MSE News: £140-a-week state pensions on the cards

hugheskevi

I am a pensioner who foolishly moved to France where I could just about afford to buy a home. I had no way of knowing that the UK Government would not allow a pensioner who caught a half hour train across the water, to receive pension credit.

Aren't EU nationals entitled to Pension Credit if they reside in Britain?

So if the UK extended Pension Credit to those resident in Europe as well as the UK, wouldn't that mean the UK had to pay Pension Credit to pensioners of all nationalities across Europe :eek:

margaretclare

Alter_ego wrote: »

At present each person gets their own pension. There is no "Married couple's pension"

Nor is there ever going to be a 'married couple's pension'.

If it is £140 then, for a married couple, that means £140 each.

bilbo51

margaretclare wrote: »

Nor is there ever going to be a 'married couple's pension'.

If it is £140 then, for a married couple, that means £140 each.

Except when it doesn't!

If the wife has less than 30 years contributions it appears that she'll get less than the £140... so much for a "flat rate pension for all"!

WillowCat

bilbo51 wrote: »

Except when it doesn't!

If the wife has less than 30 years contributions it appears that she'll get less than the £140... so much for a "flat rate pension for all"!

Not at all getting at you bilbo, but I'm getting tired of hearing that those who haven't made NI contributions (or been credited with them) are upset they won't be entitled to the full pension.

It's been known for a long time (at least 25 years) that the married woman's NI stamp doesn't entitle women to a full pension.

Between 1978 and 2010 the home responsibilities protection for looking after children reduced the number of qualifying years required for a pension

It's also been known for a long time that a voluntary payment for NI can be made to boost the number of qualifying years.

The number of qualifying years for everyone was reduced recently to only 30 years.

So, let's take a theoretical woman, born 1/1/1953 who is due to retire in September 2015 (therefore probably on the new scheme).

Let's say she left school at 16, and worked through until she was 22 and got married.

She has 6 years contributions.

She popped out a kid the year she married, and another one 2 years later.

First child was born before home responsibilities protection kicked in, but she became eligible in 1978 when the scheme started.

So she gets home responsibilities protection until the younger child turns 16.

When the youngest child leaves for university, she gets a job for a couple of years.

She now has 6 + 2 years = 8 years contributions

In 2010 when home responsibilities protection is ended, instead of a 16 year reduction in the amount of NI contributions needed, it is turned into 16 years of actual NI contributions.

She now has 16 + 6 + 2 = 24 years contributions.

Now planning for retirement, she realises she is 6 years short of contributions, and only has 4 years to go until she does retire. She and her husband decide to pay a lump sum to purchase 2 years, and then pay a weekly amount for the next four years to gain a full contribution record.

This very canny lass has managed to make a total of 8 years working, plus 6 years of quite small NI payments equal £140 per week, indexed, for life.

Let's say she lives for 20 years after retirement, and dies at 82 (and she may very well live much longer than that)

Even not allowing for indexation, £140 x 52 weeks x 20 years is, wait for it,

£145,600

Not a bad return.

Yet some want that return even without making a contribution......

ceeforcat

I'll bet that there is one thing that won't change in this era of anti-discrimination, equal rights for all etc etc. -

No widowers pension.

WillowCat

ceeforcat wrote: »

I'll bet that there is one thing that won't change in this era of anti-discrimination, equal rights for all etc etc. -

No widowers pension.

Keep up at the back!

Widow's pension was abolished in 2001 for new claimants.

Bereavement Allowance is payable to a widow or widower.

ceeforcat

WillowCat wrote: »

Keep up at the back!

Widow's pension was abolished in 2001 for new claimants.

Bereavement Allowance is payable to a widow or widower.

Think I will stick to the tax thread - comfort zone and all that.

bilbo51

WillowCat wrote: »

Not at all getting at you bilbo, but I'm getting tired of hearing that those who haven't made NI contributions (or been credited with them) are upset they won't be entitled to the full pension.

I'm not getting at you either puss

I'm not even climbing on the Rights for Women bandwagon. Heaven forfend!

I'm just saying that the government ministers have been trumpeting on about a flat rate People's Pension for all...

And that's not what they've put up for consultation.

So more of a beef with economical-with-the-truth politicos.

But hey, it was ever thus...

Jaycee_Dove

As a self employed person with 30 years NI and now a full time carer I am concerned about this new pension.

If I understand the new plan correctly self employed people will be much better off IF they retire under the new rules. I, sadly, am a year or so too old and will retire shortly before it comes in.

How are those of us who will lose about £40 per week be compensated just because we were born a year or two too early?

Being on carer's allowance is complicating my thought as I gather I cannot defer my pension by three years or so to try to get up to the equivalent weekly level of everyone who will be retiring soon after me. Not and retain CA anyhow?

So how do I stay a carer and yet defer my pension? Given that I appear to have to refrain from taking my pension until I am about 65 in order to get the same weekly pension as others retiring soon after I do?

There are surely going to be many issues like this effecting those retiring between now and 2014/15 and the government have to be aware of this.

metrobus

What will the guaranted income level be for a pensioner ?

If he/she has 15 years NIC and due to recieve £70 pension (15/30x£140)
last weeks statement said there will still be a means tested top up.

That is if the below statement is correct.

The amount you get will be linked to how many years of NI contributions you have built up. So those who have 15 years of contributions would receive half of £140 — £70 a week. The minimum to qualify for some State pension is seven years’ contributions, worth around £32.70 a week. This is to ensure the system can’t be abused.