State Pension - Utterly Confused

Uplander1111

Presumably my pension knowledge and IT skills are comparable, as I hadn't subscribed so didn't know there were more posts hence my not thanking subsequent contributors. Anyway, in answer to xylophone, I am fortunate to be a member of a final salary scheme so I assume that GMP is not an issue.

Bigfreddiel: I am not feeling hard done by and certainly don't need to calm down. I am simply trying to use MSE for help and guidance from those folk who understand these things and are willing to share that knowledge in a constructive way.

As a mere mortal who skims over things I heard about the new pension, checked dates and thought it meant I would get the new amount. Subsequently the Government (politicians, don't you love 'em) said that they “simplified” the original announcement i.e. omitted to say that not everyone who appeared to be eligible would actually benefit from the full amount. I believe it was an FOI request that forced them to make another announcement.

It is of course the case that for many of us these things are confusing and I am still unsure as to how I would know whether voluntary contributions would take me above the amount projected under the old system.

Anyway, thanks for the helpful posts.

JezR

It was clearly reported way back at the Green Paper Stage in 2011 that during the transition phase for some the single tier pension would be in part delivered through existing contracted out pensions. See this forum post at the time.

This Steve Norris quote appeared widely across the press - the same papers by and large including the Daily Mail who have found this to be such a 'surprise' 3 or 4 years later. They don't search their own back copy.

Actually the position is slightly better than 2011 in that then it wasn't clearly the case that post introduction of the new pension that further NI contributions could top up a foundation level to the full single tier value without considering past contracting out.

Uplander1111

Mea Culpa:


I do not read green papers
I consult MSE when I need help
I listen to the headlines of the news


The point is, when the BBC was trumpeting the "universal state pension" in 2014 and quoting a figure, no politician leapt into the debate and said "hang on folks what we said was this..."


Anyway, moot point - I simply came here to seek help with my three queries!

bigfreddiel

Uplander1111 wrote: »

Mea Culpa:


I do not read green papers
I consult MSE when I need help
I listen to the headlines of the news


The point is, when the BBC was trumpeting the "universal state pension" in 2014 and quoting a figure, no politician leapt into the debate and said "hang on folks what we said was this..."


Anyway, moot point - I simply came here to seek help with my three queries!

How can you tell when a politician is lying?

When his lips move!

Note: politicians are available in other genders

Cheers fj

johnaka

how the hell they come to that conclusion of £92.
paid in 45 years only 20 contracted out.
something not right.
on the old system he would have got more £120.
this would have taken into account of 20 years contracted out.
so how come he'll get less??
it seems to me that under the new system we're worst off.

p00hsticks

johnaka wrote: »

so how come he'll get less??
it seems to me that under the new system we're worst off.

he won't get less - the foundation amount will be the higher of the two figures, from the old and new schemes .

No one will be worse off - they just may not be better off

gadgetmind

Uplander1111 wrote: »

I do not read green papers

Fair enough, it's all a bit up in the air at that stage, but it's worth reading the white paper publications that come out of the process.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181229/single-tier-pension.pdf

JezR

My point about the green paper was not that everyone should have read it, but that newspaper coverage at that time was quite clear and open about the proposed treatment of contracted out NI, if not in the headline in the articles. Three or four years later this element of the transition is reported by these same papers as a great headline revelation, as if it had been concealed in some way which it never has been. The emphasis of repotting in the interim has been more about the long term.

dullnote

I am confused dot thingy. I understand about the contracted out ect ( which was never explained to me when I purchased my pension, can I claim miss-selling?)

However the question is, if you are contracted out you are guaranteed to get at least the amount you would have got from the old system. How long is this guarantee for is there a timescale on it>

When are we due news on how this will be calculated, although I have contracted out I have paid in for a lot more years than minimum this should be taken into account??

xylophone

I am confused dot thingy.

Try https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf