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Question on new pension rates in 2017
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Jack_Griffin wrote: »Hi wideshoes,
The previous poster is wrong.
First step is check what he is entitled to, go here https://www.gov.uk/state-pension-statement and follow the steps to get a pension statement, this will tell you what he should get as it stands.
It is likely to be more than £144 already given his work record, what he gets depends on the SERPS entitlement he has built up, in which case he gets the higher amount anyway.
The second thing is what happens if you defer taking the pension, that information is here. https://www.gov.uk/deferring-state-pension/what-you-may-get
I'm not sure about SERPS entitlement, I assume this continues to build up if you stay at work and pay NI, though after 2017 no one will be able to build up any more SERPS. Can anyone else confirm that?
PS Above post contains a few incorrect/inaccurate statements which other posters correct below, you live & learn..but advice to get a pension statement is good & the main point of my post.
I don't think I am wrong actually and others agree with me.Lost my soulmate so life is empty.
I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
Diana Gabaldon, Outlander0 -
Just to confirm some of the above data for the OP via my own example.
I have been self employed and have 40 years NIC payments. My date for reaching Pension Age is later this year.
Having no second pension I have obtained a figure for what I will be due. It is £122 pw.
If I retired after the new system I would get £144 pw as the new system treats self employed the same as employed.
You only need 30 NIC years under the current system to get the full pension so many of my years actually feel 'wasted' . Under the new system you will need 35 years I believe.
I asked if I could defer my pension and qualify for the new rules for self employed. Was told no. You will be governed by the system on the date you were due to retire regardless of when you claim your pension.
So I asked how long I needed to defer in order to take my pension to the level of the new system pension and was told just over 2 years would probably be enough (depends on some factors not yet decided such as future annual pension rises or the exact sum of the new system flat rate). This would bump me up to around £145 - £150 pw.
Hope this helps.0 -
Jaycee_Dove wrote: »So I asked how long I needed to defer in order to take my pension to the level of the new system pension and was told just over 2 years would probably be enough (depends on some factors not yet decided such as future annual pension rises or the exact sum of the new system flat rate). This would bump me up to around £145 - £150 pw.
Can that be right? I assume that the present deal on deferment will continue until the new system comes in. So a two-year deferment would get you a 20.8% increase => £147 per week. I don't see the room for "probably" unless there is a risk of the reward being cut before the new system comes in. (Mind you, the present deal does look too good to be true.)Free the dunston one next time too.0 -
Can that be right? I assume that the present deal on deferment will continue until the new system comes in. So a two-year deferment would get you a 20.8% increase => £147 per week. I don't see the room for "probably" unless there is a risk of the reward being cut before the new system comes in. (Mind you, the present deal does look too good to be true.)
I worked out that if jaycee deferred for two years, it would take around 8.7 years to recoup the deferred amount, even if she eventually received £150 per week. That seems far too long to me, at that stage of life. Or am I missing something? Do others think that's a good deal?0 -
About half of 65 year old men and women in normal good health can expect to live to age 88 or so or older, a bit older for women than men. So 8.7 years for a 65 year old is fine.0
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About half of 65 year old men and women in normal good health can expect to live to age 88 or so or older, a bit older for women than men. So 8.7 years for a 65 year old is fine.
Hmmm. Well, if you make that decision, you have to believe that you are in the half that expect to live long. I'm not too sure about that. Perhaps that says something about my poor optimism level and therefore my chances of living a long life!0 -
Depends to some extent on how much or little money you want if the likely result happens and you do live closer to the normal expected lifetime. The death rates don't start to rise substantially until within just a few years of that, so you're quite likely to at least get close unless you have medical conditions that shorten your life expectancy.0
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