Ask the Pensions Minister about the future of pensions

jamesd

After five years of investing over 60% of my income I'm about to reach the point where if I became ill or long term unemployed I could maintain my minimum required income of about £12,000 including housing costs for the rest of my life. When I reach state pension age more than twenty years from now my income would increase from £12,000 to £19,000 a year. What can be done to change the limits on how much income I can draw from a pension between 55 and state pension age so I could have a consistent income of £14,000 a year instead of twenty plus years of famine before relative feast after state retirement age?

Annuities are unsuitable because of my age for most of this period and their low payouts at younger ages, so income drawdown is required. At present the limitations on pension drawing rates are causing me to switch away from pension investing to other options that do allow rates of income payment that only need to be sustained until state pension age, not for the rest of my life.

----

Will you encourage mortgage lenders to make mortgages available with terms well into retirement so that those whose incomes will increase after state pension age do not have avoidable high payments to make before state pension age when the higher income after state pension age will make it much easier to clear the mortgage? Such things as interest only before state retirement age then repayment after it for ten years, combined with mandatory life assurance to cover the early death case, would greatly help the ill health or earlier than SPA retirement cash flow cases.

----

I normally describe the NEST scheme as one that only employers who are too lazy to do the research or who don't care about their employees would use. For gross payments of £50 a month per employee it's easy to find alternatives that offer lower charges, both initial and ongoing, and more investment options without a ban on transferring out to a competitive product once the money has been paid in. What will you be doing to help small business employers locate these better options with minimal work on their part?

swphe1

I'm already in my own Pension scheme, what will happen in 2012 when my Company has to enter me in the new scheme, can they pay their contributions into my own existing Pension or will they start a new Pension?

trisheccleston

Dear Sir

I would like to know why I get a State Pension and Guaranteed Pension Credit and have to pay Income Tax on these? I receive £132.60 per week.

Neil1_2

Why should anyone trust paying into a pension, adding voluntary contributions and exchanging lump sums for added pension when the basis of uprating can be reduced?

Why does the Government believe that CPI is a more appropriate index for uprating pensions when the evidence being presented to the Government, from bodies such as Age UK and the The Royal Statistical Society prove otherwise?

Why has Steve Webb reneged on his election promise? In a letter dated 12 April 2010, Steve Webb said on behalf of the Liberal Democrats "We are very clear that all accrued rights should be honoured: a pension promise made should be a pension promise kept. Therefore we would not make any changes to pension rights that have already been built up. I have confirmed that I regard accrued index-linked rights as protected."

jeff.cowles

When is this government going to end the biggest con-trick ever played by Gordon Brown on the pensioners of this country - pension credit? State Pension is earned by contributions, Pension Credit is not.
In order to avoid giving ALL pensioners a decent basic pension, Gordon Brown introduced Pension Credit so that only a few were given this benefit
Basic State Pension is currently £97.65 but Pension Credit basic is £132.60 - why such gross unfairness and why is State Pension subject to income tax when many other non-contributory benefits are not taxed?

T.Shepherd

Why is the Personal Income Limit for 65 year olds so low?
If a 65 year olds income is £22900 or more the age related tax allowance of £9490 is reduced at the rate of £1 for every £2 the income exceeds £22900.
This is another example of pensioners being penalised. A fairer way would be to increase the limit to the average national wage ( currently £26000 a year) and this would then ensure that pensioners are no worse off than the average man in the street.

johnfwoods

I am one of many pensioners who took full advantage of the second pensions schemes available during my working life in order to boost my retirement income. Gordon Brown was the first to exclude these SERPS type pensions from getting a full increase in the pension payment. Are you going to continue this despicable practice?
Why have you promised to bring the pension increases up to increases in the standard of living with one breadth and related them to RPI with the next breadth?

dougodurban

When I turn 62 in 2012, we will have to emigrate as we will not be able to afford to live in the UK. We intend to go to South Africa where we have friends and relations, and my small pension may suffice. However, my pension will be frozen, unlike if I moved to just about anywhere else in the world. If we move to former colonies, such as South Africa, Australia, and Canada,we will never receive automatic pension increases. Why? I know this has been rejected by the EU Courts, but it is still unfair. We will not be a burden of the Sate, as we will not be using State resources, NHS, transport, housing etc, so why be penny-pinching? You should be encouraging us to leave, even make it worth our while. Yours, Douglas hendry

walk

(i) I would like to know when working people earnings allowance before tax goes up to over £10,000 an increase of over £3,500.00, will pensioners allowance go up in line with this? Pensioners over 65 years are already on an allowace of over £10.000.00.
(ii) If the basic state pension of £140.00 is introduced does this mean they will get rid of the old serps pension? If yes, I believe some people will be worse off. My husband being one of them.
(iii) My husband was made to join a works scheme. Together with his works contribution £1,800.00 went in. We are told the fund now is worth less than £600.00 and it still has over fours years to run. So the pension scheme was a waste of money. Are the government going to guarantee no one will be worse of when they are made to join up to one of these schemes?

Johnjiffy

I have heard a rumour that there may be an increase in Pension to £140 per week.

Apparently we await a green paper on proposals. Before it gets to that stage can we be assured that this increase will not be at the expense of those who made a working lifetime of extra contributions through Graduated Pension Schemes and SERPS etc.

Can we be assured that those who receive more than £140 per week will not have their pension reduced?