The proposed new State Pension

academical

I have my 65th birthday on 12th April 2013. Pension forecast £120 per week.
For various reasons I have decided to defer my State Pension for 3 years.
In today's money this should increase my SP to just under £160 / week for the rest of my life (break even after 10 years)
If I deferred until AFTER the introduction of the new scheme, would I be treated like a new pensioner and get my extra £37 on top of the proposed £144?
Anyone any thoughts please

aerofly

Hi, after the new State Pension proposals I am a little unsure how it will affect my situation and I wonder if anyone has any answers.
I took early retirement from my job with BT last March aged 57, having spent 39 years with the company. Therefore I will not qualify for a State Pension until sometime after 2020.
However my existing company pension is partly final salary, and the government are saying those workers with final salary pensions will have to pay extra NI to cover the new State Pension increase.
My ultimate question is then, considering I have now stopped paying NI since early retirement, will this preclude me from receiving the new State Pension increase after 2017, ie. will there be a shortfall in my NI contributions in order to qualify?.
Any ideas please?

Mojisola

academical wrote: »

I have my 65th birthday on 12th April 2013. Pension forecast £120 per week.
For various reasons I have decided to defer my State Pension for 3 years.
In today's money this should increase my SP to just under £160 / week for the rest of my life (break even after 10 years)
If I deferred until AFTER the introduction of the new scheme, would I be treated like a new pensioner and get my extra £37 on top of the proposed £144?
Anyone any thoughts please

No, you stay within the rules in place at the time you turned 65.

academical

Thank you Mojisola for your reply.

Mojisola

academical wrote: »

Thank you Mojisola for your reply.

There were experts discussing it on the radio this morning and as I was wondering about deferring my pension, I listened carefully to that answer!

bazzap

Mojisola wrote: »

No, you stay within the rules in place at the time you turned 65.

Can I ask please where this fact is confirmed?
Also, having listened to Steve Webb's announcement and Q&A this afternoon, he says there will be no "cliff edge" for people reaching pension age before the 2017 date of introduction of the new scheme.
I didn't hear though and struggle to understand how this can be so, but like many would welcome it.
Does anyone have any further information on this?

Mojisola

bazzap wrote: »

Can I ask please where this fact is confirmed?

That's what the two experts on the radio said this morning - one was from the Pensions Advisory Service.

bazzap

Mojisola wrote: »

That's what the two experts on the radio said this morning - one was from the Pensions Advisory Service.

Thanks again
I will check out their website

Nick_C

bazzap wrote: »

Can I ask please where this fact is confirmed?
Also, having listened to Steve Webb's announcement and Q&A this afternoon, he says there will be no "cliff edge" for people reaching pension age before the 2017 date of introduction of the new scheme.
I didn't hear though and struggle to understand how this can be so, but like many would welcome it.
Does anyone have any further information on this?

http://www.dwp.gov.uk/docs/single-tier-pension.pdf

"Those already over State Pension age when the reforms are implemented will continue to receive their state pension (and the Savings Credit, where applicable) in line with existing rules."

Jaycee_Dove

Nick_C wrote: »

http://www.dwp.gov.uk/docs/single-tier-pension.pdf

"Those already over State Pension age when the reforms are implemented will continue to receive their state pension (and the Savings Credit, where applicable) in line with existing rules."

Exactly - which introduces pretty obvious cliff edges - up to £35 pw over just a 24 hour period in some cases as far as I can see -unless something else is being done not referenced here - so the OPs question very much stands.

Or is there a strategy to equalise the current basic pension of £107 with the £144 on the new system via - say - £10 pw basic pension rises over each of the next 4 years? Think that looks highly improbable under the economic climate as it would cost a fortune.