New £140 state pension proposal

Old_Slaphead

If S2P contributors are not going to get any benefit from their years (decades ?) of contributions - what's to stop them transferring out to a private scheme?

dunstonh

Old_Slaphead wrote: »

If S2P contributors are not going to get any benefit from their years (decades ?) of contributions - what's to stop them transferring out to a private scheme?

Its done on a year by year basis. So, you can contract out for 2 more years (before contracting out is abolished) but you cant do anything about past years.

mramra

dunstonh wrote: »

Its done on a year by year basis. So, you can contract out for 2 more years (before contracting out is abolished) but you cant do anything about past years.

Does this mean that anyone not currently contracted out would be best to do so now to get two years cash? I am aware these are only proposals, but if S2P may be scrapped it seems sensible to contract out now if not already contracted out, or am I missing something?

2010

givememoney wrote: »

I get a full single persons pension of the £97 odd.

My husband gets £212 per week as he never opted out of SERPS.

What concerns us with this `pension fits all` would he be expected to loose the extra contributions he paid in and have to take a cut in pension?

Anyone know?

It (if it ever happens) wont affect you or your husband.
The proposal for the £140 a week per person, who have paid their 30 years NI contributions, only affects those who become eligible for a state pension from April 2015.

http://www.dailymail.co.uk/news/article-1324090/41k-pension-apartheid-leaves-12m-poorer-payments-life.html

dunstonh

Does this mean that anyone not currently contracted out would be best to do so now to get two years cash?

IF (note the big IF) the govt do go on to abolish S2P and replace it with a single state pension and introduce it for all people who have yet to reach state pension age then yes.

We don't know and won't know for a while probably whether it will be introduced on the basis of all past benefits wiped out and replaced or just benefits accrued going forward on the new way with old stuff kept the old way.

del1001

mramra wrote: »

Does this mean that anyone not currently contracted out would be best to do so now to get two years cash? I am aware these are only proposals, but if S2P may be scrapped it seems sensible to contract out now if not already contracted out, or am I missing something?

No you're not missing something, your bang on, unfortunately I opted back into s2p a couple of years ago on the advise of my financial advisor.

It now looks as though I've got to out back out again, at least that way the extra contributions from national insurance payments will go towards my pension and not down a black hole.

£140 doesn't even come close, it's yet another smoke and mirrors exercise being performed by HMG.

Dawni

It's all very well some people saying that any new system will have winners and losers, but to create a two-tier pension system where many older pensioners will end up much worse off than younger pensioners isn't just unfair, it's utterly ridiculous. Not everyone currently claiming their state pension has managed to build up extras such as SERPS; many simply qualify for the basic amount or even less. The argument goes that these people can claim pension Pension Credit, which for a single person is currently £132.60 - well, that's not too far off the £140 proposed for the future pensioners, I suppose. BUT, if a couple need to claim Pension Credit the rate is £202.40, which is a long way off the £280 combined state pension a future pensioner couple will receive. This is manifestly unfair and totally illogical; if the government thinks a pensioner couple retiring after 2015 need £280 state pension to live on, will they increase the Pension Credit for couples to this amount? And if not, why not?

Another thing: future couples are being given this much higher amount as a right, they don't have to disclose their savings or any other pensions, they're just given it. Whereas the older pensioners have to tell the Pension Credit people every little financial detail, just so they can get a little more than the measly amount they're given after a lifetime of work. We know that at least 50% of present day pensioners claim Pension Credit, but it's also known that many who would actually get some if they applied don't apply, simply because they've too much pride, they don't want to be seen as asking for something not freely given to them. I know some people find this attitude inexplicable, but I worked for years in a supplementary benefits office (many years ago) and it was the older people who were reluctant to ask for any means tested benefit, they saw it as a type of having to beg for money and they hated having to do it. I know for a fact that there are people who still feel like this, the older they are the more likely they are to think in this way.

All pensioners should be given a pension they can actually live on, then there'd be no need for fuel payments and bus passes, etc. If the country can't afford to treat its pensioners fairly then why are they ring-fencing billions in aid to other countries? Many of today's pensioners - the very oldest - lived through WW2, many fought for our country and our freedom - for what? To be told they're not worth as much as younger people, that they have to go cap in hand to the government just to get enough money to live on? I'd like to challenge the government on this one - have a referendum to ask people should we continue to support people in other countries or should we keep those billions of pounds to support our own old people here in the UK? I think we all know what the answer would be.

PS The politicians should remember that today's millions of pensioners all have a vote and they actually go out and vote (or get a postal one, as my 92-year-old mother does). Again, they see this as their duty, something that a good citizen should do; I advise all politicians to think about that when considering who is to benefit from any future changes in pensions.

diable

I'be just heard that you are now allowed to retire once you have passed away........

Rainmaker_uk

seven-day-weekend wrote: »

Mine is £104 at the moment (which I am receiving). Very little SERPS because contracted out. HUGE increase for me!

(edited to add, not for me as it is for people retiring after the date, not those of us already retired )

Fair enough though as you did get to retire earlier than the rest of us following in the baby boomer footsteps...

Rainmaker_uk

Dawni wrote: »

It's all very well some people saying that any new system will have winners and losers, but to create a two-tier pension system where many older pensioners will end up much worse off than younger pensioners isn't just unfair, it's utterly ridiculous.

All pensioners should be given a pension they can actually live on, then there'd be no need for fuel payments and bus passes, etc. If the country can't afford to treat its pensioners fairly then why are they ring-fencing billions in aid to other countries?
I'd like to challenge the government on this one - have a referendum to ask people should we continue to support people in other countries or should we keep those billions of pounds to support our own old people here in the UK? I think we all know what the answer would be.

First of all older pensioners retired earlier so swings and roundabouts... They are also quite lucky that the state provides for those that may not have not provided for themselves during their working life - this is by no means guarenteed for the rest of us - who knows what will happen in the coming decades?

I take offence with your suggestion that we cut aid to some of the worlds poorest and most desperate people just because they live in another country. War veterans etc aside I am just as happy to see my tax assisting these people than those that have not put money aside during their working (or perhaps not working life).

The difference that a few quid extra makes to a pensioner is not comparable to a child dying every second from a preventable cause.