State pension,old and new

Froglet

Please could I ask you knowledgable people a question about our pensions.


Hubby and I both qualify for our state pensions next year.Hubby in January,on the old system and me later in the year,on the new.


Phoned today to get a forecast and the chap explained that I would get two statements, one for the old and one for the new rate.I would get the higher of the 2 amounts.I had read that recently and am relieved about that.


However my husband will only get the old rate obviously.Some years ago we got a forecast,and I seem to recall he will get a small additional amount of pension on top of the basic,as he was opted out for quite a lot of years.


He has worked over 45 years,and is now retired,and taking his private pension .


My question is,and I know you can't be exact without a lot more info,but would the above facts about his,mean that he will be no worse off for missing out on the new rate by a few weeks? Will the fact he was opted out for a long while,have stopped him from getting the full amount of the new rate anyway?


Is there any way we can find out for sure I or is it a case of,we can't change the fact he was born 3 months too early,so just accept it ?


Thanks for any opinions on this you can give.

molerat

He will get exactly what he was expecting to get whichever side of April 2016 he is due to retire especially if he had a long period of contracting out. The new pension will make little difference to the majority for quite a few years yet.

kidmugsy

If he were to defer taking his pension for a year he'd get 10.4% extra pension thereafter, most of it heritable by you. If you did it, on the other hand, you would get only 5.8%, not heritable.

jamesd

He won't lose out for two reasons:

1. He'll still get whatever pension his contracted out money was paying for from whichever pension got that money.
2. If he was to defer claiming the state pension he'd get 10.4% inflation-linked per year of deferring, almost all of it inheritable by yo after his death in this case.

A kidmugsy notes, you, retiring after the flat rate, would only get 5.8% and that isn't inheritable, though it is index-linked.

The deferring deal for him is so good that it's even worth borrowing money to do it. Probably the same for you, just not as generous. If his health is good he might want to defer for five years if you can afford it and ant the additional secure income.

Froglet

Thanks for your replies.Yes we know about deferring and may well do that.So you think that him being 65 3 months before the new flat rate pension will not make any difference,and that he would get exactly the same on the old system,than if he were to get the new rate? That is really what I was wondering,as the pension statement will not give us that info.

Froglet

molerat wrote: »

He will get exactly what he was expecting to get whichever side of April 2016 he is due to retire especially if he had a long period of contracting out. The new pension will make little difference to the majority for quite a few years yet.

Thanks,that is what I was hoping!The reality of the new rate is beginning to sink in with a lot of people who thought they were going to be quids in by being 65 after April next year.It really is a minefield,but at least with a pension statement it gives you a chance to improve the amount if possible.

Dunnit

Why worry about something you cannot change?

Froglet

jamesd wrote: »

He won't lose out for two reasons:

1. He'll still get whatever pension his contracted out money was paying for from whichever pension got that money.
2. If he was to defer claiming the state pension he'd get 10.4% inflation-linked per year of deferring, almost all of it inheritable by yo after his death in this case.

A kidmugsy notes, you, retiring after the flat rate, would only get 5.8% and that isn't inheritable, though it is index-linked.

The deferring deal for him is so good that it's even worth borrowing money to do it. Probably the same for you, just not as generous. If his health is good he might want to defer for five years if you can afford it and ant the additional secure income.

I have just checked again and I am not due to get my pension until July 2017 so a while longer yet. They will keep moving the blessed goalposts !!

molerat

Froglet wrote: »

Thanks for your replies.Yes we know about deferring and may well do that.So you think that him being 65 3 months before the new flat rate pension will not make any difference,and that he would get exactly the same on the old system,than if he were to get the new rate? That is really what I was wondering,as the pension statement will not give us that info.

A statement ordered by post / over the phone gives both old and new figures and shows which you will actually receive.

roddydogs

How they can say that someone on the "Old" system will not be any worse off baffles me. I had to do 39 years for £108, now its less for £144, how is that "No worse off"?

Froglet

molerat wrote: »

A statement ordered by post / over the phone gives both old and new figures and shows which you will actually receive.

Oh ok,they didn't give me that impression,only with mine as I will receive the new rate.


It would be good to know both.


Dunnit I am not worried about losing out but it would be good to know we haven't, that's all.