Flat Rate Pension one year earlier - April 2016

bigfreddiel

jamesd wrote: »

It's taking money from those losing that year of S2P accrual to give it to the ones who benefit from the earlier start.

actually if your pension+s2p is more than the flat rate pension then you will get the former - nothing lost then.

see ya!

fj

JohnB47

bigfreddiel wrote: »

its just a combination of ironic, facetious, condescending humour or didn't you get it?

of course it's all a great big con trick - the gov doesn't give you something for nothing - at the end of the day we're all losers

cheers

fj

Well, I didn't get it. I thought you were being sincere. Perhaps you're quite good at the con trick yourself.:)

jem16

bigfreddiel wrote: »

its just a combination of ironic, facetious, condescending humour or didn't you get it?

As you do have some strange ideas at times, no it wasn't obvious.

jamesd

bigfreddiel wrote: »

actually if your pension+s2p is more than the flat rate pension then you will get the former

You will lose one year of S2P accrual that would take you further over the flat rate, losing you the extra payment due from that extra year for the rest of your life.

marathonic

Not sure how this impacts me. I am a 30 year old who had been contracted out of my defined contribution pension scheme for 6 years until I was automatically contracted back in last year.

On the face of it, it looks like it'll give me an extra year of accrual under the new system - considering my current state pension entitlement is probably minimal.

bigfreddiel

jamesd wrote: »

You will lose one year of S2P accrual that would take you further over the flat rate, losing you the extra payment due from that extra year for the rest of your life.

even if that's true - its not going to even buy you a daily pie and pint so don't sweat the small stuff

ffj

grey_gym_sock

marathonic wrote: »

Not sure how this impacts me. I am a 30 year old

in that case, you should expect about 2 more big shake-ups of the pension system after this 1 before you retire. so who knows?

jamesd

bigfreddiel wrote: »

even if that's true - its not going to even buy you a daily pie and pint so don't sweat the small stuff

For a person on £14700 a year it's £1.70 a week lost, rising to £2.80 a week at the top end. That's a loss of £145.60 a year for life. Not a huge amount but it does matter, particularly to someone on a low income in retirement.

stinktankcynic

I cannot see anyone gaining, apart from someone who has not worked much and will now get the £144 instead of £110. Someone who would not get pension credit gains I guess. Good for someone who works 30-35 years and has enough.
The aim is to reduce pension payouts in future for the majority of workers, give low paid workers the same, and perhaps a good excuse to reduce pensions further for people who contracted out. I know contracting out reduces your state pension, but by even contracting out for years you can still get more than £144 now. I smell a rat.

zagfles

jamesd wrote: »

The change to one year earlier is yet another unfair treatment of those working and saving for retirement who are fairly close to retirement age, because they will lose yet another year of additional state pension accrual and have that taken from them to pay for those who haven't done so much to prepare for retirement.

Working mothers aren't penalised for taking a break to raise children. They are as free as anyone else to make contributions to pensions and even get automatic basic state pension credits while paying nothing into the system.

They also get S2P credits at the "low earners" rate ie the same as anyone earning £14700 or less (if they're getting ch ben for a child under 12 - applies to both basic and S2P pensions). Think it's £1.70 pw now, was 40% of the band earnings.