The Real Truth of new 'flat rate' pension (where everybody gets different amounts)

gadgetmind

If people would just take the time to read the green papers and white papers they'd have seen that it's not "flat rate" but "single tier" and they also have observed all the complications to ensure that all the previous complexity can be fairly turned into a new foundation amount.

Myself and spouse spent some time contracted out, and expect deductions as a result of this, but we also have fatten personal pensions as a result. Seems fair to me.

gadgetmind

MoneyWorry wrote: »

Under the old rules I have £120 so yes I will have to work some years to make up the full flat rate even though I already have enough qualifying years. Am I bitter about it? Not in the slightest.

And quite right too. You're protected by the "no less than under old system" plus you get to keep all of the benefit of being contracted out for a while.

coyrls

gadgetmind wrote: »

If people would just take the time to read the green papers and white papers they'd have seen that it's not "flat rate" but "single tier" and they also have observed all the complications to ensure that all the previous complexity can be fairly turned into a new foundation amount.

Myself and spouse spent some time contracted out, and expect deductions as a result of this, but we also have fatten personal pensions as a result. Seems fair to me.

I'm not complaining about the fairness or otherwise, I would just like to know if my pension forecast is more or less correct or likely to be over stated.

coyrls

okydoky wrote: »

Well Coyrls, the lack of response perhaps confirms just how much uncertainty exists around your case, and no doubt many others.

Are you saying that you'll wait until April 2016 as once it's confirmed at that time it will be set in stone, whereas any forecast you might request before then might not be worth the paper its written on?

Pretty much. I'm assuming there will be a mechanism in April 2016 to confirm the foundation amount. I my case (apart from indexation) the foundation amount is likely to be the final figure, unless I go back to work (which I'm not planning to do).

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/424121/dwp040b-apr-2015.pdf

Have you seen the above?

agarnett

gadgetmind wrote: »

If people would just take the time to read the green papers and white papers they'd have seen that it's not "flat rate" but "single tier" and they also have observed all the complications to ensure that all the previous complexity can be fairly turned into a new foundation amount.

Myself and spouse spent some time contracted out, and expect deductions as a result of this, but we also have fatten personal pensions as a result. Seems fair to me.

Ah yes, green papers and white papers - you mean Wrigley's doublemint and Wrigley's spearmint kinda thing, ...
...but have you any contracted out private sector DB scheme deferred pension remaining or was it transferred into Juicyfruit DC long ago?

How does your actual NICO contribution record really look? Have they even worked it out yet in your case? You are not yet 55 are you, so not on their immediate to do list - maybe you have the actual truth to look forward to ?

As I implied earlier, for one of my years between 70s-80s, NICO recorded my contributions as five figures! I recently obtained a copy of the HMRC notice via my pension administrators. I haven't a clue whether it helps or hinders me!

Maybe someone can tell me which way it hangs so I can dare to call them up and ask

agarnett

xylophone wrote: »

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/424121/dwp040b-apr-2015.pdf

Have you seen the above?

Thanks xylophone. I was sent the DWP042 August 2014 version with my forecast dated 31.3.2015! That isn't specific to my age group at all of course. This new one is completely different.

Thanks again!

gadgetmind

agarnett wrote: »

Ah yes, green papers and white papers - you mean Wrigley's doublemint and Wrigley's spearmint kinda thing,

Meanwhile, grown ups are trying to have a grown up conversation.

agarnett

gadgetmind wrote: »

Meanwhile, grown ups are trying to have a grown up conversation.

Yes, well if instead of posturing you had provided links to a few useful green and white papers, thus demonstrating that they[SIZE=-2]{ - by which you mean government, I think - }[/SIZE]also have observed all the complications to ensure that all the previous complexity can be fairly turned into a new foundation amount, ... then a grown up conversation might be encouraged, dontcha think?

As a smart, you'll know that not everyone is capable of GSI - Googling with Serious Intent, so maybe with a GSH you could always give a helping hand

Contrary to your contention that "single tier" is not "flat rate"or vice versa, and that the good peoples hereabouts would know that if they were as well read as you, then it is actually quite noticeable how many instances of "single-tier flat rate pension" abound on t' internet!

coyrls

xylophone wrote: »

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/424121/dwp040b-apr-2015.pdf

Have you seen the above?

Thanks for this. I think it confirms what I already knew, so it states:

The estimate of your additional State Pension (including any Graduated Retirement Benefit) is based on your NI contribution record as it stands now. The amount of additional State Pension we will use to work out your starting amount under the new scheme on 6 April 2016 may be different from that shown in your statement.

and:

A deduction may be made to these amounts for the periods you were contracted out of the additional State Pension before 6 April 2016.

I'm still not clear if, in my case, the deduction they are talking about is likely to be substantial (as Jamesd suggests) or minimal (as Greenglide suggests).

It comes back to my original question. Does the statment make a deduction for contracted out years that will have to be revised for accuracy in April 2016, or is there no deduction at all in the statement and the deduction won't be made at all until the April 2016 calculation?