MSE News: Government outlines flat-rate state pension

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
373 replies 47.8K views
"The Coalition's proposals include plans to introduce a single flat-rate state pension for new pensioners from 2017..."
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  • jobdone1jobdone1 Forumite
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    So i get penalized because i pay into a private pension THANK YOU But those who choose not to work and pays no ni or tax gets a pension
  • This is just typical of this condem government. Changing the goal posts yet again, is it any wonder that our young don't believe in pensions when their parents who have paid into the system all their working lives are going to be penalised.
  • jobdone1jobdone1 Forumite
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    EMJAY01 wrote: »
    This is just typical of this condem government. Changing the goal posts yet again, is it any wonder that our young don't believe in pensions when their parents who have paid into the system all their working lives are going to be penalised.

    How much more do they want from me, I do the right thing save into a private pension I WOULD RATHER HAVE THE MONEY NOW THAT I PAY INTO IT but no do the right thing and yes this b**dy government smack me in the face and make me pay more ni. This will not help people considering saving for their retirement.
  • WywthWywth Forumite
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    Am I missing something here?

    This is all about the state pension. What affect do these changes have on a private or employers pension? (which is paid on top of the state pension)

    What I do note, however, is that today many people are expected to go to university, so don't start their working life until they are at least 21.

    Add 35 years to that, and bang goes early retirement at 55 which was very popular not so long ago (especially with those who had a good employers or private pension)

    I know you don't get the state pension until the official retirement age, but if you need to make 35 years NI contributions, then you won't get full state pension even then if you retire early.
    (If you are a woman who takes time off to have a baby, you'll have to work even longer!)

    Mind you, people our age have always been told not to rely on a state pension ... and this goes to prove it. :(
  • FrogletFroglet Forumite
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    My husband has worked all his life from the age of 15 and paid in a lot of contributions.He misses this new higher pension by 3 months.So very unfair.He has some state second pension to come but not enough to get the full new rate.Because we have been prudent and have savings,plus we have saved for a small private pension he will get no pension credit.Yet those who have saved nothing and put nothing by will get more.

    I do not see why they cannot just forget the pension credit and give everyone a fair amount,perhaps a bit less than £144 but give it to EVERYBODY.
  • Wywth wrote: »
    Am I missing something here?

    This is all about the state pension. What affect do these changes have on a private or employers pension? (which is paid on top of the state pension)

    You're going to paying more NI contributions.
    Turn your face to the sun and the shadows fall behind you.
  • jobdone1jobdone1 Forumite
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    Yes more NI getting fed up now i work i earn i pay taxes and get punished even further go figure
  • edited 15 January 2013 at 1:06AM
    ArthurianArthurian Forumite
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    edited 15 January 2013 at 1:06AM
    What about all those people who paid 'extra' contributions by cheque to make up for years when they didn't work enough hours to qualify for the full state pension? Turns out they didn't need to pay after all.

    Too late now, though.

    I can't help thinking if HMRC was a private company someone would now be chasing them for the return of those cheques.

    EDIT: after several hours, I now think I was jumping to conclusions here. It seems you WOULD still have to pay extra voluntary contributions to qualify for the full 'flat rate' amount proposed.
  • Old_SlapheadOld_Slaphead Forumite
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    Froglet wrote: »
    My husband has worked all his life from the age of 15 and paid in a lot of contributions.He misses this new higher pension by 3 months.So very unfair.He has some state second pension to come but not enough to get the full new rate.Because we have been prudent and have savings,plus we have saved for a small private pension he will get no pension credit.Yet those who have saved nothing and put nothing by will get more.

    I do not see why they cannot just forget the pension credit and give everyone a fair amount,perhaps a bit less than £144 but give it to EVERYBODY.

    My sentiments exactly Froglet.

    After 49 years at work I will miss deadline by 1 month.

    Someone who's worket part time for 30 or 35 years will be getting £40pw more state pension than me - a figure that will increase each year assuming both have same percentage inflation increase.
  • jobdone1jobdone1 Forumite
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    Arthurian wrote: »
    What about all those people who paid 'extra' contributions by cheque to make up for years when they didn't work enough hours to qualify for the full state pension? Turns out they didn't need to pay after all.

    Too late now, though.

    I can't help thinking if HMRC was a private company someone would now be chasing them for the return of those cheques.

    Seems to me this is a ploy to do away with jobs the people that work out who's entitled to what, So we end up with one size fits all this is completely wrong.
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