MSE News: Budget 2011: £140 a week state pension planned 23 March 2011 at 11:25AM edited 23 March 2011 at 2:19PM in Pensions, annuities & retirement planning 8 replies 2.3K views

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

Read the full story:
Budget 2011: £140 a week state pension planned

bilbo51

Read between these lines!


From the Red Book:

2.14 State pension reform – The Government intends to reform the state pension system for future pensioners so that it provides simple, contributory, flat-rate support above the level of the means-tested Guarantee Credit. The Government will honour contributions to the current system. The Department for Work and Pensions (DWP) will shortly publish a Green Paper to consult on options for reform, which will include a proposal for moving towards a single tier pension. These reforms will be designed so as not to increase public spending dedicated to state pensions. Final proposals are subject to confirmation, including on affordability, and will reflect the projection set out in the OBR’s Fiscal Sustainability Report.

2.15 State pension age

– Given the continuing increases in life expectancy, the Government will bring forward proposals to manage future changes in the state pension age more automatically, including the option of a regular independent review of the implications of longevity changes.

RuthMarianna

I heard it mentioned in the budget that pensions will still be based on contributions. So I wonder how that would leave me with lots of missing years from not working while bringing up children and not going back since they grew up.

Currently my husband gets Pension Credit although he is only 60. So I wonder how the changes to Pension Credit will come in and whether it will be phased out so that we would be no worse off as I do not qualify for my pension till 2017 and even then I am not surewhether I would get the full flat rate proposed or not.

The theory of the flat rate pension is good if it works out in practice avoids leaving some people worse off.

ArKay

..... and leading on from a similar question in a similar forum last month. Will it still be contribution based? That is, if I was away from work (kids or just did not pay sometimes when self employed) will I still get the £140 flat rate?

Hayseed

I took early retirement and paid 6 years voluntary contributions to get my full entitlement. Osborne says new £140 rate does'nt apply to existing claimants . Does this mean I'll only be getting the current basic and not the increased rate ? Isf so it's absolutely outrageous and unfair. What can I do ?
Hayseed

StevieJ

So how do people think a move from £100 to £140 for quite a number of future pensioners is going to be financed.

Admin savings - I don't think so

Longevity age increases - We need those to pay for the system as it stands.

I admit I am baffled but I don't expect a positive outcome.

bilbo51

Hayseed wrote: »

I took early retirement and paid 6 years voluntary contributions to get my full entitlement. Osborne says new £140 rate does'nt apply to existing claimants . Does this mean I'll only be getting the current basic and not the increased rate ?

Looks like it.

Hayseed wrote: »

Isf so it's absolutely outrageous and unfair. What can I do ?
Hayseed

Complain furiously?

hansi

Hayseed wrote: »

I took early retirement and paid 6 years voluntary contributions to get my full entitlement. Osborne says new £140 rate does'nt apply to existing claimants . Does this mean I'll only be getting the current basic and not the increased rate ? Isf so it's absolutely outrageous and unfair. What can I do ?
Hayseed

Are you getting more than £140 a week now? I suppose different people have differing rates of pension,eg, serps, graduated pension. My current state pension pays me more than £140. What the Chancellor said that it would not affect existing pensioners, by that I assume he means pensioners like myself. That's how I understand it.

nad1611

RuthMarianna wrote: »

I heard it mentioned in the budget that pensions will still be based on contributions. So I wonder how that would leave me with lots of missing years from not working while bringing up children and not going back since they grew up.

Currently my husband gets Pension Credit although he is only 60. So I wonder how the changes to Pension Credit will come in and whether it will be phased out so that we would be no worse off as I do not qualify for my pension till 2017 and even then I am not surewhether I would get the full flat rate proposed or not.

The theory of the flat rate pension is good if it works out in practice avoids leaving some people worse off.

Did you receive Child Benefit in your name while your children were growing up I believe you do get Contributions paid as a result. Need to check this, so it may not be as many missed years as you think. You can get a PensionForecast on the direct.gov site.