Flat Rate Pension one year earlier - April 2016

[Deleted User]

Hi all - quick query if I may?

I was on the MSE site yesterday (can't find the page this morning - might be too early for me or maybe it has gone..) and there was a page saying that if you were born before April in 1959 (or 1960?), your state pension age was 65, and if born after that it is older. I was born before the stated date, so I went on the Government website and put in my details and it told me that my number of years NI contributions was enough for the full state pension but that I wasn't eligible to receive it until 66.

I'm in my mid-50s and receive a local govt pension at the moment - since leaving college, my employment has been entirely with employers under the LGPS - can someone let me know what the position is under the new state pension arrangements? I left work at the end of December 2012, but I confess I'm a bit lost with the January 2013 announcements and the budget changes yesterday....:o

WR

bilbo51

Wild_Rover wrote: »

Hi all - quick query if I may?

I was on the MSE site yesterday (can't find the page this morning - might be too early for me or maybe it has gone..) and there was a page saying that if you were born before April in 1959 (or 1960?), your state pension age was 65, and if born after that it is older. I was born before the stated date, so I went on the Government website and put in my details and it told me that my number of years NI contributions was enough for the full state pension but that I wasn't eligible to receive it until 66.

I'm in my mid-50s and receive a local govt pension at the moment - since leaving college, my employment has been entirely with employers under the LGPS - can someone let me know what the position is under the new state pension arrangements? I left work at the end of December 2012, but I confess I'm a bit lost with the January 2013 announcements and the budget changes yesterday....:o

WR

Start here: https://www.gov.uk/calculate-state-pension

[Deleted User]

bilbo51 wrote: »

Start here: https://www.gov.uk/calculate-state-pension

Aye, that's what I used. Was the 65 to 66 qualifying age one of the January 2013 changes? It's not like MSE to be wrong, but the page I saw yesterday said 65 because of my birth date - just confused me a bit!

WR

bilbo51

Wild_Rover wrote: »

Was the 65 to 66 qualifying age one of the January 2013 changes?
WR

No. It's been like that for a while.

I think this must be the page you saw:
http://www.moneysavingexpert.com/savings/state-pensions#tableone

It's dated April last year - ie out of date.

[Deleted User]

bilbo51 wrote: »

No. It's been like that for a while.

I think this must be the page you saw:
http://www.moneysavingexpert.com/savings/state-pensions#tableone

It's dated April last year - ie out of date.

Yes - that was it. At least I know I'm not going mad. Well not on account of that, anyway........

WR

Thrupneybit

Originally Posted by zagfles
Maybe, but this isn't retrospective, a self employed person who gets to state pension age just after the change date would suddenly get a rise from £107 to £144.

What about the other side, I'll be reaching pension age 2weeks before, Will I receive the £144 when it comes in or stick on £107,,,,,,,,, thanks

jamesd wrote: »

You'll get whatever you're due based on your contributions under the system that applies when you reach state pension age. So £107 if you have no additional state pension entitlement.

Thanks but If thats the case then it's not looking good:

I'll have been self employed for over 35yrs paying the basic N.I. stamp which gives no other state pension entitlements. So am I to presume that my state pension will never rise,,,,

jamesd

If your income and savings are low enough you'll also be entitled to Pension Credit and maybe other benefits that would increase your income to about £140 a week. Or you could carry on working.

If still working you can defer taking the state pension and your entitlement will increases by 10.4% for each year of deferral under the current rules. It takes about three and a half years of deferring to get to £144 a year. This is probably the best way to improve your long term position if you have savings above the limits for the means tested benefits.

Jaycee_Dove

Self employed low earners with modest savings will massively benefit (for those who were asking above).

My example reveals how. I reach SP age before the new system. I have been self employed with 41 year stamps and tried to save a little towards a second pension knowing I would not get one under the current system. I saved around £20,000 in ISAs before I was forced to become a full time carer. This stopped me earning enough to increase these savings.

As a result I am getting around £116 pw SP (forecasted) and my ISA prevents me from getting any pension credit. But, of course, is paying only about £10 pw to top up that pension as it is such a modest sum. So making it nothing like the £144 pw flat rate in total.

I currently receive £58 pw carer's allowance but lose this at SP age as the £116 pw is a higher amount.

I have asked if I can defer my SP by 2 - 3 years to bump it up to the £144 pw as suggested above. This I can do but only by taking nothing at all.

You might assume (I did) that you can continue receiving the £58 pw carer's allowance whilst deferring your pension and it would be topped up on the basis of the extra £58 pw x 10.4% per year. But in fact to defer you have to not take carer's allowance at all and defer all £116 - thus, prsumably, living on the £10 pw income from my ISA in the years of deferrment.

However, had I been lucky enough to reach SP age after the new system and even if I had stamps paid for years less than I do and even if I had a vast sum saved then I would get the £144 pw straight away.

So, yes, there are very definite winners here. I will be living on £10 pw for three years to pay for near future self employed rich people to get the extra £28 pw.

Not bitter. It is how having a cliff edge system works. But I wanted to show that there ARE huge winners and losers.

wakeupalarm

Yes, the self-employed are amongst the biggest winners of the new system, far more than Women or the low-paid that is portrayed in the media. A substantial amount of Women and low paid will actually lose out under the new system mainly from the younger generations which is never mentioned in the media.

kuepper

I don't see how treating pensioners differently isn't discrimination under the HRA, surely someone or some organisation such as ageuk will bring a case to court. There will have to be a date when the new pension it is introduced and the day before it is some ppl will get the existing pension of the day and those retiring the next day will probably be about £40 a week better off. To rub it in you're gooing to have ppl who've made contributions all their life getting the low rate and ppl who haven't paid their wack and who retire the following day getting the new rate. It's a scandal.

to paraphrase Orwell: All pensioners are equal but some are more equal than others