Phasing of State Pension Age

xylophone

Which one do you want?

Does she have a choice?:)

jem16

Figgerty wrote: »

I want the one that makes the most of my very full NI contributions and will give me the highest pension.

Well that's your 30 years under current rules.

I thought my pension would be based on the new rules as I don't reach state pension age until March 2019.

Fortunately for you it probably won't be.

xylophone wrote: »

Does she have a choice?:)

I expect not but you never know - DWP might be happy to pay her less if she really wants that.

mumps

Does any pension expert know if it is worth delaying taking your SRP under the new scheme. Sorry, I am being lazy but when the grandchildren go I will try to look it up.

xylophone

Does any pension expert know if it is worth delaying taking your SRP under the new scheme. Sorry, I am being lazy but when the grandchildren go I will try to look it up.

It is not as worthwhile as under the current scheme.

http://www.thisismoney.co.uk/money/pensions/article-2701335/Boost-deferring-state-pension-slashed-half-2016.html

Triumph13

Figgerty wrote: »

I want the one that makes the most of my very full NI contributions and will give me the highest pension.

I thought my pension would be based on the new rules as I don't reach state pension age until March 2019.

Your contributions are 'very full' in terms of number of years, but not full in terms of amount paid. Under the old system there were two pensions. The basic state pension, which you paid for in full and will get in full, and the additional pension (SERPS, S2P, etc) which you did NOT pay for as instead you and your employer got NI rebates which went into your work pension.
The new scheme does away with this split - hence the name single tier and so in future everyone will accrue a combined pension at the same rate.
Under the transition arrangements you are going to get the full old basic state pension (which you've paid for), but you're not going to suddenly be magically awarded any additional pension (which you haven't paid for). Anyone paying NICs from April 2016 on WILL be paying for the 'additional' slice and so that is why you'll be able to earn increased rights from then on, up to the single tier maximum.

mumps

xylophone wrote: »

It is not as worthwhile as under the current scheme.

http://www.thisismoney.co.uk/money/pensions/article-2701335/Boost-deferring-state-pension-slashed-half-2016.html

Thanks, I did go and have a look and came to the same conclusion.

Figgerty

jem16 wrote: »

I expect not but you never know - DWP might be happy to pay her less if she really wants that.

It's not very logical that 30 years contributions (old scheme/rules), will result in a higher pension than 35 years contributions (new scheme.rules). But when you look at the whole of the changes a lot of things are illogical, especially the state pension ages of females born in 1953. Even the new Pensions Minister agrees on the unfairness of that - see below article.

http://www.moneyobserver.com/news/13-05-2013/what-state-pension-changes-mean-older-women

OldBeanz

The biggest anomaly is that women live longer (life expectancy females UK 2014; 82.5; males 79.5) but draw their pension earlier. Fairness would add an extra three years to the retirement age for women.

jem16

Figgerty wrote: »

It's not very logical that 30 years contributions (old scheme/rules), will result in a higher pension than 35 years contributions (new scheme.rules).

It's not so long ago it was 39 years for women and 44 years for men.

The main point though is the SERPS/S2P as that is what is making the difference rather than your number of years.

Figgerty

Thanks. Perhaps I will contact the Baroness Pensions Minister and ask her what she plans to do about "Older women singled out for harsh treatment". But she is now inside the tent Pis***g out so will not be bothered to stir things up. I will go ahead with my retirement plans for next year and bite the bullet on having to work three years longer than my friend who was born in the same year.