More than I expected

zaksmum

Just had my pension forecast, to begin in March 2013, and it's more than I expected at over £135 a week!

There's the basic pension and some additional pension, whatever that is.

I thought state pension was a lot less than that?

sparkycat2

zaksmum wrote: »

Just had my pension forecast, to begin in March 2013, and it's more than I expected at over £135 a week!

There's the basic pension and some additional pension, whatever that is.

I thought state pension was a lot less than that?

There are two state pensions.
SP State Pension contributions based on number of years contributed.
S2P State Second Pension contributions based calculated off earnings over the contribution period.

barnaby-bear

zaksmum wrote: »

Just had my pension forecast, to begin in March 2013, and it's more than I expected at over £135 a week!

There's the basic pension and some additional pension, whatever that is.

I thought state pension was a lot less than that?

If you didn't contract out - there was a second scheme that favoured low-moderate salaries - sounds like you didn't contract out. It kind of pays relative to your NI contributions - where are the basic is just universal. So in a lot of ways more like a private pension. Basically if you worked most of your life on a not amazing salary - it's intended to reflect you paid into the NI system and give you a bit more back above someone who's not worked....

http://en.wikipedia.org/wiki/State_Second_Pension
You can't contract out now...

it was SERPS then S2P, nobody really understood them!

http://www.fool.co.uk/Pensions/guides/The-State-Second-Pension.aspx
http://www.thisismoney.co.uk/money/pensions/article-1585149/The-State-Second-Pension.html

zaksmum

barnaby-bear wrote: »

If you didn't contract out - there was a second scheme that favoured low-moderate salaries - sounds like you didn't contract out. It kind of pays relative to your NI contributions - where are the basic is just universal. So in a lot of ways more like a private pension. Basically if you worked most of your life on a not amazing salary - it's intended to reflect you paid into the NI system and give you a bit more back above someone who's not worked....

http://en.wikipedia.org/wiki/State_Second_Pension
You can't contract out now...

it was SERPS then S2P, nobody really understood them!

http://www.fool.co.uk/Pensions/guides/The-State-Second-Pension.aspx
http://www.thisismoney.co.uk/money/pensions/article-1585149/The-State-Second-Pension.html

I haven't been able to work for many years though, so had no earnings at all.

sparkycat2

zaksmum wrote: »

I haven't been able to work for many years though, so had no earnings at all.

There are 19 activities that can credit someone in to the Basic State Pension and, of these seven also qualify the individual for the State Second Pension

The following circumstances currently qualify people for credits to BSP but not S2P: starting credits for 16-18 year olds; approved training courses; jury service; former prisoners with quashed convictions; men aged 60-64; Jobseekers Allowance; short-term Incapacity Benefit; Statutory Sick Pay; Statutory Adoption Pay; Working Tax Credit; Maternity Allowance; Unemployability Supplement; unemployed and actively seeking work.

You get modest S2P contributions if you are:
looking after children under 12 years old and claiming Child Benefit
caring for a sick or disabled person for more than 20 hours a week and claiming Carer's Credit
a registered foster carer and claiming Carer's Credit
receiving certain other benefits due to illness or disability

I think you can also inherit state pension from a spouse.

zaksmum

sparkycat2 wrote: »

There are 19 activities that can credit someone in to the Basic State Pension and, of these seven also qualify the individual for the State Second Pension

The following circumstances currently qualify people for credits to BSP but not S2P: starting credits for 16-18 year olds; approved training courses; jury service; former prisoners with quashed convictions; men aged 60-64; Jobseekers Allowance; short-term Incapacity Benefit; Statutory Sick Pay; Statutory Adoption Pay; Working Tax Credit; Maternity Allowance; Unemployability Supplement; unemployed and actively seeking work.

You get modest S2P contributions if you are:
looking after children under 12 years old and claiming Child Benefit
caring for a sick or disabled person for more than 20 hours a week and claiming Carer's Credit
a registered foster carer and claiming Carer's Credit
receiving certain other benefits due to illness or disability

I think you can also inherit state pension from a spouse.

I've been getting disability benefits, maybe that's why the pension is so much then.

barnaby-bear

sobiette wrote: »

That's not bad then. You get a hugely uplifted state pension because you have lived on benefits!!

I though that only those that paid more in got more out. Someone earning NMW would get a lot less than someone who had a average salary of £100,000pa.

Doesn't seem to work that way.

I think we should all pack in work and try to get on the benefit roundabout - you seem to be quite well looked after.

Not working because you *can't* i.e. women looking after young children, ore were caring for relatives or medically *can't* means you get a little more than those who could work but didn't but could have.... I think they struck the balance quite well on what's fair.... £135 a week above the £107.45 (?) basic is hardly an incentive to spend 45 years on disability benefits... from the OP's username I'm guessing she has done a fair amount of childcare. No I wouldn't resent someone who did something useful or had a debilitating illness preventing them working getting more than someone who watched JK for no good reason.

"S2P also aims to help those whose working lives have been interrupted or cut short – something that SERPS didn't do."


If you are a carer looking after a child or a person with a long-term illness or disability, the S2P may allow you to accumulate an additional pension, provided you are claiming Child Benefit or Home Responsibilities Protection (HRP). This is also the case if a long-term illness or disability is preventing you from working, provided you qualify for long-term Incapacity Benefit. This additional pension will be paid on top of your basic State Pension.

sparkycat2

sobiette wrote: »

That's not bad then. You get a hugely uplifted state pension because you have lived on benefits!!

Being ill or disabled is rarely a lifestyle choice.
The unemployed do not get S2P contributions.

They also need to live to state pension age. Most people so ill/disabled they can not work have a significantly reduced life expectancy.

sobiette wrote: »

I though that only those that paid more in got more out. Someone earning NMW would get a lot less than someone who had a average salary of £100,000pa.

Doesn't seem to work that way.

The eligible ill/disabled get treated the same as someone employed PAYE earning over the Lower Earnings Limit £5,564 but less than the Lower Earnings Threshold £14,700 in that they are treated as if they earned the Lower Earning Threshold £14,700 2012-13

I believe (maybe wrong) it applies to those who are entitled to long term incapacity benefit or severe disablement allowance, provided that they have worked for and paid Class 1 NI contributions for at least one tenth of their working life since 6 April 1978

SERPS I believe was less generous.

sobiette wrote: »

I think we should all pack in work and try to get on the benefit roundabout - you seem to be quite well looked after.

You are free to quit your job and go try to live on JSA or go seriously maim yourself and try to live on disability benefits. Personally I would not recommend it, as most of those on benefits I know struggle to make ends meet or have serious health problems I would not want if you offered me a fortune. Many seem to have little money and poor health.

cbrown372

sobiette wrote: »

That's not bad then. You get a hugely uplifted state pension because you have lived on benefits!!

I though that only those that paid more in got more out. Someone earning NMW would get a lot less than someone who had a average salary of £100,000pa.

Doesn't seem to work that way.

I think we should all pack in work and try to get on the benefit roundabout - you seem to be quite well looked after.

Well you would know all about the benefit roundabout Andy.

barnaby-bear

sobiette wrote: »

Yes I will agree that those people should be helped. My comment was also concerned about those that have paid a firtune into the syatem and at the end of the day see very little coing back by way of state pension.

As an example dad has worked for over 40 years with no unemployment, sickness etc. His salary peaked in the mid to late 90's. for the 7 years before he turned 60 his net monthly salary was £5633 - (gross in excess of £100,000pa) at age 55 circa.
Yet his state pension for all of that money paid in is £167.84 a week!!!

The state pension is a balance and NI S2P contributions are small and S2P more generous than what was on offer opting out... if someone on £100k spent it all on bling and ended up on £167 a week rather than making their own provision through savings or a pension you do have to wonder! The state pension is a basic, what society judges is needed averaged out with this small weighting to value those morals and values we adhere too... dad gets more than 50% of pensioners on basic he should be laughing....

clemmatis

sobiette wrote: »

???????????? Andy??? not me

A different boring old fart troll, you say?