MSE News: Budget 2012: Single state pension plan confirmed

StevieJ

zagfles wrote: »

But that's the problem with the current rules, blame Gordon Brown!

Was it not always like that just with a different name i.e. MIG and before that Income support?

StevieJ

gadgetmind wrote: »

Don't confuse retirement age and state pension age. Most people retire before state pension kicks in and I'd expect this to be even more common in future.

Fair enough, what I meant to say was 'wait a year longer for their state pension'

Old_Slaphead

gadgetmind wrote: »

Not enough info, sorry!

See the worked examples here.

http://www.scottishlife.co.uk/scotlife/web/site/Adviser/TechnicalCentralArea/Informationguidance/General/TheStateSecondPensionExplainedPage.asp

I cheated and looked at what accruals I was getting between statements. Note that S2P accrued so far is also boosted along with state pension.

This is partly why S2P had to die - no-one has got a sodding clue what they'll get.

I looked at Scot Life website and gave up.

Will have to get my braincells into gear and have another go.

My statements show a reduced amount over last 5 years even thought I've been contracted in ??????

Old_Slaphead

StevieJ wrote: »

How are final salary pensioners gaining? they will face a deduction for contracted out years?

But they get to buy them back cheaply

For an average of approx £350pa over 9 years (ie the extra contracting in cost) they get to recover the £37pw (from £107 to £144)- a breakeven of about 2 years in extra pension.

gadgetmind

gadgetmind wrote: »

The above could be wrong, very wrong.

It was wrong but not very wrong.

Band 1 is now £1.70

Band 2 on £25k is currently 38.8p but this phases down to 0p by 2030.

However, over five years to 2017 it doesn't make much difference with so little band 2, so I reckon you'll get another tenner of S2P by the time the changes come through.

peterg1965

Old_Slaphead wrote: »

My reading of it was that you'll get the £107 but have the opportunityto clawback the difference over approx 9 years at £4.11 pa.

So by 2026 you'll be back to the £144 at today's values

Thanks, that makes a little more sense now. For my wife, in the NHS Pension scheme FS (1995) section, she has more than 30 years NI (probably more like 35), she currently has 18 years full time equivalent years towards the NHS pension and would have accrued 10 years NI "credit" when she was not working due to bringing up the children. Now, do the NI credits, count towards the full NI contributions required to get her to the full single tier pension?

If they don't I cannot see her working beyond 2017, so she will only get the £107 State pension when she eventually reaches SPA in 2029.

gadgetmind

Old_Slaphead wrote: »

My statements show a reduced amount over last 5 years even thought I've been contracted in ??????

That doesn't sound right but my wife's S2P also went backwards.

gadgetmind

peterg1965 wrote: »

Now, do the NI credits, count towards the full NI contributions required to get her to the full single tier pension?

Yes but get a state pension statement for her to check they were recorded correctly.

peterg1965

gadgetmind wrote: »

Yes but get a state pension statement for her to check they were recorded correctly.

Thanks, does a standard State pension statement show what type of NI contributions were made into it?

So if she has 10 years of full NI credits, this should/could be sufficient to take her up to the full singke tier £144 along with her 25 years or so of contracted out NI contributions.

gadgetmind

peterg1965 wrote: »

Thanks, does a standard State pension statement show what type of NI contributions were made into it?

Not the basic ones as they just show number of years. I'm told you can get a full breakdown but I've never bothered.

So if she has 10 years of full NI credits, this should/could be sufficient to take her up to the full singke tier £144 along with her 25 years or so of contracted out NI contributions.

There is a deduction for the contracted out years but no details have yet emerged.