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MSE News: Flat-rate state pension could be £155 a week
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Former_MSE_Guy
Posts: 1,650 Forumite
This is the discussion thread for the following MSE News Story:
"Women, carers and the self employed could be among the winners from the huge pension shake-up that could see a £155-a-week flat-rate state pension from 2015 or 2016 ..."
"Women, carers and the self employed could be among the winners from the huge pension shake-up that could see a £155-a-week flat-rate state pension from 2015 or 2016 ..."
Read the full story:
State pension reform: the winners and losers
also see:
Flat-rate state pension could be £155 a week
State pension reform: the winners and losers
also see:
Flat-rate state pension could be £155 a week
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Comments
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Does anyone know whether this will mean that people who have been contributing for many years towards their SERPS or second pension will lose out on their entitlement to the second pension?0
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I think we will have to wait until next week to find that out but it would seem pretty extreme to effectively reduce what people had already 'built-up'.
The system clearly needs improving and you can't please all of the people all of the time; current pensioners who have had the good fortune to receive a state pension at age 60 or 65 will hopefully appreciate that most people receiving the new 'flat rate' will have to wait longer and longer before they actually receive it - 70 plus asap is my guess. With 'nest' starting next year whatever party was in power would have had to remove 'means testing' from the system asap to actually encourage people to want to build up any savings in the first place.
Personally I think that any system that is simpler than the current one has to be a good thing and the apparent fact that 1 and a half million current pensioners don't claim pension credit when they could is damning and reason enough to risk upsetting some.
Life is a precious gift; fairness is a rare bonus.0 -
Does anyone know whether this will mean that people who have been contributing for many years towards their SERPS or second pension will lose out on their entitlement to the second pension?
Nothing concrete yet. Suggestion is that £40 of the £140 will be based on contracted in/out benefits. However, that seems far too simple and unlikely given the way contracted in/out benefits work.
One thing is almost certain; there will be no clawing back of protected rights funds. What you have you keep. Its just a case of how they impact in future that is not yet known.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Can I ask a silly question?
My mom has a state pension, she's very disabled and gets housing benefit.
Will her rise be taken of her housing benefit leaving her no better off?I’m a Forum Ambassador and I support the Forum Team on the Old style MoneySaving boards.
If you need any help on these boards, please let me know.
Please report any posts you spot that are in breach of the Forum Rules by using the Report button, or by e-mailing forumteam@moneysavingexpert.com.
All views are my own and not of MoneySavingExpert.com0 -
These proposed changes will not effect current pensioners or those who retire upto 2015/16, only new pensioners after the introduction.0
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Does this mean that those taking state pension immediately after the new rate will get more than those taking it immediately before it comes in?
If so, can someone who becomes eligible for state pension defer taking it in order to get the new rate?0 -
Does this mean that those taking state pension immediately after the new rate will get more than those taking it immediately before it comes in?
Theoretically, yes.If so, can someone who becomes eligible for state pension defer taking it in order to get the new rate?
We don't know. I suspect not as its more likely to be based on date of birth and the point you become eligible for the state pension. However, it is part of the information that will be covered when it goes to consultation and discussion. Remember this is all early information and not the final draft.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I retire this year at 60 from the civil service, I'm 65 in 2016 so will I be eligible for this simplified pension as my NI contributions will have ceased? I've made 40 yrs of contributions so I think I qualify.I suspect not as its more likely to be based on date of birth as the point you become eligible for the state pension. However, it is part of the information that will be covered when it goes to consultation and discussion. Remember this is all early information and not the final draft.
cheers fj0 -
I've seen nothing so far to indicate that these changes will affect her in any way at all.Barneysmom wrote: »Can I ask a silly question?
My mom has a state pension, she's very disabled and gets housing benefit.
Will her rise be taken of her housing benefit leaving her no better off?0 -
"Pensions minister Steve Webb said anyone whose built up additional earnings-related benefits will keep them.
Mr Webb said that during a 'transitional period' some pensioners would receive less than £140 'directly from the state pension'; the rest coming from existing top-ups."
So thats confirmed. The £140/155 state pension will simply be made up of your the basic amount plus your existing serps/s2p to get to the magic £140/£150 amount.
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