MSE News: State pension to rise by at least 2.5% next April

gadgetmind

greenglide wrote: »

The full nSP rate cannot be less than the Pension Credit single person guarantee which is currently £151.20.

Yes but "full" is the critical word. The MSE article says "It's already been announced that the new flat-rate state pension system for women born on or after 6 April 1953 or men born on or after 6 April 1951 will be no less than £151.25/week."

That really doesn't help the ongoing belief that some have that they'd get this sum even without the required number of qualifying years, and even if contracted out for long periods.

zagfles

Oblivion wrote: »

I would be, oh yes :beer:
It all down to individuals and their savings and their personal lifestyle spending needs and habits. I'd be quids in with high inflation and interest rates to match.

Open an account in Venezuela then! http://www.tradingeconomics.com/venezuela/interest-rate :rotfl:

bigfreddiel

greenglide wrote: »

And people who have RPI linked pensions (as I will next year) can smile!

Just out of interest who is your rpi linked pension with?

Cheers fj

xylophone

People with RPI linked pensions can also lose out if they are receiving their state pension and have GMP.

A relative has RPI linked scheme pension but the GMP part thereof is linked to CPI - there will be no increase to the pre 88 GMP (paid by the state) because CPI is negative and no increase to post 88 GMP through the scheme because CPI is negative.

greenglide

bigfreddiel wrote: »

Just out of interest who is your rpi linked pension with?

Cheers fj

My current employer:)

I have looked at the full details in the full scheme details, not just the booklet and it definitely says RPI. Unfortunately a chunk of it is capped at 5%.

bigfreddiel

greenglide wrote: »

My current employer:)

I have looked at the full details in the full scheme details, not just the booklet and it definitely says RPI. Unfortunately a chunk of it is capped at 5%.

And who is your employer?

Also have you checked the latest handbook, I had an rpi linked pension but it changed to cpi quite some time ago!

Cheers fj

gadgetmind

My pension is 100% linked to the stock market, so please stop moaning!

kidmugsy

The 10.4% annual boost for deferral, and 2.5% boost on the basic part of the underlying pension, do look awfully good in a world where CPI inflation is essentially zero. Or rather, they look good for those receiving them, but rather bad for those funding them.

This may be an unpopular thing to say on this forum, but wouldn't it be more defensible to increase basic (and additional) pension by the inflation in earnings?

bigfreddiel

Actually the increase will be 2.9% the growth in earnings figure.

Cheers fj

greenglide

bigfreddiel wrote: »

And who is your employer?

Also have you checked the latest handbook, I had an rpi linked pension but it changed to cpi quite some time ago!

Cheers fj

To move from RPI to CPI would require a change to the underlying trust deeds as the RPI is stated quite categorically there. Isn't it the ones that just use the term "inflation" rather the actual index to be used that can be easily changed?

Employer is the UK subsidiary of a US computer services company which has significant contracts with HMG, including DWP.