New flat rate pension

Graham_Devon

For once, it actually benefits the young, and those already on a pension or taking it before 2017 will not qualify.

Basically the idea of the new pension is to pay a flat rate of £144 (will be inflation adjusted) to everyone.

So, this will benefit the self employed, of which there are many more today and single parents, of which there are many more of today. For everyone else, it will work out pretty much the same.

Lots more tinkering, can all be found here:
http://www.bbc.co.uk/news/business-20989050

Comments appear pretty polarised. Some who will benefit from this can't quite believe it. Some around 60-64 years old are livid about it.

PaulF81

They wont like it when it turns out they will be 77 before they can become entitled to it.

Meadows

Flat rate for all regardless of whether you have worked all your life or sat around doing nothing (and I don't mean stay at home mums) :think:

The young will be lucky to see a pension!

ukcarper

Meadows wrote: »

Flat rate for all regardless of whether you have worked all your life or sat around doing nothing (and I don't mean stay at home mums) :think:

The young will be lucky to see a pension!

Same as now then as if it's all you get it is means tested and you get almost that.

CLAPTON

not enough details to say who will gain and who will lose

will young people in final salary schemes welcome paying 1.6% more of their salary ( in NI changes)?

what about transition arrangement for people who would otherwise get more than 144?

what exactly is the point of the announcement now without the full details?

michaels

What happens to the payments made so far to s2p that previously would have covered this extr? Will s2p be on top of the new increased basic pension or are those payments wasted an it would have been better to have opted out?

Graham_Devon

CLAPTON wrote: »

not enough details to say who will gain and who will lose

will young people in final salary schemes welcome paying 1.6% more of their salary ( in NI changes)?

what about transition arrangement for people who would otherwise get more than 144?

what exactly is the point of the announcement now without the full details?

There will be far fewer young people in final salary pension schemes compared to those aged around 60 today though.

Rinoa

Basically the new scheme means everyone will get the 'pension credit' equivalent ~ not just those who chose to make no plan or sacrifice to finance their old age.

CLAPTON

Graham_Devon wrote: »

There will be far fewer young people in final salary pension schemes compared to those aged around 60 today though.

indeed

so I will add that all young employed people (except FS) will be contributing to both the basic state pension and the second state pension (as one can no longer opted out)

so it is totally unclear whether or not these changes benefit the young

as I said without the full details it's impossible to know the winners and losers

wotsthat

Graham_Devon wrote: »

For once, it actually benefits the young, and those already on a pension or taking it before 2017 will not qualify.

I wouldn't bet on it. There are, probably purposely, not sufficient details to allow an average punter to work out the sums - so as usual we get manipulated by the government who get a head start telling us about how great this is without scrutiny. The BBC reporter on R4 this morning reckoned anyone born after 1980 would be worse off.

I can see the point of wanting to do something like this but we'll end up swapping cash today for a government promise tomorrow. It's a bit pointless trying to call in Edward Heath's promises today - it'll be the same for anyone born in 1980 trying to call in David Cameron's in 2055.

grizzly1911

No don't know the details but headlines heard suggest those with opted out pensions will pay more NI to provide the enhanced "benefit".

I wonder how this will work for NHS/Teachers who have recently had to uplift their contributions?

Increase in the qualifying period to 35 years. I was surprise that it was ever reduced to 30 years but an about turn so quickly must question the evidence used for some of these decisions. I do not believe they were concocted on the fag packets of either party.

What happens if the full 35 years aren't achieved and there is no private provision? For those with no private or insufficient provision o isn't the status quo still being maintained?

Seems to be about an uplift in NI for many dressed up.