MSE News: Government outlines flat-rate state pension

roddydogs

Paul_Herring wrote: »

Anyone who's had less than 10 years of contributions will get nothing. (In the words of Webb, so "... that the state does not end up having to pay a pension to a backpacker who comes to the UK and does bar work for a couple of years.")

But shurely any getting nothing at all will get other benefits because their getting nowt?

onesixfive

With the new set rate at £144 from 2017, and my current pension projection around £30 higher than that, I am set to retire at around 6 months after the new scheme is introduced - am I likely to lose £30 a week now ? or is there some sort of phasing?

SnowMan

roddydogs wrote: »

But shurely any getting nothing at all will get other benefits because their getting nowt?

Depends where they are living when they retire.

If they have less than the minimum qualifying period (which is going to be in the range 7-10 years I think) and are living in France then it is likely that France will pay them their state pension under their rules assuming that is where the rest of their contributions were. Under the current scheme the UK would pay them a bit of pension for the time they were in the UK and the French the rest.

That's how I understand it.

SnowMan

sng165 wrote: »

With the new set rate at £144 from 2017, and my current pension projection around £30 higher than that, I am set to retire at around 6 months after the new scheme is introduced - am I likely to lose £30 a week now ? or is there some sort of phasing?

No you get to keep any accrued basic state pension plus state second pension and so you get the £174 (= 144 + 30), ignoring any small accrued amount in the last 6 months which may be included in your £174 figure.

If the scheme is implemented before you reach SPA (on time) then there is a guarantee you will get at least as much as accrued under the old scheme at 2017 so you retain your £174 entitlement

If the scheme isn't implemented before you reach SPA you are getting £174 also becasue the old scheme rules apply.

onesixfive

SnowMan wrote: »

No you get to keep any accrued basic state pension plus state second pension and so you get the £174 (= 144 + 30), ignoring any small accrued amount in the last 6 months which may be included in your £174 figure.

If the scheme is implemented before you reach SPA (on time) then there is a guarantee you will get at least as much as accrued under the old scheme at 2017 so you retain your £174 entitlement

If the scheme isn't implemented before you reach SPA you are getting £174 also becasue the old scheme rules apply.

I understood the second state pension was to be abolished from April 2007 ?

Paul_Herring

SnowMan wrote: »

roddydogs wrote: »

But shurely any getting nothing at all will get other benefits because their getting nowt?

Depends where they are living when they retire.

[france]

I think the question was directed at someone living in the UK who has insufficient contributions. For example (I imagine some will be thinking of) the old-age 'workshy' who've made a career of being on benefits[1] and immigrants.

[1] Since the 'workshy' will have been getting unemployment benefits for 'at least 35 years', they will be getting the £144.

twentyfour11

I am 65 on 30th May 2016. I am self employed for about 35 years. Prior to this I worked from age of 16.

I did a pension forecast recently and was given a pension forecast of about £107.50 per week.

I see the new system comes in circa 2017 where its a flat rate of about £144 per week.

Does this mean I lose out?

Zazie

I am 60 and female and because the goalposts moved I'm not retiring now with a state pension as I'd expected to all my life. I'm going to have to keep working (self-employed now) for another 2+ years as I'm £15K down on what I thought I'd have.

Now it looks like I'll be caught again. The state pension will kick in in 2015 so I'll be on the existing pension terms for the rest of my life, earning nearly £40 a week less than someone who is 2 or 3 years older than me, despite the fact that I'll have NI contributions for 40 years. Or am I missing something?
To make it worse, OH will reach state pension age in late 2017 so will be on the new system. Great? No. He has only 30 years' NI contributions so as we understand it he will not get the full amount either.

We were really counting on this income. Should he try to pay voluntary contributions out of savings? Any advice much appreciated. I feel pretty depressed at the moment.

BLB53

No you get to keep any accrued basic state pension plus state second pension and so you get the £174 (= 144 + 30), ignoring any small accrued amount in the last 6 months which may be included in your £174 figure.

I'm not sure this is correct.

My understanding is that they will compare what you would have got under the old system - £107 + £30, and the new system £144. If you would have got more under the old system you will not lose out but I do not think you get the new £144 PLUS £30.

I may be wrong?

SnowMan

BLB53 wrote: »

I'm not sure this is correct.

My understanding is that they will compare what you would have got under the old system - £107 + £30, and the new system £144. If you would have got more under the old system you will not lose out but I do not think you get the new £144 PLUS £30.

I may be wrong?

I took the poster to be saying his/her current accrued state was £174 (which might be made up of £107 basic state pension + 67 additional pension). He/she just expressed the £174 as being £30 more than the proposed £144.

I think we are agreeing if you realise that but I could have been clearer in my earlier post.