Pensions & Pension credit

Steve_xx

Toneey wrote: »

I for one do not want the new pension, I did an online pension forcast yesterday and it said at todays rates I would receive a pension of £162.70 per week when I retire in 2015, I would also get Pension Credit for myself and my wife topping it up to £217.90 per week, now under this new pension scheme I will only receive £155 per week and get no Pension Credit for my wife who is 10 years younger than myself and will not be eligable for state Pension until she is 67, thats a financial loss of £62.90 per week. How can people not see that this is a scam so that the government does not have to pay out so much money to pensioners.

With respect, I can see and appreciate your point, but that's not the point of this thread. I'm trying to establish here how an individual would be treated within the parameters I have set.

Anthorn

To clarify, Pension Credit/Guarantee Credit is being phased out as the pensionable age for women is being gradually raised to 65. In line with that the qualifying age for Guarantee Credit is being incrementally raised until it's finally phased out.

The pension credit calculator might be useful:
http://www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_180167

As far as I know, there will be no change to Savings Credit.

Toneey

Steve_xx wrote: »

With respect, I can see and appreciate your point, but that's not the point of this thread. I'm trying to establish here how an individual would be treated within the parameters I have set.

Sorry about that Steve_xx, i'm afraid I was having a little rant on the side.

sleepless_saver

Steve_xx wrote: »

Ah right, I see. It will be interesting to see how a deferral would be treated.

My guess is they will plump for people getting the old style pension they would have got (increased by the deferral obviously) if they had not deferred. Apart from anything else, it reduces costs by stopping people like your friend from "playing the system" by deferring to get more.

Steve_xx

sleepless_saver wrote: »

My guess is they will plump for people getting the old style pension they would have got (increased by the deferral obviously) if they had not deferred. Apart from anything else, it reduces costs by stopping people like your friend from "playing the system" by deferring to get more.

It's a good point though isn't it? And, it will require clarification as I'm sure there will be others in the same situation as he is.

getting-sorted-sarah

I have not seen anything in writing to clarify this question, but based on benefits rules generally I think it is very unlikely that someone deferring SP would be entitled to claim at the new rate. When you defer you enter an agreement that the pension you have earnt will accrue incremental increases until you claim it, so that agreement should stand regardless of new legislation.

Steve_xx

Yes, you may well be right.

Steve_xx

I've just read online that even if you defer your pension you would be treated under the existing rules.

However, I've been reading a little about SERPS & SP2. My friend might be able to get a top up with these. He had a long period of unemployment through the 1980's and part through the 1990's and so I understand from what I read that he would not be able to get any bnefit from SERPS or SP2 for any unemployed period. I cant just remember when he started to be continuously employed. He has certainly been employed for the past 12 years, but will clarify that with him later.

Will he be able to work out how much benefit he may get from the SERPS/SP2, and if so how can he work it out? Should he contact the Pension Service people and would they be able to tell him what his likely entitelment would be when he retires?

I am assuming that this SERPS/SP2 benefit is payable in addition to his State Pension and any Pension Credit?

He does not contribute to any private pension scheme, nor has he ever done so. His earnings are currently around 16k and heve never been more than that.

sleepless_saver

Steve_xx wrote: »

I've just read online that even if you defer your pension you would be treated under the existing rules.

Will he be able to work out how much benefit he may get from the SERPS/SP2, and if so how can he work it out? Should he contact the Pension Service people and would they be able to tell him what his likely entitelment would be when he retires?

He can ask the Pension Service for a state pension forecast. See link for how to do this.

I did notice on another thread that some people are having problems getting a forecast but it's the only way he will find out what his pension including SP2 etc is likely to be, subject of course to "triple lock" increases between now and when he draws it.

Steve_xx

sleepless_saver wrote: »

He can ask the Pension Service for a state pension forecast. See link for how to do this.

I did notice on another thread that some people are having problems getting a forecast but it's the only way he will find out what his pension including SP2 etc is likely to be, subject of course to "triple lock" increases between now and when he draws it.

Thanks for that. what does "triple lock" increases mean?