New state pension

Pobby

If this happens then the above will be awarded at a little below £150 a week. A couple of questions.

Firstly if someone is already getting there current state pension, no pension credit, how will they be affected?

Secondly, what if someone is already in hand of the basic rate but has paid in for a second state top up pension ie serps, is there an arrangement for that?

molerat

If someone is already in receipt of the state pension there will be no change, they will carry on receiving the same as now uprated by inflation.

In April 2016 those not yet in receipt of their state pension will receive a starting amount which will be the higher of the old or new calculations. From 2016 on if this amount is lower than the new max figure it can be increased viay NI contributions up to that figure.

anmarj

Can only answer your first question, there will be no change to those that are state pension age, they do not get any increase/decrease. The new changes only apply to those reaching state pension age after April 2016

greenglide

If this happens

The legislation was passed a while ago.

There is no longer an "if" about it. I don't think any party would wreck it after the election either.

kidmugsy

Pobby wrote: »

Firstly if someone is already getting there current state pension, no pension credit, how will they be affected?

Such people can always buy themselves some extra state pension on excellent terms by "deferring" (i.e. suspending) their pension for a year or two (or more, if they want to).

atush

Just before the new pension comes in, you will be assigned your foundation amount baed on your current contribs under the old system incl your s2p. If this amt is higher than the new system would give you, you get the higher of the 2.

So if you already have 30 years and some s2p, and your amount is higher than even the new flat rate, you will still get this higher figure.

If you have a lot of S2p, you will most likely get a higher figure under the old system. This will depend on if and for how long you were ever 'contracted out'.

McKneff

I know that with private pensions the new law coming in is that you can cash in all your fund.


I heard people talking this morning about cashing in even after you have bought an annuity, have I misunderstood, it seems as if its the first I have heard of it.

p00hsticks

McKneff wrote: »

I heard people talking this morning about cashing in even after you have bought an annuity, have I misunderstood, it seems as if its the first I have heard of it.

This was discussed on Moneybox yesterday - apparently there are rumours that Osborne may announce something in Wednesdays Budget about possibly allowing existing annuities to be sold for cash.

http://www.bbc.co.uk/programmes/b0557675

... but at the moment it's just specualtion

atush

Plus there is a huge review of miss selling of annuities in progress if you bought one w/o advice and your insurer didn't ask you about your health as they should do.

jem16

atush wrote: »

Just before the new pension comes in, you will be assigned your foundation amount baed on your current contribs under the old system incl your s2p. If this amt is higher than the new system would give you, you get the higher of the 2.

From previous posts, it looks like the OP is already 65 so current rules apply.

dunstonh

This was discussed on Moneybox yesterday - apparently there are rumours that Osborne may announce something in Wednesdays Budget about possibly allowing existing annuities to be sold for cash.

I am struggling with this one.
Why would someone being paid between 5%-15% a year give up that to get a lump sum (with penalties) to put in the bank to earn 1-3% a year?

Sure, there may be those looking to clear debt and the monthly repayment saving may be better than the income but that has to be a minority of cases.

Given how the Govt has incorrectly dirtied the word annuity, I would not be surprised to see some people sell theirs and end up in a worse position.