55 year old women lose approx £30k in State Pension

nearlyrich

Yes but if you started paying in you should get the retirement date you were promised at first! I'm not quite 49 and I have to wait till 66 and till 55 for my personally arranged schemes which I started to retire at 50. GRRRRR!

custardy

nearlyrich wrote: »

Yes but if you started paying in you should get the retirement date you were promised at first! I'm not quite 49 and I have to wait till 66 and till 55 for my personally arranged schemes which I started to retire at 50. GRRRRR!

and for me it was 65,it will be way over that by the time i retire
why should women retire earlier than men,given most will have a longer retirement than men
so you 'only' have 1 year more than men did when you were paying in
i will most likely have 5 years,maybe more

real1314

nearlyrich wrote: »

Yes but if you started paying in you should get the retirement date you were promised at first! I'm not quite 49 and I have to wait till 66 and till 55 for my personally arranged schemes which I started to retire at 50. GRRRRR!

I don't think any system could cope with waiting over 40 years for a change to take effect.
It might be argued that any element paid in up to the date the rules were changed should have been drawable on the original rules, but that approach would have seen an instant rise to 65 for the remaining portion.

i.e if you needed to pay in 40 years to get a pension, and you had paid in 20 years when the rules were changed, you'd get half your pension at 60, and the other half would have to wait until you were 65.

molerat

Only 30 years contributions needed for a full pension and a lot more women will be getting a pension of their own under the new system so will actually be gaining.

hugheskevi

A 58 year old man earning £25,000/year will retire at 65 under Labour, the Conservatives will save him a total of £259 in National Insurance for which he will have to work a year longer.

A man aged 58 will start to receive their State Pension (not retire) at age 65 under Labour, and start to receive their State Pension at age 66 under the Conservatives. They are free to retire whenever they wish under either party.

Their financial loss is 1 year of State Pension. Let us say that their weekly State Pension is £120 (about average for a man, including Additional Pension.) That is a loss of £6,240 per year, and that is the financial impact on the individual.

Offset the £259, and the loss is £6,240-£259=£5,981.

His net pay is £19,174. So it will take him a bit less than 4 months to make good the loss.

Much less dramatic than having to work a whole extra year

mumps

molerat wrote: »

Only 30 years contributions needed for a full pension and a lot more women will be getting a pension of their own under the new system so will actually be gaining.

By the time I retire, 63 years and 7 months, I will have paid NI for over 48 years, I left school at 15. I feel like the least they could do is accept that I have paid my dues and not have to pay NI after 60, when I expected to retire.

CLAPTON

my understanding is that some-one earning 25,000 has a NI allowance of 5715 per annum so will pay an extra NI contributuion under labour's plans of
(25,000 - 5715) x 1% i.e. 192 per annum

mjm3346

hugheskevi wrote: »

A man aged 58 will start to receive their State Pension (not retire) at age 65 under Labour, and start to receive their State Pension at age 66 under the Conservatives. They are free to retire whenever they wish under either party.

Their financial loss is 1 year of State Pension. Let us say that their weekly State Pension is £120 (about average for a man, including Additional Pension.) That is a loss of £6,240 per year, and that is the financial impact on the individual.

Offset the £259 p/a for 7 years, and the loss is £6,240-(7*£259)=£4,427.

His net pay is £19,174. So it will take him a bit less than 3 months to make good the loss.

Much less dramatic than having to work a whole extra year

The £259 was a total not an annual figure the Conservative give away is only £37/year in return for working an extra year and those worst hit are those most likely to be relying on the state pension and not able to retire without that income.

mjm3346

CLAPTON wrote: »

my understanding is that some-one earning 25,000 has a NI allowance of 5715 per annum so will pay an extra NI contributuion under labour's plans of
(25,000 - 5715) x 1% i.e. 192 per annum

The start level is to rise to around £7,000 so those earning less than £20,000 will see a reduction in contributions, which means not only do they lose cash under the Conservative plans they have to work a year longer as well (assuming they cannot afford to retire without their state pension income)

jamesd

BM_Surrey wrote: »

I am 55 years old. I have been advised that I cannot now draw my state Pension until I am close to 65 years old.

Women on average live about three years longer than men. This change is just part of moving to a more equal system, though there's not yet any plan to have women retire later than men to allow for that extra life expectancy, just this reduction of the inequality.

In April everyone under 50 lost the ability to take private pensions at age 50, it's now a minimum of 55. This is part of adjustments for longer life expectancies for everyone, that mean pensions, including the state pensions, are paying out for more years than anticipated.

You may have read about the UKs financial structural deficit. The state and government pensions that aren't funded now but are paid for out of taxes when in payment are two large parts of that. This is why there are likely to be more changes, like that Conservative plan to speed up the increase in state pension age for both men and women from 65 to 68.