this issue does not directly affect you, it will probably affect someone you love.
So lets have some People Power!
.........but how would it be paid for???? I'm one who will " lose out" - I'll take my state pension in 2015 ,and because I was in a contracted out scheme for most of my working life will only get the current basic pension plus inflation plus a little bit for SERPS/ASP and the old graduated pension- I would be due another ~ £30 pw if I was "levelled up" -Multiply that by millions of pensioners in a similar position - billions extra per annum !!!0 -
But the average person could not live on the contracted out part of todays pension. (especially if you were to take it from 55)?
The average person couldn't live solely on the S2P portion of their state pension either - but since you can get an annuity from protected rights up to 13 years earlier than you'd get your S2P, there must be some advantage there. If only because you have the option, even if you don't exercise it.
Just because you're claiming a (state/private) pension, doesn't necessarily mean you don't have other income, including paid employment.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
So you will then need 35 yrs to get the pension (non means tested) , but someone whose never paid a penny, and has no other income will still get it, but it will be means tested--is that right.?
Anyone who's had less than 10 years of contributions will get nothing. (In the words of Webb, so "... that the state does not end up having to pay a pension to a backpacker who comes to the UK and does bar work for a couple of years.")Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Presumably, to ensure fairness, this petition will be suggesting that, in return for a switch to the new rate, to ensure fairness for the old and new genrations, existing pensioners will pay back any and all of the pension and pension credit that they have recieved to date at an earlier age than they would have done under the new rules ?
It'll be interesting to see how many of those who sign this petition are existing women pensioners who are irked that they won't be getting a higher headline weekly amount but conveniently ignore the fact that have been recieving the current rate since they turned 60, whereas those falling into the new system will not be eligible for either the pension or the other attendant benefits (free bus passes, winter fuel allowance, etc) until a much greater age.0 -
If you don't like the proposal then why not be constructive and say what you would do instead to reform the state pension system.
One assumes that those complaining about the white paper didn't ever bother to so much as read the green paper and so won't have provided constructive suggestions at the time.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Just_landed wrote: »Are you saying the self employed who haven't paid any class 2 NI will get the full pension ?
No, they won't.
However, people working for an employer whose salary is above the level required to gain a qualifying year, but below that where NI becomes due, will get qualifying years for nothing under both old and new schemes. Under the new scheme, the amount per qualifying year will also be larger.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »No, they won't.
However, people working for an employer whose salary is above the level required to gain a qualifying year, but below that where NI becomes due, will get qualifying years for nothing under both old and new schemes. Under the new scheme, the amount per qualifying year will also be larger.
I think the self-employed may be seeing a rise in national insurance contribution rates in the future to allow for the fact they will be effectively getting additional state pension also and not just the basic state pension.I came, I saw, I melted0 -
I am 55 and not working....... I have various deferred private pensions. Some were contracted in and some out.
My largest deferred pension has a reasonable GMP element built up from being contracted out.
I have 31 years of NI.
I have built up about £17 per week of SERPS
As I understand it I will get 31/35th of £144 - £127.
Am I right in thinking the SERPS will be lost forever?
Am I also right in thinking the £127 will be reduced in relation to the GMP?0 -
From speculation based on the government document referred to earlier, it will be less than this, since you have been contracted out for some of those 31 years. (As you point out below.)I am 55 and not working....... I have various deferred private pensions. Some were contracted in and some out.
My largest deferred pension has a reasonable GMP element built up from being contracted out.
I have 31 years of NI.
I have built up about £17 per week of SERPS
As I understand it I will get 31/35th of £144 - £127.
It would appear so.Am I right in thinking the SERPS will be lost forever?
It would appear so. Though by how much is unknown since at least two of us on this thread cannot find any reference in the government document as to how much this deduction actually is.Am I also right in thinking the £127 will be reduced in relation to the GMP?
My own speculation is that it will be based on which particular years you were contracted out, since I seem to recall the earlier contracted out years got a greater rebate than the latter years.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
I am 55 and not working....... I have various deferred private pensions. Some were contracted in and some out.
My largest deferred pension has a reasonable GMP element built up from being contracted out.
I have 31 years of NI.
I have built up about £17 per week of SERPS
As I understand it I will get 31/35th of £144 - £127.
Am I right in thinking the SERPS will be lost forever?
Am I also right in thinking the £127 will be reduced in relation to the GMP?
The protecton to accrued rights is based on the larger of 2 amounts
a) £127 less the unknown deduction for contracting out and
b) current state entitlement £107 (full basic state) + £17 = £124
It is likely that b) will give the greater sum.
So best guess is you won't lose SERPS as such as you are just getting what you would have got anyway before the changes i.e. full basic state + additional state (the £144 was always intended to include additional state pension).
Don't forget also that some of your additional state pension that you would have otherwise have received is effectively being paid by the company schemes (i.e. the GMP element) because you contracted-outI came, I saw, I melted0
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