STATE Pension ALERT !

gadgetmind

Snakey wrote: »

When I started making plans for my retirement you could take pension benefits at 50. Now, for me it will be 58.

Aren't they still consulting on that?

p00hsticks

Yes - I also have a works pension

Snakey wrote: »

Private pensions don't cost the State one penny extra regardless of when benefits are taken, they aren't being paid by the taxpayer.

Whilst that might at first sight be logical, I suspect that there may be a knock-on impact to the state expenditure as the result of people retiring early on a private pension. For example if people retire at 55 rather than 65, then if they go for an annuity then they will have a lower weekly income - which may mean that they will be entitled to means tested benefits such as housing benefit, council tax benefit and pension credit.

I also vaguely heard something on BBC Breakfast this morning about some sorrt of initiative to encourage people not to retire early, in which (I think) it was said that having people retiring at an early age impacts negatively on the overall economic growth of the country (presumably at least in part because there will be no NI & less/no income tax being paid by someone who is 'economically inactive')

Snakey

But I was really looking forward to being able to impact negatively on the overall economic growth of the country, dammit! It's pretty much what I've been working for all these years.

I still think it'd be better done by saying "if you retire early and find you haven't got enough to live on, don't come running to us for benefits", than by saying "nobody is allowed to retire early just in case some people might do this". It's a tricky one though because if some idiot does exactly that, a civilised society cannot just let them starve in the gutter even if it might be considered well and truly their own fault if they did. It could be framed in a positive way though by ruling that you cannot take your pension unless it guarantees you a level of income that's above the benefits threshold.

Yes, proposed changes only at this stage, but I don't think the consultation is along the lines of "shall we do this, or leave things as they are?", and I would be surprised if it doesn't come in. Surprised and delighted, don't get me wrong - even kicking the can down the road a few years might bring me in on the right side of any transitional period - but surprise would be the main one.

gadgetmind

Snakey wrote: »

"if you retire early and find you haven't got enough to live on, don't come running to us for benefits"

But lots of people "retire" by not working when they have zero income other than benefits.

pandakins99

This is all terribly confusing, but I feel a bit of a chump now.


I was in a contracted-in final salary scheme for about 20 years in the private sector from age 23 until 43. The company I worked for had a link with Standard Life and you could go in to a minimum personal pension to take the rebates etc. It was called the 'Castle' pension or something. At the time I was cynical about these sorts of things and never joined, thinking myself better off in SERPS as it was then.


It looks as though I will probably get the new higher flat rate pension anyway, but could have had the rebate-only one in addition!


A mistake on my part, but who was to know.

BobQ

Yes - I also have a works pension

Snakey wrote: »

Private pensions don't cost the State one penny extra regardless of when benefits are taken, they aren't being paid by the taxpayer. .

So what is tax relief on pension contributions? Who pays them?

bigfreddiel

Yes - I also have a works pension

WE_ARE_ALL_IN? wrote: »

From 2016 there is a new state pension for those born after 1953.
Read the information on the GOV.UK web site. /"new-state-pension/print" and pay particular attention to Section 4.
Is this a long term intent to remove or means test for the new state pension when you get to the grand old age of 67.

No wonder there was a push to put all employees into work place pension scheme over the last few years.

Work hard , save hard, plan for your future retirment and then find out you have paid into a system that has no intent of paying anything back. :mad:

Well done to the media for ensuring this is not front page news :T
YOU ARE IN IN IT TOGETHER.
Yet another move of the goalposts

What a load of rubbish

I was born in 1951 and will be getting the new flat rate pension. Don't know where 1953 figures in this?

fj

gadgetmind

pandakins99 wrote: »

A mistake on my part, but who was to know.

True enough, but I opted out because diversity is never a bad thing. It now looks like our opting out won't lose us any SP but will gain us at least £50pw from our (formerly) PR pots.

Yes, we have probably got luck, but such is the nature of diversity. All your eggs in one basket is never good.

xylophone

I was born in 1951 and will be getting the new flat rate pension. Don't know where 1953 figures in this?

https://www.gov.uk/new-state-pension/overview
You’ll be able to get the new State Pension if you’re eligible and:

a man born on or after 6 April 1951
a woman born on or after 6 April 1953

FatherAbraham

Yes - I also have a works pension

BobQ wrote: »

So what is tax relief on pension contributions? Who pays them?

No-one "pays" them. The money in a pension fund simply hasn't been taxed yet.

"Tax relief" is a misnomer It's deferral of taxation.

The earner is saying "I defer this income until the future", so it doesn't get taxed as personal income now. Instead, it gets taxed in the future, when drawn down or annuitised.

Warmest regards,
FA