New State Pension Proposals

FLAPJACK

I should think in the long run the most "cost effective" solution of the population living longer would be the Government introducing a "Defined Age Limit".

Euthanasia.....I'm sure the Government could do a "non-means tested" deal with Easy Jet and Dignitas in Switzerland.

Plus of course the shares in the drug companies involved will make a nice return! And I'm sure Government officials will probably have a "buy out" scheme...I mean they don't have to worry about their State Pension do they?

Watch the 70's film "Soylent Green".... it could be the answer!

StevieJ

Dominic9 wrote: »

It looks like that is the case, and for a very long time too...from the document:



:think:

What it does of course is allow the offset to take the pension below what is the now the basic state pension, if they so wish. So we could have an effective means test of the basic state pension and the opposite of their stated intention of encouraging saving for retirement.

zagfles

StevieJ wrote: »

What it does of course is allow the offset to take the pension below what is the now the basic state pension, if they so wish. So we could have an effective means test of the basic state pension and the opposite of their stated intention of encouraging saving for retirement.

But the offset would only apply to periods contracted out of SERPS/S2P, and contracting out will be abolished. So no future pension savings would increase the offset once this happens.

But depending how they work out the offset it could reduce the amount below the current BSP, but if it does this should be reflected in increased GMP from the contracted out scheme (as I understand it deferred GMPs increase by a certain percentage depending on when it went deferred, can be 6%! and the COD increases accordingly).

slodge

I'm due to retire in sept 2014 if i defer my pension until april 2015 would i be eligible for the new pension ?.

zagfles

slodge wrote: »

I'm due to retire in sept 2014 if i defer my pension until april 2015 would i be eligible for the new pension ?.

Very much doubt it - they'll almost certainly base it on state pension age. I'm pretty sure that's what they did with the change in April last year where people reaching state pension age on 5 April needed 44 years but those born one day later only needed 30 years.

wobblegobble

"But depending how they work out the offset it could reduce the amount below the current BSP, but if it does this should be reflected in increased GMP from the contracted out scheme (as I understand it deferred GMPs increase by a certain percentage depending on when it went deferred, can be 6%! and the COD increases accordingly"

Am I the only person who does not understand a word of this?

bilbo51

wobblegobble wrote: »

"But depending how they work out the offset it could reduce the amount below the current BSP, but if it does this should be reflected in increased GMP from the contracted out scheme (as I understand it deferred GMPs increase by a certain percentage depending on when it went deferred, can be 6%! and the COD increases accordingly"

Am I the only person who does not understand a word of this?

I was doing alright until COD. Read back through the thread to get the gist if you're really stuck...

Stompa

slodge wrote: »

I'm due to retire in sept 2014 if i defer my pension until april 2015 would i be eligible for the new pension ?.

Not according to the government minister who was asked that very question on rhe news yesterday.

zagfles

bilbo51 wrote: »

I was doing alright until COD. Read back through the thread to get the gist if you're really stuck...

Contracted Out Deduction.

Basically if you're in a contracted out scheme, instead of getting the second state pension (SERPS etc) your scheme provides a GMP (Guaranteed Minimum Pension) which should amount to about the same.

artic99

zagfles wrote: »

Contracted Out Deduction.

Basically if you're in a contracted out scheme, instead of getting the second state pension (SERPS etc) your scheme provides a GMP (Guaranteed Minimum Pension) which should amount to about the same.

Having been contracted out for 9 years but with 30+ years still to work would the 30 years with full contributions when the options removed next year negate a deduction? If not, from just the state pension point of view I'd have been better off not working/paying NI at all for the contributing 9 years which seems a bit odd