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Flat Rate Pension one year earlier - April 2016
Comments
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Ask away, that's what the forum is for. I've asked hundreds of stupid questions but thanks to the help of folk here I've learnt so much I'm now very comfortable with my economy, pensions and investments :beer:sorry to keep asking Qs revealing my ignorance but how do you find out about 'contracted out', how come the govt wouldn't know?
Well HMRC knows everything that everyone tells them but sadly not everything they are told is correct. So I guess they do an analysis/search when it comes to agreeing at time of application what your pension should be.
I'm assuming the health warning is just to protect them if further info should come to light.
But for sure I wish I had kept better records but I was having so much fun
I believe past performance is a good guide to future performance :beer:0 -
It's not pathetic, it's very common, it's part of why the smoke and mirrors approach might work politically.Sorry to sound so ignorant (but I obviously am and it's pathetic I don't know as I am 65 in September). How do I know if my pension will be increased by SERPS/S2P?
Just ask for a state pension statement and that will tell you what benefits you're already accrued. It'll include the amount for both th basic and additional sate pensions, and another type that might also be on yours, from before SERPS was introduced.
I see you've already asked. the contracted out deduction rules haven't been fully decided yet, so we just don't know what they will be.
Please do keep asking. There's a lot that can be learned and we all started somewhere.
daidogs, yes, I'm right. There is a lower inflation increase for the amount above £144, CPI instead of the higher of wages, RPI or CPI. But that triple lock guarantee also expires in a few years, it's not permanent. This is already taking lots of money from future employees - about £80,000 of pension savings for a minimum wage worker needed to replace what's being taken from them - but you'll be covered by the transitional protection and won't be affected by that because you won't have a full working life under the new rules.
If you want to understand the new system it's fairly easy:
1. Give lots of money to those women and others who have limited work histories (which will include me, potentially) and self-employed and middle aged government employees.
2. Hope younger employees won't notice that they are losing £80,000 plus of their pension savings just to get back what's being taken from them.
3. Hope that this gets the government elected again based on the short term gain paid for by later generations.
It's pretty classic giveaway to be paid for by future generations politics, coming in just after the next election.0 -
sorry to keep asking Qs revealing my ignorance but how do you find out about 'contracted out', how come the govt wouldn't know?
When you say that you are 65 in September you mean Sept 2013?
This means that your state pension entitlement falls under current rules.
Are you / were you ever a member of a contracted out pension scheme?0 -
State pension money comes from tax payers, who may or may not be pensioners.
Well, quite. My projections suggest that I'll be paying more tax in retirement that I'll get in state pension!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »Well, quite. My projections suggest that I'll be paying more tax in retirement that I'll get in state pension!
Then in other word, you do not need state pension, you could quite likely can work out how long you need to defer state pension until it is higher than tax payments.
Cheers,
Joe0 -
JoeCrystal wrote: » Then in other word, you do not need state pension
Without SP coming along after a decade or so, I'd have to reduce my drawdown percentage for it to be sustainable. So yes, I do need it.you could quite likely can work out how long you need to defer state pension until it is higher than tax payments.
I was planning to do this, but claiming the backlog as a lump sum is being stopped and unclaimed SP won't be accruing as quickly either.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
When you say that you are 65 in September you mean Sept 2013?
This means that your state pension entitlement falls under current rules.
Are you / were you ever a member of a contracted out pension scheme?
Yes in 6 months time I'm due my pension. In the debate about the £144 I've realised I don't even know what the current rules are let alone the proposed ones.
Re your Q, I'm ashamed to say I have no idea. Only ever been in one pension scheme as far as I know, I was in a local government pension scheme for about 23 years, but don't know if it was 'contracted out' or not.0 -
In the debate about the £144 I've realised I don't even know what the current rules are let alone the proposed ones.
I hope you've at least asked for a pension statement so that you know what you're getting!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
In simple terms does this mean that in future years I will receive a flat rate of 144 irrespective of personal pension etc,and will wife receive same,we have both worked all our lives and retire in a few years time0
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In simple terms does this mean that in future years I will receive a flat rate of 144 irrespective of personal pension etc,and will wife receive same,we have both worked all our lives and retire in a few years time
What do you mean by "a few years time"? Before 2016 or after?
What do your current state pension forecasts say regards qualifying years and SERPs/S2P?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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