MSE News: Budget 2012: Single state pension plan confirmed

taktikback

but you get the SERPS and S2P you've built up over 35+ years without any reduction - or am I missing something?

Tancred

The government's plans should be clear on Monday, when more details are released. Whatever happens, the CPI indexation means that we will all lose out in the long term. Also, Labour's policy on pensions indexation isn't clear at all. My hope is that if they win the 2015 election they would replace CPI with RPIX, which is a fairer way of calculating inflation, but there is no sign of this as yet.

The ConDems are keeping their powder dry at present, but a war against pensioners is inevitable to meet the government's brutal deficit reduction targets. My belief is that the annual tax-reliefed amount to contribute to a pension scheme will be reduced to £30k a year and then frozen solid for years to come. The 40% and 50% tax reliefs will also disappear and the 25% tax-free lump sum on retirement will no longer be available. Further to this, all pension benefits will be means tested or removed altogether. The pension age will also be pushed to 70 for all current 40somethings and 75 for people currently in their 20 and 30s.

If you are now younger than 50 do enjoy your working life because your retirement will be tragic, painful and humiliating. if you think it's bad now, it's going to get much, much worse, believe me.

Tancred

Southend1 wrote: »

I wonder how politicians think they are helping people prepare for retirement when they move the goalposts every five minutes? Hopefully there will be a pledge to increase the flat rate pension in line with (a realistic index of) inflation in perpetuity and not to change pension rules for at least another 50 years. Otherwise why would any young person starting work ever believe in pensions? They will be watching what is happening to today's workforce and deciding that its much better to blow all your earnings as soon as you're paid!

The current government does not want people to prepare, because that means taking actions that can reduce the tax take. They deliberately want to create a situation of permanent uncertainty and anxiety, in the hope that people will just give up and resign themselves to old age poverty. I hope Labour has some better plans but I have yet to see any details from them. What is certain is that Miliband cannot be any worse than the Blair-Brown double act, but hardly fills me with confidence. Choosing between the ConDems and Labour is like trying to choose between Lucifer and Satan.

cyclonebri1

Tancred wrote: »

The current government does not want people to prepare, because that means taking actions that can reduce the tax take. They deliberately want to create a situation of permanent uncertainty and anxiety, in the hope that people will just give up and resign themselves to old age poverty. I hope Labour has some better plans but I have yet to see any details from them. What is certain is that Miliband cannot be any worse than the Blair-Brown double act, but hardly fills me with confidence. Choosing between the ConDems and Labour is like trying to choose between Lucifer and Satan.

And that has just stripped any shred of credibility from everything you have said so far.

They can't organise the proverbial pie up in the brewery, let alone fulfil your conspiracy theory ploy.:D:D

Old_Slaphead

taktikback wrote: »

but you get the SERPS and S2P you've built up over 35+ years without any reduction - or am I missing something?

Presumably that will equate to mavbe an extra £50-60 pw.

People reaching SPA after 2017 will get £37pw extra even if they've contributed nothing to S2P.

gadgetmind

Old_Slaphead wrote: »

People reaching SPA after 2017 will get £37pw extra even if they've contributed nothing to S2P.

I'm currently projected to be getting £107.45 + £38.91 S2P = £146.36.

Under the new rules, will that £38.91 I'll have contributed towards pretty much disappear leaving me with £2 more than the new basic?

I was also contracted out for a decade or so, which they say will reduce things further. Could I end up with less than someone who's never paid enough NI to get S2P or at least have wasted my contributions?

I could see me wife, who's worked for perhaps five years total but will have the full 35 years, will be getting the same as me, or perhaps more!

Old_Slaphead

gadgetmind wrote: »

Under the new rules, will that £38.91 I'll have contributed towards pretty much disappear leaving me with £2 more than the new basic?

How do you calculate how much S2P you'll be getting if you've been contracted out for some time ?

The quotes from Govt website don't make any allowance for such periods.

gadgetmind

Old_Slaphead wrote: »

How do you calculate how much S2P you'll be getting if you've been contracted out for some time ?

Get a statement showing what you have now and then work out what extra you'll earn. The calculation is complicated as the contribution of your NI towards S2P is being tapered off even though NI isn't!

Old_Slaphead

gadgetmind wrote: »

Get a statement showing what you have now and then work out what extra you'll earn. The calculation is complicated as the contribution of your NI towards S2P is being tapered off even though NI isn't!

The statement I have includes a caveat which says that any periods of contracting out between 1968 and 1997 have not been allowed for.

Any idea what's the calculation or checking the figures ?

gadgetmind

I *just* managed to understand my own position, and it wasn't easy. No way do I think I could go through it all for someone else! I don't think even the Pensions Service understand it.