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

StevieJ

wotsthat wrote: »

People who opted out of SERPS and S2P and paid into private pensions are potentially amongst the winners here because it seems that there isn't (currently) a mechanism to take this into account. Already there is no distiction between protected rights and non-protected rights.

It's why I opted out. Money in an account with my name on it is far more valuable than a government promise.

I don't think so, they could well be the losers with transitional deductions taking their basic state pension below the current basic state pension.

RenovationMan

I also opted out for a while and had about £12-£14k of 'protected rights' in my SIPP. They have just recently abolished the protected rights and the £12-£14k is now sat with the rest of my pension.

I assume this means that they consider the opt out money tobe mine. Shame I opted back in on their advice. One woners if they had this in mind all along and just wanted to screw us over?

RenovationMan

StevieJ wrote: »

I thought there was currently something called a pension saving credit that rewarded people for saving for retirement? Btw I think the minimum is around £142 not £137.

No idea what pensions savings credit is. I googled it but didn't find anything concrete. Could you enlighten us?

If it's part of pensions credit, then it will be disbanded when/if the flat rate pension comes in. I assume that the associated benefits will also die with pensions credit, such as council tax rebate, etc.

StevieJ

RenovationMan wrote: »

No idea what pensions savings credit is. I googled it but didn't find anything concrete. Could you enlighten us?

If it's part of pensions credit, then it will be disbanded when/if the flat rate pension comes in. I assume that the associated benefits will also die with pensions credit, such as council tax rebate, etc.

Yes it is part of pensions credit and means that if you provide for your own retirement you may be entitled to a top up above the minimum guarantee of £142.70, up to about an extra, about £20.

Savings Credit

The age from which you can get the Savings Credit is 65. However, from March 2019 this will gradually increase in line with the increase in State Pension age. If you're currently aged 65 or over and living in Great Britain you may be entitled to Savings Credit. You may get the Savings Credit on its own or with the Guarantee Credit. You may be entitled to Savings Credit if you:

• are aged 65 or over
• have made some provision towards your retirement such as savings or a second pension

If you have a partner, at least one of you must be 65 or over to get the Savings Credit.
The Savings Credit can be up to:

• £18.54 a week if you're single
• £23.73 a week if you have a partner

You may still get the Savings Credit even if the money you have coming in is up to about:

• £189 a week if you are single
• £277 a week if you have a partner

These amounts may be more if you're disabled, have caring responsibilities or certain housing costs, such as mortgage interest payments.

StevieJ

RenovationMan wrote: »

If it's part of pensions credit, then it will be disbanded when/if the flat rate pension comes in. I assume that the associated benefits will also die with pensions credit, such as council tax rebate, etc.

Are you suggesting that they may reduce the pension for some from £160 to £140 and then take away all the extras like 'rent paid' somehow I think not

wotsthat

StevieJ wrote: »

I don't think so, they could well be the losers with transitional deductions taking their basic state pension below the current basic state pension.

I'm understanding it the other way round. The losers will be those who stayed in SERPS and have built up big 'promises'.

I've not seen anything about transitional deductions. My view is that they'll be too complicated and costly to implement.

RenovationMan

StevieJ wrote: »

Are you suggesting that they may reduce the pension for some from £160 to £140 and then take away all the extras like 'rent paid' somehow I think not

No, as usual the boomers are taken care of. The new flat rate pension changes will not affect thse already in receipt of their pensions, they will continue with whatever they already receive.

It's now a MSE newsworthy story: https://forums.moneysavingexpert.com/discussion/comment/53031263#Comment_53031263

StevieJ

wotsthat wrote: »

I'm understanding it the other way round. The losers will be those who stayed in SERPS and have built up big 'promises'.

I've not seen anything about transitional deductions. My view is that they'll be too complicated and costly to implement.

I looked at this when it was first touted, it seemed that someone who had contracted out would initially receive the £140 but a deduction would be applied for every year that they were contracted out, in theory taking the value back to the value of the basic state pension, for someone who had always been contracted out.

StevieJ

RenovationMan wrote: »

No, as usual the boomers are taken care of. The new flat rate pension changes will not affect thse already in receipt of their pensions, they will continue with whatever they already receive.

It's now a MSE newsworthy story: https://forums.moneysavingexpert.com/discussion/comment/53031263#Comment_53031263

I don't mean those already retired, I mean future retirees, basically they couldn't survive if their rent and council tax were not paid for them.

grizzly1911

treliac wrote: »

Yeh, my thoughts too. How do 'they' calculate a so called ever-increasing lifespan? Does it take into account all those facing premature death from obesity, liver disease, drugs and other recent lifestyle complications.... along with the poor sods who are finished off by hard labour well into their old age?

Apparently life expectancy is now 10 years more from that in 70s (radio commentator today).

Why haven't we been seeing gradual incremental chipping away over the last 40 years rather than fundamental switch now?

I don't dispute that a percentage are living longer but I also believe that a far greater percentage have not seen a noticeable increase in longevity. I wonder how these figures are skewed by income.

Whilst we may have some better results from intervention in some cases obesity, heart, diabetes are on the rise.

IMO it is more about fudging the wider economic books than just age. By pushing it out we just delay the days of reckoning.