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  • FIRST POST
    • joshly
    • By joshly 10th Oct 16, 3:28 PM
    • 110Posts
    • 5Thanks
    joshly
    State Pension Age
    • #1
    • 10th Oct 16, 3:28 PM
    State Pension Age 10th Oct 16 at 3:28 PM
    I am 50 years old.

    Therefore I think I would retire at 67 which will be 2034.

    A couple of times recently people have mentioned in conversation that there wont be a State Pension by the time I retire.

    Will there still be a state pension in 2034?
    Last edited by joshly; 10-10-2016 at 3:30 PM.
Page 2
    • Witless
    • By Witless 11th Oct 16, 1:25 AM
    • 411 Posts
    • 1,295 Thanks
    Witless
    The state pension was introduced over 100 years ago.
    Originally posted by dunstonh
    The basic state pension was introduced in January 1909. A pension of 5 shillings per week (25p, equivalent, using the Consumer Price Index, to £24 in present-day terms), or 7s.6d per week (equivalent to £35 today) for a married couple, was payable to a person with an income below £21 per annum (equivalent to £2000 today), following the passage of the Old Age Pensions Act 1908.

    The qualifying age was 70, and the pensions were subject to a means test.
    • brewerdave
    • By brewerdave 11th Oct 16, 8:45 AM
    • 4,013 Posts
    • 1,600 Thanks
    brewerdave
    ...Just as a matter of interest, how would they find out if one was a graduate? AFAIA there is no central register and the latest recipients of SP could have graduated in the early70s....so how??
    • PensionTech
    • By PensionTech 11th Oct 16, 9:19 AM
    • 582 Posts
    • 721 Thanks
    PensionTech
    Thanks for the link jamesd - I'm not sure about the DM's assertion that a 45-year working life would mean graduates waiting until nearly 70. Most of my peers left uni at 21, so this would give them a state pension age of 66 - lower than what they're currently facing. Of course, people with doctorates, Masters' degrees etc would be affected more. I wonder how this would apply to sandwich courses, School Direct, PhDs (where students may often teach classes), etc. Or the OU, or people taking part-time university courses, or people just generally working while studying...
    I am a Technical Analyst at a third-party pension administration company. My job is to interpret rules and legislation and provide technical guidance, but I am not a lawyer or a qualified advisor of any kind and anything I say on these boards is my opinion only.
    • JezR
    • By JezR 11th Oct 16, 10:12 AM
    • 1,433 Posts
    • 1,020 Thanks
    JezR
    But the £10 Christmas bonus is not, actually, a pension payment, it is a payment made to all recipients of qualifying benefits.
    Originally posted by greenglide
    Indeed it is and its other unusual feature is that it is not paid from the NIF but the consolidated fund. However, the fact that it is paid more widely does not negate it being paid with the state pension.

    It was somewhat of a late change in 1977 to resume paying it as the cancelling of it was continuing to be a drag on the government's popularity and was brought up each year as Christmas approached. It was defended on the grounds that there had been a general up rating of pensions and other qualifying benefits but this kind of got lost during the year in the era of high inflation.
    • bigfreddiel
    • By bigfreddiel 11th Oct 16, 6:34 PM
    • 4,072 Posts
    • 1,864 Thanks
    bigfreddiel
    ...Just as a matter of interest, how would they find out if one was a graduate? AFAIA there is no central register and the latest recipients of SP could have graduated in the early70s....so how??
    Originally posted by brewerdave
    Doesn't matter, here is how it will work:

    Graduates will be made to wait longer for their state pension while others retire earlier under a two-tier system that is being considered by the government.
    Under the proposals, which will affect everyone under 55, the plan would see a full state pension of £155.65 a week paid to anyone who has made 45 years of national insurance (NI) contributions, according to The Times.
    That means that anyone who delays starting work, for example by attending further education, would end up reaching their 45-year target a few years later and therefore waiting longer to draw their state pension.
    The reforms will be put forward as part of a wide-ranging review into the state pension, being conducted by John Cridland, former director general of the Confederation of British Industry (CBI).
    The paper said work and pensions secretary Damian Green supported the measure.
    It quoted a senior government source who said: ‘Linking work contribution and pension age seems like it could be a sensible way forward. It could meet all our criteria: fair, balanced and looking after those who can’t work while encouraging those who can.
    'We’ll look at all the options put forward by Cridland, but linking the pension age to life expectancy through work contributions is one route Damian is keen on, at this early stage.’


    simple innit! fj
    • Archi Bald
    • By Archi Bald 11th Oct 16, 6:59 PM
    • 9,263 Posts
    • 7,264 Thanks
    Archi Bald
    Doesn't matterj
    Originally posted by bigfreddiel
    Of course it matters. As brewerdave said, there is no register so graduates cannot be identified. Further, nobody is prevented from paying voluntary NICs from age 18.
    • zagfles
    • By zagfles 11th Oct 16, 7:13 PM
    • 11,107 Posts
    • 9,124 Thanks
    zagfles
    Thanks for the link jamesd - I'm not sure about the DM's assertion that a 45-year working life would mean graduates waiting until nearly 70. Most of my peers left uni at 21, so this would give them a state pension age of 66 - lower than what they're currently facing. Of course, people with doctorates, Masters' degrees etc would be affected more. I wonder how this would apply to sandwich courses, School Direct, PhDs (where students may often teach classes), etc. Or the OU, or people taking part-time university courses, or people just generally working while studying...
    Originally posted by PensionTech
    Yes it's just another ridiculous example of the headline not reflecting the underlying story to try to make it more sensational than it is. Most degree courses are 3 years, not 7, so for them the SPA at 66 will be far lower than what they're facing now under current changes.

    Also many students work both during term time and holidays - just over 15 hours pw at NMW will earn enough to get NI credits.
  • jamesd
    Under the proposals, which will affect everyone under 55, the plan would see a full state pension of £155.65 a week paid to anyone who has made 45 years of national insurance (NI) contributions
    Originally posted by bigfreddiel
    That would be a sneaky and underhand way of doing business.

    First, the single tier state pension is introduced which cut the state pension for full working life low earners from around £190 a week to £155 a week, and a greater cut for those with a higher income, with 35 instead of 30 years required and no earnings or work related-related component. Justification being that it takes money from low income and other workers to help those who don't work much.

    Then, the new proposal to cut the single tier pension for everyone who doesn't have a full working life.

    That'd be quite nasty for people like me who bought all of the seven years it would take to get to a full basic state pension entitlement by age 59 under the pre-single tier system which required 30 years. Leaving a further three years unbought because all that would have done was drop the age of maximum BSP to 56. Then the single tier comes along and adds five years to the requirement. Whew, still can get to the maximum, now it takes until age 64, glad I left a good safety margin. Oops, now 45 years and it's no longer possible for me to get to a full state pension.
    • zagfles
    • By zagfles 11th Oct 16, 10:55 PM
    • 11,107 Posts
    • 9,124 Thanks
    zagfles
    That would be a sneaky and underhand way of doing business.

    First, the single tier state pension is introduced which cut the state pension for full working life low earners from around £190 a week to £155 a week, and a greater cut for those with a higher income, with 35 instead of 30 years required and no earnings or work related-related component. Justification being that it takes money from low income and other workers to help those who don't work much.

    Then, the new proposal to cut the single tier pension for everyone who doesn't have a full working life.

    That'd be quite nasty for people like me who bought all of the seven years it would take to get to a full basic state pension entitlement by age 59 under the pre-single tier system which required 30 years. Leaving a further three years unbought because all that would have done was drop the age of maximum BSP to 56. Then the single tier comes along and adds five years to the requirement. Whew, still can get to the maximum, now it takes until age 64, glad I left a good safety margin. Oops, now 45 years and it's no longer possible for me to get to a full state pension.
    Originally posted by jamesd
    It sounds like they're just proposing to let people with 45 years NI credits have the state pension a bit early. Not that they're going to stop people getting what they expect under current rules. Though it might be combined with a sharper rise in SPA for those with 35 years.
    • JezR
    • By JezR 12th Oct 16, 9:26 AM
    • 1,433 Posts
    • 1,020 Thanks
    JezR
    Be simpler to phase out the principle of 'contributions' altogether and base the pension figure purely on years of residency in the UK workforce - especially since apparently being unemployed, too unwell to work, looking after children etc are still to be 'credited'. Although this proposal as said above isn't at all clear about people who take their degree years or even decades after leaving school.
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