MSE News: State pension changes to make workers worse off, unions say

itch_for_a_glitch

jamesd wrote: »

Yes, to start with. You will still be able to pay in after the new scheme comes in to get yourself closer to £144. Not before then, only after. So you'll potentially end up with whatever the contracted out bit pays you plus the £144.

Sorry to keep coming back but is there any value in me signing on ? I dont get JSA as I have savings. I was told there was no benefit to signing on.

dunstonh

itch_for_a_glitch wrote: »

Sorry to keep coming back but is there any value in me signing on ? I dont get JSA as I have savings. I was told there was no benefit to signing on.

Biggest benefit is getting your NI paid. A continuous record. Whilst the more typical non-means tested version of jobseekers doesnt pay much, getting your NI paid for free plus a few quid in your pocket is not a bad thing.

itch_for_a_glitch

dunstonh wrote: »

Biggest benefit is getting your NI paid. A continuous record. Whilst the more typical non-means tested version of jobseekers doesnt pay much, getting your NI paid for free plus a few quid in your pocket is not a bad thing.

Thanks for replying.
I cant get JSA due to savings, and I already have 35+ years of NI contributions.

jamesd

I think it's best for you in pension terms not to be signing on at present. This is because:

1. You get no means tested benefits.
2. You already have 35 years so can gain nothing in state pension at present.
3. You were contracted out for a long time, so your foundation amount under the new rules will probably be less than £144
4. Once the new scheme comes in people with less than £144 can buy more years or pay in for longer to get up to £144, even if they have 35 years under the new rules.
5. Any year you get credits for now is one year you cannot buy under the new rules, so will make you worse off by preventing you from using it to increase your entitlement with a purchase.

However, you should check this and inform the local Job Centre that the only reason you're not signing on is this combination, not that you're not looking for work. Else they are more likely to object to you starting to sign on again once the new rules come in and you can benefit from getting the credits for extra years.

Be alert for comments by others who may well be more familiar with the transitional and other planned rules. You've an interesting situation here.

itch_for_a_glitch

"If" I can get another six years I guess that gives 6/35ths of £110 extra or around £19 quid, less tax, so £15 a week, I dont think I could jobseek for six years for £15 quid a week.
Ah well.

jamesd

Once the new scheme is in place each year working, credited or purchased will add £4.11 to the pension until you reach £144 or state pension age. 1/35th of £144, not of £110. Self-employed contributions after it comes in would probably be the cheapest way to gradually get extra years if you don't want to be signing on.

itch_for_a_glitch

jamesd wrote: »

Once the new scheme is in place each year working, credited or purchased will add £4.11 to the pension until you reach £144 or state pension age. 1/35th of £144, not of £110. Self-employed contributions after it comes in would probably be the cheapest way to gradually get extra years if you don't want to be signing on.

Thanks.
Now, that means I "could" accrue £24.66 less tax (just under £20) a week, for £2.70*52*6 = £842 , payback in under a year.
Surely HMRC will be suspicious of a geriatric self employed gigolo with zero activity ?

bigadaj

itch_for_a_glitch wrote: »

Thanks.
Now, that means I "could" accrue £24.66 less tax (just under £20) a week, for £2.70*52*6 = £842 , payback in under a year.
Surely HMRC will be suspicious of a geriatric self employed gigolo with zero activity ?

Well they would certainly expect some activity from a gigolo, geriatric or not.

Reminds me of the case a few months ago where a lovely chap rang 999 to complain that he wanted a woman arrested under the trade descriptions act when she turned up at his hotel room as an escort and wasn't as attractive as he'd assumed!