We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has the flat rate pension been delayed or killed?
gadgetmind
Posts: 11,130 Forumite
I notice that the DWP's state pension forecasting is now working again, with the previous message saying "ixnay 'cos it's all changing" now missing in action.
Do peeps think they have delayed this for a rethink or if it's now doomed?
Do peeps think they have delayed this for a rethink or if it's now doomed?
I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
0
Comments
-
It seemed too good to be true...after all, it wasn't deemed affordable even in the boom years
import this0 -
There was an announcement earlier in the year that it is delayed due to complications. It is still on the chalkboard but all we know is that there are issues that are proving hard to resolve. What the issues are we can only guess. I suspect contracting out is one nightmare issue they have. Plus, they probably have realised that if no-one is actually going to be worse off but some are going to be better off then its pretty hard to end up cost neutral!I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
-
last time I read about this .
was that the Tories were worried about voters as they realize most of their voters are older folks. and if they went ahead it could cost them votes.?0 -
Yes one of the things was that some already over state pension age are reportedly up in arms about it not being "fair" on them. Despite them getting their state pension much earlier than people who'd benefit from the higher basic pension.last time I read about this .
was that the Tories were worried about voters as they realize most of their voters are older folks. and if they went ahead it could cost them votes.?0 -
Yes contracting out will be a nightmare, particularly explaining to those who've been contracted out that they won't get the full £140pw or whatever it is, because a contracted out deduction would have to be applied to make what they get consistent with those who never contracted out.There was an announcement earlier in the year that it is delayed due to complications. It is still on the chalkboard but all we know is that there are issues that are proving hard to resolve. What the issues are we can only guess. I suspect contracting out is one nightmare issue they have.
Lots of people will be worse off, the flat rate pension incorporates S2P/SERPS, so higher earners will be worse off than the state pension they'd have got under current rules (basic plus S2P).Plus, they probably have realised that if no-one is actually going to be worse off but some are going to be better off then its pretty hard to end up cost neutral!0 -
I suspect contracting out is one nightmare issue they have.
Dunno why. Even if they dock some of the (rumoured) additional then most peeps are quids in as sensibly invested contracted out money has done rather well.
What troubles me is that my wife was contracted out even during her HRP days. Surely they will adjust for this?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Yes one of the things was that some already over state pension age are reportedly up in arms about it not being "fair" on them. Despite them getting their state pension much earlier than people who'd benefit from the higher basic pension.
I will be getting my state pension next year (a year and a half later than I originally thought I would). I appreciate that some people have to wait for longer to get theirs as it is being brought in gradually. I am not up in arms about the fairness of all of this but I would rather everyone got the same pension when they do qualify. It must cost a fortune to administer different amounts of pension and maybe if existing pensioners got the flat rate too, it might mean that they don't have to have pension credits, top ups etc., which must cut out a level of administration.
It's your sentence " Despite them getting their state pension much earlier than people who'd benefit from the higher basic pension" I can't quite get my head around. We all have to work for the prescribed number of years to qualify for our pensions and I can't understand how anyone can have an issue with this.
My pension will be somewhere between the basic pension and the suggested flat rate. I am fortunate in that I also have my pension from teaching so don't have to apply for any extras. I would imagine that there are lots of pensioners who struggle because they don't feel comfortable, or know how to apply for pension credits etc.
My mother just accepted what she got and felt that it was not quite right to ask for more. A lot of older people can be quite proud and may lose out as a result.0 -
whitesatin wrote: ». It must cost a fortune to administer different amounts of pension and maybe if existing pensioners got the flat rate too, it might mean that they don't have to have pension credits, top ups etc., which must cut out a level of administration.
.
No it doesn't cost a fortune to administer the current system. There is no way that admin savings can fund the flat rate system... that would require many losers and well as winners.
In addition, unless you intend to withdraw council tax and rent support for the poorest pensioners these would still need to be means tested requiring broadly the same admin as now.0 -
whitesatin wrote: »I will be getting my state pension next year (a year and a half later than I originally thought I would). I appreciate that some people have to wait for longer to get theirs as it is being brought in gradually. I am not up in arms about the fairness of all of this but I would rather everyone got the same pension when they do qualify. It must cost a fortune to administer different amounts of pension and maybe if existing pensioners got the flat rate too, it might mean that they don't have to have pension credits, top ups etc., which must cut out a level of administration.
It's your sentence " Despite them getting their state pension much earlier than people who'd benefit from the higher basic pension" I can't quite get my head around. We all have to work for the prescribed number of years to qualify for our pensions and I can't understand how anyone can have an issue with this.
My pension will be somewhere between the basic pension and the suggested flat rate. I am fortunate in that I also have my pension from teaching so don't have to apply for any extras. I would imagine that there are lots of pensioners who struggle because they don't feel comfortable, or know how to apply for pension credits etc.
My mother just accepted what she got and felt that it was not quite right to ask for more. A lot of older people can be quite proud and may lose out as a result.
I'm an existing pensioner with a teacher's pension and I would lose over £30 per week if all pensioners got the flat rate, so not a totally good idea for people in my position!0 -
There will always be winners and losers, I suppose, no system will be perfect. I just think it could be simplified somehow.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards