MSE News: Autumn Statement 2015: State pension rates confirmed

kuepper

molerat wrote: »

No you will not change your scheme. There are "old" pensioners, "transitional pensioners" and "new" pensioners. I will be transitional as my old scheme is higher than my new scheme but I can top up post 2016. MrsM will be fully new scheme as her new scheme is higher than the old. There will be several classes of pensioners just like now with some getting more and some getting less. It never has been and never will be a "flat rate" pension.

I thought the whole idea was to simplify things, obviously I was mistaken! Probably be even more costly to administer than the current scheme

SnowMan

One thing not mentioned in the article or comments is this document.

https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2016-17/tax-and-tax-credit-rates-and-thresholds-for-2016-17

I'm not sure how much to read into the class 3 rate for 2016/2017 being shown in section 6 as remaining at £14.10pw with footnotes to say that it is increased in line with CPI, and that national insurance contributions can be paid by contributors to make the year a qualifying year for basic State Pension, new State Pension and Bereavement Benefit purposes.

Given that 1/35 of the single tier pension i.e. £4.45 (= 1/35 x 155.65) is more than 1/30 of the basic state pension i.e. £3.98 (= 1/30 x 119.30) it would be surprising if the class 3 rates did stay the same.

I guess the class 3 rate for 2016/2017 could change subsequently, for example in the budget (?)

And the class 2 rate for 2016/2017 is shown as not increasing also from the 2015/2016 rate.

hyubh

kuepper wrote: »

I thought the whole idea was to simplify things, obviously I was mistaken!

It will - you're being facetious.

Probably be even more costly to administer than the current scheme

Given the end of contracting out and (at the same time) drawing a line in the sand regarding existing contracted out (dis-)entitlements, I doubt it. (Most salary related pension schemes, closed or open, are currently undertaking large-scale GMP reconciliation exercises for this, essentially at their own cost.)

Thrugelmir

Mr_Costcutter wrote: »

Dear me, they have spoken about 'simplyfying' pensions for years, but it doesn't seem to have happened. The New State Pension has caused nothing but confusion for the average man in the street. A shambles really.

No shambles. All one has to do is request a Pension Statement. A horrendous amount of taxpayers money is wasted paying wages to public servants to redistribute money. No change is every seamless. Has to be done though for the longer term benefit.

xylophone

I don't know how any typical pensioner could be getting £280 a week state pension, I had 47 years of contributions and get less than half that

http://www.which.co.uk/money/retirement/guides/state-pension-explained/state-second-pension-and-serps/

With some Graduated Pension on top the £280 would be possible.

JezR

To get towards the maximum on contributions alone would probably need to include 20 years of SERPS (as this was the most generous scheme at the top end) at the maximum surplus salary, which was set quite a bit above average earnings.

There may not be many that fall into that category as those with higher income would have in those days tended to be in contracted out pensions and younger people may have into a personal one.

The main category I guess would be older high end industrial workers in companies where they had no pension scheme for this category of employee.

Widow(ers) inheriting a partner's entitlement as well might be more commonly on the maximum.

doubleug

If you are getting the full £155 a week new state pension--and that only -you will probably not be as well off as somebody getting the current basic state pension plus their company pension. The £155 figure is only for folk who were un-contracted out and thus without any other contributions to a pension scheme .