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New flat rate pension
Comments
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grizzly1911 wrote: »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.
it's pretty certain that the current 9.6% NI contributions for state sector Final Salary schemes workers' will rise to 12% (one assumes pretty soon) (obviously a nice extra cash flow for the government)
and the proposal isn't for a 'flat rate' pension; the proposal is for a max flat rate pension which is to be reduced if one doesn't have the full 35 years credit of NI
as I've said not enough detail yet.0 -
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?
It's difficult to say definitely,but it looks like those who've contributed to Serps and sp2 will get an enhanced Pension. There was talk of a cash payout for those who'd made additional contributions,but that now looks a no no.0 -
More for young people to find to pay for unaffordable boomer entitlements.0
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Graham_Devon wrote: »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.
If people in that group were to defer taking their pension until 2017 when the new rate comes in, I wonder whether they would get the new fixed level or something still based off what they would have got at 65, and it if is the new level whether they would be better of deferring.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
and the proposal isn't for a 'flat rate' pension; the proposal is for a max flat rate pension which is to be reduced if one doesn't have the full 35 years credit of NI
as I've said not enough detail yet.
If you don't get the full 40/30 years now and fall under the pension guarantee arrangements how will that change going forward if you don't get a full 35 years and are in the same position. I can't believe that there won't be a catch all backup unless there is some draconian policy shift.
As you point out increased tax (NI) = cash flow now with no guarantees."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
In 4 years time the boomers are going to receive more pension - financed by the rest of us.....no surprises there then! :mad:Turn your face to the sun and the shadows fall behind you.0
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grizzly1911 wrote: »What happens if the full 35 years aren't achieved
According to the BBC you get a percentage say 31/35grizzly1911 wrote: »Seems to be about an uplift in NI for many dressed up.
I suspect it's a con to get us all to pay more tax:cool: Another condem cunning planTurn your face to the sun and the shadows fall behind you.0 -
There's plenty of talk about needing 35 "qualifying" NIable years (ie work or SAHM), but nothing about what happens for those who havn't worked, or havn't got 35 Niable years.
Surely there'll still be a safety net for those too, otherwise they'll be penniless. So, it seems there's still no real incentive to work rather than skive?
Also, what about the other state benefits, i.e. rent - presumably "poor" pensioners will still get their rent paid as £150 is still inadequate to pay rent as well as all other costs.
So, it doesn't seem as if it is a replacement for current means testing as it's claimed to be?0 -
Looks like all those SERPS payments were one of my poorer "investment" decisions :eek:'In nature, there are neither rewards nor punishments - there are Consequences.'0
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posh*spice wrote: »In 4 years time the boomers are going to receive more pension - financed by the rest of us.....no surprises there then! :mad:
One day your pension will be funded by the younger people of the day, that's the way it works. Or don't you plan on living that long ?No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0
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