New £140 state pension proposal

TREVORCOLMAN

dunstonh wrote: »

The single state pension has been on the cards for years. It was recommended in a report some years back. It just required a Government with the balls to make changes as whilst it may not end up costing much more than the current system, there would be people that would just go anti-Govt for the sake of it.

Whilst implementation may be planned for 2015. It is "probable" that there will be some tiering in place rather than a line drawn in the sand as to when you qualify under the new arrangement.

£140 in 5 years time - what is the equivalent today?

TREVORCOLMAN

jem16 wrote: »

Someone your age may be getting more or less - it's nothing to do with age.

I only get the basic state pension as I am contracted out through my teacher's pension. As you are getting some (but not the max) SERPS/S2P you have not been contracted out all of your working life. To get this additional pension you have paid more NI than I have.



It's not simple though. Anyone who is contracted out won't receive SERPS/S2P. Anyone who is self employed won't receive it either. Some will receive more than others depending on how long they worked and what they earned.

You must be minted as your logo says you own Scotland.

chris_m

TREVORCOLMAN wrote: »

£140 in 5 years time - what is the equivalent today?

Assuming annual 2.5% increments - around £125 now.

ossian

Personally I think I'm turning into an old fashioned Conservative. I never thought I'd say that.

My view is that they need to create breaks and say that people with more than X years of minimum contributions will get an old style pension. From now on we are reducing NI (by the protected rights amount) thus reducing the NI burden on subjects but lowering the 40% band starting point.

The future state pension should become a safety net and nothing more. Note that those too close to retirement to do anything about it are protected by the cut off preserving "old system" entitlements.

The government then says.... Every young person must provide for their own retirement if you want anything better than a subsistence income. You need to take responsibility for planning for old age or choose to work longer.

The increased tax take can reduce the national debt making us all wealthier long term. However people can opt out of the increased income tax by paying into their personal pensions. Income tax is preferable for the pension saver to NI as payments are gross of income tax but not NI.

Future governments can then stop constantly tinkering as the system is no longer promising more than we can afford it to deliver.

dougodurban

What irks me is that the pension will not be enough for us to live on in the UK, so we have to emigrate, probably to South Africa, where our UK State pension will allow us to afford a roof over our heads. What is so unfair is that we will NEVER get pension increases, simply becuae we will be living in old English-speaing parts of the Commonwealth, as is also the case with Australia, Canada etc. If you live in Europe, Asia, or USA, you will get any annual increases. Why not us?

wotsthat

What irks me is that the pension will not be enough for us to live on in the UK

When did this revelation hit you? State pension provision is hardly generous - surely you've not planned to be wholly reliant on the state in retirement.

If you live in Europe, Asia, or USA, you will get any annual increases. Why not us?

There isn't a reciprocal agreement with South Africa.

bilbo51

I think this (non) article highlights how confused the government has made the current situation wrt State Pension reform...

http://www.ftadviser.com/FinancialAdviser/Pensions/Personal/StatePensions/News/article/20101104/120d81d2-e36d-11df-9517-00144f2af8e8/Specialist-urges-clarity-on-state-pension-schemes.jsp

zarazara

Some of us will only have the state pension to rely on. Including me.

dunstonh

zarazara wrote: »

Some of us will only have the state pension to rely on. Including me.

For most people, that is a choice they can make and they are responsible for the consequences of that choice.