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The Real Truth of new 'flat rate' pension (where everybody gets different amounts)
Comments
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I don't think you or anyone else is yet in a position to make such a sweeping statement.
It's a view based on what I've seen in the published documents, and ignoring the ill-informed media. Others use the opposite approach regards their information sources and will therefore have different views.
I was doing the exact opposite of dismissing this fact.It's been called a state pension statement for some time is what you urged, dismissing the fact that it was likely to be pretty useless by the time SPa was reached.
I've never had a DB pension and I have very little spare time. Perhaps you're thinking of someone else?As someone that kicked DB schemes into touch some time ago and has been merrily self-investing in all that spare time you tell us about
As for the rest of your post, I really can't see why you even bothered typing it, and I certainly have no intention of responding to it.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Sorry gadgetmind, misunderstood what you wrote once upon a time and again today! So no experience of contracted out DB schemes? Well therein's a fair part of what's been put in jeopardy by the GMP reforms and what is being discussed. 1987 onward contracted out SERPS DC Policies is one conspicuous angle, but the upshot of reforms to 1978-1997 contracted out private sector DB is a primarily latent problem for a significant group.0
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So no experience of contracted out DB schemes?
No, all of my pension - other than employer contributions and contracted out protected rights - is 100% my money, and the whole lot is into DC.
I therefore avoid commenting on DB where possible, other than after a few drinks when I might use the phrase "magic money tree" a little too often.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
They will not be able to increase their state pension even though they may continue to work for another 20-25 years unlike the current state pension where you can continue to earn up to £2.80 per week s2p for each
Yes, the can still defer to increase their pension, all be it at a lower rate than those who can today?0 -
Yes, well, those who were in paid employment. Those who were not in paid employment, whether in prison or on means tested benefits, choosing not to work or raising children for the long term will get a substantial increase, which is paid for by what those in employment lose.wakeupalarm wrote: »It also discriminates against the younger generation, in fact virtually everyone (in 2016) under the age of 46 and most under the age of 50 will be capped at the new pension amount. They will not be able to increase their state pension even though they may continue to work for another 20-25 years unlike the current state pension where you can continue to earn up to £2.80 per week s2p for each year worked.
It's a large stealth tax rise that transfers money from the state pension funds of those in employment to replace what the general taxation funded means tested Pension Credit will no longer pay for because the revised state pension will keep more people out of Pension Credit.0 -
Sorry gadgetmind, misunderstood what you wrote once upon a time and again today! So no experience of contracted out DB schemes? Well therein's a fair part of what's been put in jeopardy by the GMP reforms and what is being discussed. 1987 onward contracted out SERPS DC Policies is one conspicuous angle, but the upshot of reforms to 1978-1997 contracted out private sector DB is a primarily latent problem for a significant group.
The only real 'losers' are younger people.
You've won life's lottery and are moaning about the difference between getting 6 numbers and 5 numbers and the bonus ball.0 -
The only real 'losers' are younger people.
Some will lose over the long term, but many more will be more secure, and at least everyone will know roughly what they'll get. Plus, years to qualify is down to 35 from over 40 (that 30 was a short-term aberration that couldn't last!)You've won life's lottery and are moaning about the difference between getting 6 numbers and 5 numbers and the bonus ball.
Hmm, lottery reference? Anyway, myself + spouse will *just* qualify for the full single tier. Where we do win is that we had a modest amount of contracted out DC, but this is of course subject to investment risk.
Where I do feel that young people are being shafted is on university fees.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Do you find the bulleted style easier to follow than the numbered items in individual paragraphs with a line between each that I used in my original post?Sorry but I don't often read your posts as they tend to be long winded and tedious, have you considered a bulleted style?0 -
Sorry but I don't often read your posts as they tend to be long winded and tedious, have you considered a bulleted style?
Hey, don't shoot the messenger.
Personally, I don't object to well-considered, complete, and informative posts, which those from jamesd and bowlhead very much are.
As for the rambling spittle-flecked rants from certain others ...I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Totally understand your "beef", agarnett, think I am very much in the same boat along with millions of others.
Do you know what it might have "cost" you? I think the Hunter story reads well since it has some specifics within it.
Here is my potted story - in private sector from 1973 to 2012 when I took VR package. Have not worked since, with little or no prospects of work. Now aged 59(shortly) with 41 qualifying years, my state pension forecast in 2014 was £110.15pw basic SP with ASP of £72.20, subject to the caveat that this could be lower if I was ever contracted out, especially between 1978 and 1997. Well I was in fact contracted out from 1993 to 2005 so there is a 4 year overlap so presumably, per the Hunter story, I can expect a significant reduction to my ASP for this period? I currently await a SP forecast with bated breath, I am due to get the SP in June 2022.
I am happy to share the info once I get it.
What do you think is the worst case scenario?
Well, got my State Pension Statement this morning.
It states that it is based on the rules of the new State Pension that starts on 6 April, 2016. It also states that the figure is based on my NI contribution record up to tax year 2013/14 which shows I have 41 qualifying years. It further states that the amount I will receive in 2022 when I retire may be higher than the amount quoted. It says on page 2 that a deduction has been made as I was contracted out of the State Pension at some time.
The amount is £190.17 a week.
I must admit I am somewhat relieved - I was fearful that the figures forecast earlier might be further decimated by more contracted out deductions, thankfully this is not the case.
Hope this helps to put other minds at rest that may also have been worrying about this.
Thanks0
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