MSE News: State pension could rise to £140 a week

Stargazer57

I wouldn't normally treat the Daily Mail as a reliable source, but as they were briefed on the original story yesterday it is probably as good as it gets until the Green Paper is published.

This story http://www.dailymail.co.uk/news/article-1323761/Pensions-apartheid-Current-OAPs-qualify-rise-140-week.html makes it clear that existing pensioners wont be affected and more importantly, in the context of this thread, that accrued entitlements to State Pensions in excess of £140 a week will be honoured.

seven-day-weekend

I for one am pleased as my State Pension is presently £104 and I am not entitled to Pension Credit. It will almost certainly be a rise for my husband too when he draws it in 2014 as both of us have opted out into occupational pensions and don't have much SERPS. My friend's pension is already £137 so it will not be as much of a rise for her. I suppose for some people it won't be a rise at all, although I suppose if they have this much in SERPS they will be able to keep it.

ETA: Just read the rise will not apply to existing pensioners. So some chav who has never worked will get £140 a week and I will keep my £104. Ho hum.

http://www.dailymail.co.uk/news/article-1323761/Pensions-apartheid-Current-OAPs-qualify-rise-140-week.html

Raggs_2

PasturesNew wrote: »

A single person with minimum income guarantee gets £132 now, and will get £140. £8 increase.
A couple with minimum income guarantee gets £202 now, and will get £280. £72 increase.

Every time anything changes, singles always get stuffed again.

And, as dunstonh points out - a lot of singles will be worse off as the 2nd pension will disappear too.

And people wonder why I really stopped bothering to care or join in and get a job 2-3 years ago.

How exactly are singles getting stuffed? If one of my family members won the lottery, gave me a tenner and another cousin a thousand quid, I'd still be happy. Singles will be receiving more cash, can't you be happy with that, rather than bemoaning the fact that a couple now receives double the amount a single does (with theoretically lower expenses).

Just because someone else comes out better off, doesn't mean that your stuffed, if singles lost out, and couples got more, then I'd agree, but everyone would get an increase.

hansi

wotsthat wrote: »

...and to pay for this it looks as if the state second pension will be sacrificed.

The past arguments about whether to opt out or back in are now irrelevant - those who opted out have a pension with their name on it; those who stayed in have another broken promise to deal with.

Exactly. My current state pension comes to over £140 a week now without pension credit, but includes the state second pension and graduated pension payments. So, I would lose out.

50Twuncle

Does anyone know for a fact that couples would receive £280 or would this be reduced as at present - a couple can receive little more than 50% more than a single person (presumably working on the assumption that 2 people do not double the single persons running costs) - so if true (and we can survive until 80 (plans ?) - this is excellent news.....

harz99

harz99 wrote: »

If these proposals come to fruition, I sincerely hope that ALL pensioners are treated equally and we don't end up with a two tier pensioner society - the existing pensioners on an old lower rate, those after the implementation date on a new higher rate!

That is effectively what happened when the NHIC qualifying years for State Pension were reduced.

Stargazer57 wrote: »

I wouldn't normally treat the Daily Mail as a reliable source, but as they were briefed on the original story yesterday it is probably as good as it gets until the Green Paper is published.

This story http://www.dailymail.co.uk/news/article-1323761/Pensions-apartheid-Current-OAPs-qualify-rise-140-week.html makes it clear that existing pensioners wont be affected and more importantly, in the context of this thread, that accrued entitlements to State Pensions in excess of £140 a week will be honoured.

seven-day-weekend wrote: »

I for one am pleased as my State Pension is presently £104 and I am not entitled to Pension Credit. It will almost certainly be a rise for my husband too when he draws it in 2014 as both of us have opted out into occupational pensions and don't have much SERPS. My friend's pension is already £137 so it will not be as much of a rise for her. I suppose for some people it won't be a rise at all, although I suppose if they have this much in SERPS they will be able to keep it.

ETA: Just read the rise will not apply to existing pensioners. So some chav who has never worked will get £140 a week and I will keep my £104. Ho hum.

http://www.dailymail.co.uk/news/article-1323761/Pensions-apartheid-Current-OAPs-qualify-rise-140-week.html

Exactly what I feared seems to be the case.

Just like 7dw above, both my wife and I have worked hard all our lives and because we have amassed some savings - though we are by no means rich - all we get in State Pension is £87 odd for her and £97 odd for me, no access to anything else except the Winter Fuel Allowance.

This just more political dogma, and further destruction of the welfare state by sleight of hand. Of course the millionaires in the ConDem Government will not be affected will they?

It is totally unfair to create two tiers of Pensioners; particularly as the lower tier will have more often paid in contributions for many, many more years, compared to the upper tier who in some cases will have paid nothing whatsoever in.

Either change for all with current total income safeguarded, or leave well alone.

Rikki

hansi wrote: »

Exactly. My current state pension comes to over £140 a week now without pension credit, but includes the state second pension and graduated pension payments. So, I would lose out.

That's what my OH fears too. Very unfair if this happens.

You made the extra contributions to give you a better pension so the government should keep your payments the same.

bryanb

21Twinkle wrote: »

Does anyone know for a fact that couples would receive £280 or would this be reduced as at present - a couple can receive little more than 50% more than a single person (presumably working on the assumption that 2 people do not double the single persons running costs) - so if true (and we can survive until 80 (plans ?) - this is excellent news.....

If you're talking pension and leaving aside pension credit. Each person receives the state pension in their own right, dependent only on their NICS. Whether married or not is irrelevant. However a woman with insufficient NICs can claim a pension of up to 60% of her husband's or ex husband's basic pension.
In the new system each person will be paid a seperate pension- no change there.
Pensions are not based on running costs but on contributions (at present)

wakeupalarm

Is this change really such a big change?

Atm we have graduated, SERPS, S2P, basic state pension.
A person receiving a total pension consisting of all of the above of less then the pension credit minimum amount is uprated to £132 atm. In future they will be uprated to £140. Net effect £8 gain.

Anyone receiving between £132 and £140 will received £140. Net effect upto £8 gain.

Anyone receiving more than £140 will continue to receive the same amount but they have the option to buy into the new system with no means testing so that their basic pension will be £140 and the remaing part (Graduated/SERPS/S2P) will be paid BUT the cost to buy in may have the effect of reducing their additional pension by the equivelent amount £140-£97, ie £43. Net effect no change to total pension amount but no means testing and future increases tied to basic pension rate rather then the s2p rate. ie (last year 2.5% v 0%)

Removal of means testing may result in less people qualifying for other income related benefits.

The only issue is like the case of child benefit, couples who already benefit from double the tax free personal allowance, benefit hugely compared to singles.

antenna

This is only a green paper proposal.........it will NEVER see the light of day...it is only a lib-dem uncosted promise,so,therefore not worth the paper it is printed on.
For example,those on less than £135 pension and no other income and very little savings will get around the same amount as a "basic" pension not means tested (?). so no increase there then.
Those with savings, but on the basic £97 pension that dont qualify for pension benefit top-up will get £43 a week extra..............NEVER IN A MILLION YEARS