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MSE News: Government outlines flat-rate state pension
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Yet another in the "have not got a clue what I will get" camp. Retired at 55 with a SP date of 2019. I think I have got 37 years in the bag. My current forecast is full basic SP + £16 Grad/SERPS/S2P with about 30 years contracted out. Hopefully I will get at least the old amount, MrsM should be better off by about £15pw. I hope future forecasts are going to make things clear and that they get the new figures up and running quickly. To add to the chaos I will also be subject to the Alex Salmond factor !!0
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Yet another in the "have not got a clue what I will get" camp. Retired at 55 with a SP date of 2019. I think I have got 37 years in the bag. My current forecast is full basic SP + £16 Grad/SERPS/S2P with about 30 years contracted out. Hopefully I will get at least the old amount, MrsM should be better off by about £15pw.
My guess is that there will be no change in your position so you will just get what you were expecting to get anyway but no more.
Your protected amount will be the greater of
a) £144 (as you have 35 years) less the contracted-out deduction and
b) current state entitlement of £107 (as you have 30 years) + £16 = £123
Not clear how they will calculate the contracted-out deduction but if I had to guess I would say they would allow for reduction in both the employee and employer NI and incentive payments for contracting-out so it could be a hefty deduction making b) larger.I came, I saw, I melted0 -
Hopefully I will get at least the old amount
This is guaranteed. They give a fancy new calculation, but if by 2017 you'd have been getting more under current system, that's what you get. You can then pay more NI to get to the £144 level, which you can do via class 3 contributions or even class 2 self-employed contributions.
Dunno if you can do this with extra years *pre* 2017 - will need to read white paper again.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 -
The schemes have stated that they will change the qualifying years, e.g. if it was 40/60 previously to get a full pension (i.e.two thirds), it may be 40/65 in the future.
FYI, my final salary scheme (Higher Ed) was based on 80ths not 60ths however, I believe it has just changed.
VigmanAny information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.0 -
Am gradually reading through the White Paper re SERPS built up already.
It talks about a 'protected payment to recognise pre implementation qualifying years'
Maybe those with Second State Pension will get something?
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Maybe those with Second State Pension will get something?
Yes, see sections 84 to 86. Whatever earned up until 2017 will be protected but you don't be adding any more.
If under both new system and old, you're still sub £144 then you can reach this level with post implementation qualifying years.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 -
So with say 31 qualifying years I might get say 31/35th of the new flat rate plus a bit of protected rights re SERPS minus a deduction for the years of contracting out where GMP has built up in an occupational scheme.
Anyone know how much it currently costs a non worker to buy a year of NI credits?0 -
So with say 31 qualifying years I might get say 31/35th of the new flat rate plus a bit of protected rights re SERPS minus a deduction for the years of contracting out where GMP has built up in an occupational scheme.
Anyone know how much it currently costs a non worker to buy a year of NI credits?
No that appears to be wrong as you seem to be mixing up the two calculations that form the guarantee. Read my previous post that sets out the position.
Or are you talking about some protected rights from a previous contracted-out personal pension which is additional but not part of what the state itself pays out, albeit it was funded by the state.
It could be that paying class 3 contributions before 2017 is wasted money.
If you pay class 3 before 2017 you may increase part a) of my earlier calculation but it won't affect part b). So you get no additional state pension through the class 3 contributions.
Until you have paid enough class 3 to bring part a) up to part b) class 3 is wasted money.
Paying class 3 after 2017 should increase your pension until you reach the £144 maximum but it will depend on the terms of the arrangement whether that is a good idea.I came, I saw, I melted0 -
gadgetmind wrote: »Dunno if you can do this with extra years *pre* 2017 - will need to read white paper again.
It seems that it's post implementation qualifying years that will boost you most as these will give 1/35th of the £144 extra per week (capped at £144) for every additional year as a top-up to whatever your foundation sum (based on largest of old and new) at implementation.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 -
Anyone know how much it currently costs a non worker to buy a year of NI credits?
Class 3 prices vary depending on which year you want to buy, but ISTR about £655.
Class 2 self employed NICs cost £130 a year at the moment and my wife is using them now to reach 30 years. Once she reaches this, we'll either pause until 2017 or continue - it depends on what the "rebate derived amount" will be for her contracted out years.
They reckon her current S2P is worth £0 per week, which is odd as it was £0.43 a week on the 2009 statement!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
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