Penalised for putting a 'bit by for your old age' no longer

RenovationMan

"Flat-rate state pension prepared in Queen's Speech

A new flat-rate state pension and a system to automatically raise the pension age have moved a step closer.

The Queen's Speech has outlined plans for legislation that will overhaul the state pension system for new pensioners during the forthcoming Parliament.

The current full state pension is £107.45 a week, but can be topped up to £137.35 with pension credit.

This will be replaced by a new £140 flat rate, with inflation expected to push this up to £155 by 2015 or 2016."

"This is another big step towards a simpler, more generous state pension that no longer penalises people for saving. A new system will take millions out of means-tested benefits and will encourage people to take control of their own age by saving towards it."

http://www.bbc.co.uk/news/business-18005946

Finally.

pqrdef

I very much doubt if it'll work quite like that. No way are they about to give £140 to people who don't need it.

somethingcorporate

I will believe it when I see it!

RenovationMan

There are winners and loser. I was forecasted to receive a higher state pension than the £140 per week because of my S2P contributions, but I'm just happy that the anomoly where sensible savers were punished (brought in by Labour) will be abolished.

I'm also pleased that more people will be brought into the fold as far as working longer is concerned. I though the way they were phasing it in was too slow, especially where women were concerned. This just seems so much fairer all round.

"The state pension age will rise to 66 for both men and women by 2020.

The Queen's Speech outlined plans to increase the state pension age further to 67 between 2026 and 2028 - affecting those aged 52 or younger now."

vivatifosi

pqrdef wrote: »

I very much doubt if it'll work quite like that. No way are they about to give £140 to people who don't need it.

They will give with one hand and take with the other. People will get more money generally, but some who have worked for a long time and would be due more in SERPS could be worse off. Plus of course there's the small matter of raising the pension age at the same time. The government say that it's revenue neutral.

From next year people working for large companies (except those on very low wages) will need to opt out of pension schemes. This is the government staking a line in the sand that says, "this is what the pension is, this is what you'll get, but if you want anything else or to be in any way comfortable you have to pay for it".

RenovationMan

vivatifosi wrote: »

This is the government staking a line in the sand that says, "this is what the pension is, this is what you'll get, but if you want anything else or to be in any way comfortable you have to pay for it".

We're going back to basics with the benefit system where Government provides both a ladder and a safety net, so that there’s always a ladder of opportunity, and the safety net of social services. Those who choose the safety net as a way of life will now have to be prepared for that lifestyle to be somewhat curtailed.

macaque_2

vivatifosi wrote: »

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learn the A-E of melanoma = asymmetry, B = irregular borders, C= different colours, D=
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.
Dear Mr Vivatifosi

Is there any possibility that you could remove this preachy health message on each of your posts? I come on this website for light relief and if melanomas are going to get me, they are going to have to get in the queue. Its a bit like going to a resaurant and ordering steak only to have the waiter say; "how would you like it cooked sir, and by the way, here is a picture of advanced colonic cancer. Maybe you might prefer the vegetarian dish sir". The bottom line is that I would prefer to enjoy life to full and conk out before I become dependant on the tyrrany of underfunded social services.

Yours sincerely

Macaque

Graham_Devon

RenovationMan wrote: »

Finally.

Yer, and it will happen in around 2034 if you go by current "we will do this, one day" stories.

Hopefully it will be implemented by 2013, but I somewhat doubt it.

jamesd

The current system doesn't penalise people for saving. It rewards those with inadequate savings by topping up their savings with means tested benefits.

For those who are committed to inadequately providing for their old age this creates a disincentive for them to do any saving at all, because they will still get the same final income level.

The new plan increases the reward for inadequate savings by adding the savings to the benefits. That removes the disincentive.

chris_m

macaque wrote: »

Is there any possibility that you could remove this preachy health message on each of your posts.

Just turn off the "Show Signatures" option in your control panel and it'll be gone.

macaque_2

chris_m wrote: »

macaque wrote: »

Just turn off the "Show Signatures" option in your control panel and it'll be gone.

Are you saying that I turn off the relevant and sometimes funny signatures on this forum because a do gooder wants to 'save me' from myself.