New Flat Rate Pension 2017

Tancred

Linton wrote: »

What you get from 2017 is the larger of what you get under the new scheme and what you would have got under the old one. So although some people may do better than others you cant actually lose out.

Well, I estimate that I would have received around £60 of S2P under the old system. Now I would be getting only my basic £107 and my S2P entitlement until 2017 and that's it! :mad:

Linton

Tancred wrote: »

Well, I estimate that I would have received around £60 of S2P under the old system. Now I would be getting only my basic £107 and my S2P entitlement until 2017 and that's it! :mad:

I cant see the problem - with £60 S2P and sufficient NI for a full pension ...

1) If you reach SPA before 2017 you get £167 for your entire life
2) If you reach SPA after 2017 you get the larger of £167 and £144 = £167 for your entire life.

Tancred

Linton wrote: »

I cant see the problem - with £60 S2P and sufficient NI for a full pension ...

1) If you reach SPA before 2017 you get £167 for your entire life
2) If you reach SPA after 2017 you get the larger of £167 and £144 = £167 for your entire life.

Maybe I didn't explain myself clearly. The £60 S2P is an estimate if the old system stayed in place and I worked until my retirement age in 2034 (age 67). After 2017 you cannot earn any more S2P, so my value would be frozen as of that year.

bilbo51

Tancred wrote: »

Anyway, contracting out was an alternative only to S2P, not the 'state scheme' as a whole because the basic state pension is given to everyone with the minimum NI contribution years regardless of whether they were contracted in or out.

We were talking about ASP. I agree.

bilbo51

Tancred wrote: »

Maybe I didn't explain myself clearly. The £60 S2P is an estimate if the old system stayed in place and I worked until my retirement age in 2034 (age 67). After 2017 you cannot earn any more S2P, so my value would be frozen as of that year.

Don't worry. They will have changed the state pension again at least five times by 2034. Don't rely on it. Make your own plans.

taktikback

yes -unfortunately I'm in the same boat. The irritating thing is that I was contracted out for 16 years, and contracted back in 10 years ago in my new job. Had I taken a contracted out policy for the last 10 years, I could have the value of that, which is now effectively lost. As you can't bust back beyond £107 for the foundation amount, I could have made it back to £144 by retirement in 2029, and still kept the contacted out benefits

Hey ho...