New State Pension Guide

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Thanks folks,
This is the discussion thread for the
New State Pension guide.
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Thanks folks,
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Please stop perpetuating this myth that those who have been contracted-out are losers, in general they are winners
The Parliamentary report on the mis-communication of the changes says In this case the mis-communication is by MSE (not the first mis-communication by MSE on this).
The article fails to cover how the transitional period works. It needs to explain that everyone has a starting amount at April 2016.
If this is more than the £155.65pw full single tier pension, then no further accrual is possible after April 2016 (although amounts are still uprated with the triple lock and CPI on the protected amount)
And if the starting amount is below £155.65pw, then 1/35th of the single tier amount (about £4.45pw) can be added for each post April 2016 qualifying year until the full single tier pension is reached. An example to show how many post April 2016 years were needed to reach £155.65pw would be a good idea.
A couple of diagrams showing these 2 scenarios would be good.
There is also a typo of £155.95pw as the full single tier amount at one point.
Also, male SP age is already at least 67 (well, mine is) so why do you insist on olny mentioning the increase to 66 by 2020?
I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple
Well it looks to me as though those contracted out will lose out because with annuity rates so low the private pension will not make up the shortfall in the basic state pension.
Also there are uses such as "Female SPa" which is used for qualifying for bus passes, Winter Fuel Payment etc which is the date on which a female born on the same day would reach SPa.
It was all simpler in the 1990s!
Since such members didnt contribute to the second pension why should they benefit from the transitional measures to close down the SERPS / S2P schemes?
The real change is the removal of virtually all inherited and derived rights under the new state pension except for married women who have been paying reduced (E) rate contributions (for example the ability to use some or all of a spouse or civil partner's contribution record on death, retirement or divorce to gain some entitlement or extra entitlement than that based on your own record only)
The writer of the MSE article does not understand that this affects both basic state pension and additional pension effectively. The only real relevance of additional pension is that some of the limited protections that apply during the transition are mainly in relation to additional pension.
Exactly, it was giving up the right to additional pension BUT not the Basic pension. Now they are using contracting out as an excuse to reduce the basic 'flat' pension from £155 to something much less.
So there is no reduction of the basic pension only the additional pension, and in some cases there is no reduction in the additional pension either because of this ability to 'buy' this back through post April 2016 qualifying years.
Consider Frosty who has 30 years all contracted-out to April 2016 (and so has earned no additional state pension) and his twin Olaf who has 30 contracted-in years during which he has earned about £36pw of additional state pension say. Assume both have 9 years before they reach SPA (all of which are qualifying years).
Both will have an eventual state pension of £155.65pw. However Frosty will have his private contracted-out benefits as well, and may have paid lower national insurance up to April 2016. Olaf will have no separate private contracted-out benefits and may have paid higher national insurance.
Frosty, the contracted-out snowman is the winner.
It's not all about you; my (male) SP age is 66 because I will be 66 in 2022.