Flat Rate Pensions

HappyMedium_2

I have been reading up on the proposals for a Flat Rate Pension of approx £140 per week, and am somewhat amazed at the thinking behind this grossly unfair proposal.

Having worked all my life, starting at age 15, paying both tax and NI contributions, I am at loss to understand the reasoning behind the Flat Rate Pension proposals, which would mean scrapping the paid for extra State Pension, as this would be rolled into the Flat Rate.

This means in real terms, I would receive the same amount of Pension as a person who has never worked and lived off the state all their lives.

In the year 2009 I received Additional State Pension or Graduated Retirement Benefit of:
Pre 97 £30.51
Post 97 £12.25
Total £42.78

If the Flat Rate of £140 per week comes into effect, this would mean a loss of an extra £42.78 per week for which I have worked hard, paid my fair share into the state, plus I have paid additional rates to benefit from extra pension in my old age. How can this be fair or just. What was the incentive to work hard all my life!

Not only that, but anyone receiving Pension Credit and therefore getting Council Tax Benefit on an average rate of £1,100 per year would be £13.78 per week worse off, which probably means most older people.

monkeyspanner

On the face of it I would agree that you seem to have paid additional money for pension provision to the goverment and will not get any additional benefits under these proposals.

Unfortunately governments of all parties over the last 30 years have created a completely unsustainable pension system compounded by an overly complicated benefit system. Sorting this mess out is impossible to avoid due to incresing life expectancy and will inevitably cause numerous injustices.

seven-day-weekend

AFAIK,the proposals will only apply to new State Pensioners, not existing ones. Which means I will stay on my £104 a week.

I too think it is unfair, but not because I will be on less. I think you SHOULD have more if you have paid in more. People who have not worked through choice (not talking about sick/disabled here) should have less than those who have worked and paid in.

bobthedambuilder

It seems to me grossly unfair that existing pensioners, who have in their working lives contributed just as much as those to whom this flat rate will apply, may be excluded from the proposals.

If indeed the major reason for the change is to 'fundamentally simplify' the state pension system by removing means testing for those who currently qualify for pension credit (Iain Duncan Smith's words), then that objective would be defeated by excluding existing pensioners, who would still need to have that recourse.

Of course, the proposals as yet are still incomplete, so we must wait to see what Osborne has to say about it, if anything, in his budget.

Oldernotwiser

It's already the case that someone who's never worked gets pension credit of £132, whereas someone who's worked for 30 years gets £104. I can see that both this system and the new system are unfair but I can't see an answer to it, without leaving some people in poverty or raising state pensions for others to an unaffordable level.

Nobody ever said that life's fair.

Farway

From what I have heard it seems seven-day-weekend is correct, new pensioners only

And from my 50 years of working life, I bet a new Government [of any flavour] will change it anyway before the first £140 is paid out

I had 6d a week for every £1 deducted by State in my early years for Graduated Retirement Benefit

Then came SERPS which had cross party support, until we all starting claiming the increased pension we had paid for & been promised, then that got changed pretty sharpish to a lower amount

I am one of the fortunate ones, male, worked all my life and get plenty to live on, if the £140 is for all then I will seriously out of pocket

meercatsunited

I know someone who was a benefit cheat, got caught 2-3 times but received Ni credits for all 18 years of claiming, she gets a full pension and benefits.

I always worked paid reduced contributions, did not know it would affect my pension, changed to paying full when I found out, I earned a good salary and paid hundreds each month but the amount counts for nothing. I also saved, invested and remortgaged my house 3 years ago so no pension credit or council tax benefit for me even though my pension is only £35 per week.

I expect to be homeless in the future.
it pays to not to work or save.

Errata

My guess is that those receiving graduated pension / Serps will continue to receive them on top of the flat £140, whilst those on the basic state pension or on less than £140 and claiming pension credit will get £140 and no PC.
I could be wrong

seven-day-weekend

Errata, I'm sure that is correct but Pensioners like me who do not qualify for Pension Credit will still not qualify for the £140 a week.

So I have worked and paid full stamp (and will stay on my £104) and someone else who has not paid in will get £140.

Oh well, such is life.

moonrakerz

The £140 a week pension is just "kite flying" !

No details have been announced, all the stories in the media are their interpretations of what MIGHT happen.

Errata

seven-day-weekend wrote: »

Errata, I'm sure that is correct but Pensioners like me who do not qualify for Pension Credit will still not qualify for the £140 a week.

So I have worked and paid full stamp (and will stay on my £104) and someone else who has not paid in will get £140.

Oh well, such is life.

Could any government get away with paying some pensioners c40% more than others? 'Tis a big difference!