10% increase to £140 pension now £155

wakeupalarm

The new £140 state pension has increase by 10% and is now expected to be at least £155!

http://www.bbc.co.uk/news/business-12924666

CLAPTON

that simply assume inflation will be about 2.5% for the next 4 years maybe

[Deleted User]

I see there is no reference to Serps/S2P in the article - perhaps details of these will be announced next week. I won't be happy if my contributions to Serps/S2P will be abolished.

SallyG

"But it will only be available to people reaching the state pension age from now, rather than existing pensioners."

Read more: http://www.thisismoney.co.uk/pensions/article.html?in_article_id=528895&in_page_id=6#ixzz1IGb221y6

Any way round that for an existing [!] basic state pensioner?
Will £155 a week gross become the new pensioner-poverty threshold ?
Will someone on the old rate be able to claim non-means tested benefits to bring them up to the new rate?

dougz_2

"It is assumed that inflation-linked increases will take the means tested guarantee up to around £155 by the middle years of this decade," said the BBC's chief economics correspondent, Hugh Pym.
"The government may decide to bring in the new single pension at a slightly higher level."

Which, under the current means testing rules, would actually be a massive financial loss for some poorer pensioners, because their new found failure to qualify for the Pension Credit Guarantee would cause them to lose a whole raft of other benefits, such as Council Tax and Housing.

peterg1965

Is this meant to be a universal State pension figure of £155/week? Or is it reduced for those that took responsibility for planning for retirement?

lvader

Hopefully this will mean that it will pay to save for a pension even if it's only a small amount.

dunstonh

peterg1965 wrote: »

Is this meant to be a universal State pension figure of £155/week? Or is it reduced for those that took responsibility for planning for retirement?

It is meant to stop the system where those that do something for themselves do not get penalised. Even if it ends up being a small amount. It will be state pension plus your own.

whitesatin

I am one of the people affected by the raising of retirement age. I am due to get my state pension in March 2013 as a result though I am 60 this autumn.

I understand that this new pension will be for people getting their pension after I am due mine. I was wondering whether if I opt to defer my pension, will I get the new rate or will all that deferrment thing be done away with.

I really do feel miffed about all of this. I can accept having to wait to get my pension due to people living longer but I have paid 37 years contributions but only needed 30 as it turns out and now I am told I won't be getting the new rate. I am sure I am not alone in this. I won't qualify for any top up benefits in the meantime due to a smallish personal pension.

I am left wondering whether I should have bothered contributing to my personal pension. I have never claimed benefits of any kind other than child benefit.

bilbo51

dunstonh wrote: »

It is meant to stop the system where those that do something for themselves do not get penalised.

Did you really mean that or is there a negative too many?

zagfles

dougz wrote: »

"It is assumed that inflation-linked increases will take the means tested guarantee up to around £155 by the middle years of this decade," said the BBC's chief economics correspondent, Hugh Pym.
"The government may decide to bring in the new single pension at a slightly higher level."

Which, under the current means testing rules, would actually be a massive financial loss for some poorer pensioners, because their new found failure to qualify for the Pension Credit Guarantee would cause them to lose a whole raft of other benefits, such as Council Tax and Housing.

Why? Pension credit may passport people onto max HB/CTB, but I would imagine the applicable amount for pensioners would be set at about the same level as the new state pension so anyone with that as their only income would still get max HB & CTB.

In fact I've just checked the current AA for the over 65's - the 2011/12 amount is £157.90 for a single person! And £236.80 for a couple. So add a few years inflation to those and a single pensioner's AA will be way above the new pension level and a couple's will be pretty close. So couples may lose a bit of HB/CTB but single pensioners won't.