Means tested public pension

scubascuba3

Anyone know whether this above is happening or will happen? You could pay NI for all the required time but still not receive a state pension.

Fine maybe if you are well over the threshold but if you are just over this just doesn't seem fair.

Annie1960

scubascuba3 wrote: »

Anyone know whether this above is happening or will happen? You could pay NI for all the required time but still not receive a state pension.

Fine maybe if you are well over the threshold but if you are just over this just doesn't seem fair.

The state pension in the future (after 2016) will be based on NI contributions. You will need 35 years of NI contributions for a full pension, which is £144 at today's prices. There are some transition arrangements which I don't yet fully understand for people who have been contracted out of seeps/s2p, but the main idea is that it will be based on contributions.

scubascuba3

So it won't be means tested? So if you've paid in the full NI then you will receive the pension.

I don't understand why today I've heard twice the phrase means tested state pension be mentioned.

greenglide

scubascuba3 wrote: »

I don't understand why today I've heard twice the phrase means tested state pension be mentioned.

The mentions of "means tested" and "state pension" vaguely close to each other will have been about Pensions Credit which is a means tested benefit.

The role of Pensions Credit will be dramatically reduced (but not entirely removed) by the STP changes brought in in 2016. This has not been changed by the budget but, allegedly, the changes to DC pensions have been (or will be) made taking into account the higher basic state pension and less means testing.

Lots of smoke and mirrors;)

danielanthony

So basically if you pay NI you get the full state pension.

And if you don't pay NI you can claim pension credit and get the full state pension amount.

xylophone

Anyone know whether this above is happening or will happen?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

kidmugsy

scubascuba3 wrote: »

I don't understand why today I've heard twice the phrase means tested state pension be mentioned.

Perhaps someone speculating that in thirty years time it might be adopted? Or a week next Friday after the General Election if that nice Mr Balls becomes Chancellor?

Truthseeker_2

kidmugsy wrote: »

Perhaps someone speculating that in thirty years time it might be adopted? Or a week next Friday after the General Election if that nice Mr Balls becomes Chancellor?

I'm all in favour of a means tested state pension - as long as the tapers are not set at ridiculously low levels. But it's clear that we cannot go on with some people enjoying vast private pensions in addition to the state pension. The country's finances can't afford this.

scubascuba3

Truthseeker wrote: »

I'm all in favour of a means tested state pension - as long as the tapers are not set at ridiculously low levels. But it's clear that we cannot go on with some people enjoying vast private pensions in addition to the state pension. The country's finances can't afford this.

I agree a means tested pension would be fine at a high threshold, for example Peter Stringfellow shouldn't get one :-) he is always quoted in these kind of examples :-)

Annie1960

danielanthony wrote: »

So basically if you pay NI you get the full state pension.

And if you don't pay NI you can claim pension credit and get the full state pension amount.

No, you will only get a full state pension if you have made 35 years' contributions.

kidmugsy

Truthseeker wrote: »

... it's clear that we cannot go on with some people enjoying vast private pensions in addition to the state pension. The country's finances can't afford this.

In what ways are the country's finances affected by someone having a vast private pension? They are affected of course by someone having a vast DB pension payed for by the taxpayer.