Additional state pension

elantan

James , i didnt fully understand all of what you were saying ( sorry i am a bit thick ) am i to understand that the extra i have paid in N.I to pay for my serps will be phased out ? And that i will pay less in N.I ?

jamesd

elantan, too soon to say but one proposal is that all past accrual (years of NI payments) will continue to get the same amount of income as it does under the current system while future accrual will add the same fixed amount for everyone.

The extra NI paid in for SERPS won't go away, it'll just be adding a fixed amount per year instead of an amount that depends on income. Your NI payments won't be reduced. SERPS has already been replaced by S2P which has a subsidy for lower earners at the expense of others.

But all of this depends on what is actually decided, I'm just describing one possible option. It's too soon to know what will really be proposed and it could be different.

Benson61

Well it still seems that the outcome is uncertain? I retire in 2016 and had expected that Serps / SSP would make a substantial difference to my pension income but it looks like this is in doubt. My projection through "The Gateway" doubled the Basic pension with SERPS so I figure i'm likely to lose 25% of what I might have had if it goes to a flat £140 / £160 per week?

bilbo51

Benson61 wrote: »

Well it still seems that the outcome is uncertain?

It is.

Benson61 wrote: »

I retire in 2016 and had expected that Serps / SSP would make a substantial difference to my pension income but it looks like this is in doubt. My projection through "The Gateway" doubled the Basic pension with SERPS so I figure i'm likely to lose 25% of what I might have had if it goes to a flat £140 / £160 per week?

I think you'll have to wait and see... personally I think it would need a minor miracle for the Government to get this all sorted out satisfactorily for implementation by 2016...

Rupert_Bear

bilbo51 wrote: »

It is.

I think you'll have to wait and see... personally I think it would need a minor miracle for the Government to get this all sorted out satisfactorily for implementation by 2016...

My feeling is they will want it all in place in time for the next election by May 2015.

jamesd

So all of those who will lose out can vote against them?

elantan

i think what is deff coming through is that it is going to be a very confusing time for alot of people, and there will be people that will loose out and people that will win ...

i do think the pension system needs to be overhauled along side the nhs and benefit system, i can accept that i will loose out on money as the price to get it more fairer for some people, but i will also say that i find it frustrating when people dont even try and save something towards their retirement

i dont earn alot, never have ( worked around hubby's shifts for the sake of the family) but i have tried to save for my retirement whenever i could, not as much as i would like but what i could afford,

i know of plenty of people that are not interested in saving even a
little bit, their attitude is the government can keep me i pay my taxes.

i think the thing that will frustrate me when i retire though is these same people will claim every benefit ( housing benefit etc) and get them and i will get nothing because i prudently tried to save a bit and therefore will knowing my luck be 50p over the benefits income ( i was 37p over with working tax credits ) ... i dont think for one second i can save enough to have a comfortable retirement life, but my aim is to save enough so that i am not just surviving

i have a feeling that the people i know that arnt saving a penny will be marginally ( due to benefits etc) better off in retirement that me... and will not be going without things now to pay for that, which i am ... not alot but yes i do think before purchasing things and getting into debt