Will new S Pension cause resentment?

hyubh

fredandwilma wrote: »

Looking around the forum, it seems there are a fair few "winners" from the system, but no "losers?"

As has been said repeatedly, the main losers are younger people who would have spent a working lifetime contracted in anyway...

coyrls

hyubh wrote: »

As has been said repeatedly, the main losers are younger people who would have spent a working lifetime contracted in anyway...

and anybody contracted in under the old system who has already reached the new single tier rate and will continue working.

xylophone

It's established i will receive full basic state pension under whatever rules, what is unclear, is how much i will receive as a "protected payment" and this is something only Her Majesty's Secret Service has the answer to, and at the moment they are saying it's a big fat nothing.

Looking around the forum, it seems there are a fair few "winners" from the system, but no "losers?" I wonder why? Maybe they are just not aware of it, yet? But maybe there is a smaller cache of "losers?"

If it is "a big fat nothing", then either your old rules calculation (£119.30 +Grad + SERPS + S2P) was less than the full NSP (so you get full NSP) or it was equal to full NSP, in which case you are getting the amount to which you were entitled?

You say that you are no longer working and so are no longer paying NI?

http://www.moneywise.co.uk/pensions/managing-your-pension/winners-and-losers-under-the-new-state-pension may be worth a look.

fredandwilma

xylophone wrote: »

If it is "a big fat nothing", then either your old rules calculation (£119.30 +Grad + SERPS + S2P) was less than the full NSP (so you get full NSP) or it was equal to full NSP, in which case you are getting the amount to which you were entitled?

You say that you are no longer working and so are no longer paying NI?

http://www.moneywise.co.uk/pensions/managing-your-pension/winners-and-losers-under-the-new-state-pension may be worth a look.

Thanks, that's a much clearer article to understand.





I understand now - I've already reached the maximum limit /pension is capped at £155.65 (at current rates,) and i won't receive the additional pension i was hoping for (i.e. up to £276 per week?)

As i said, i will have have accrued 50 years of N I contributions at retirement age, (if i ever get there.)

This is where some people could lose out, says Mr Noon. “Under the previous regime, although basic state pension accrual was limited to 30 years, additional state pension could be accrued over an entire working life (potentially up to 50 years). Under the new system, it is capped at 35 years with no additional state pension, so there is less scope to build up a more generous entitlement.”

While some workers' pensions will be capped, Ms Tait says “the new system will make things fairer for everybody”.

But while the new system might be fairer – capping benefits for higher earners and increasing benefits to those who have previously been excluded from the additional pension – and increases to the state pension age are regarded as necessary, there will always be some unintended casualties

There's always pension credit, unless that is reformed, too?

hyubh

fredandwilma wrote: »

I understand now - I've already reached the maximum limit /pension is capped at £155.65 (at current rates,) and i won't receive the additional pension i was hoping for (i.e. up to £276 per week?)

Do you mean prospective (i.e., you were not already over the 155 when the new system came in), or already accrued...?

Silvertabby

There's always pension credit, unless that is reformed, too?

There'll be pension credit for at least the duration of the single tier pension transitional period. The ultimate aim is that everyone will get the full £155 per week (the current means test limit) thus removing the need for pension credit. Those who, for whatever reason, don't accrue 35 years NI will probably get something else.

xylophone

I am very puzzled by the OP's comments.

She is now ( apparently) aged between 60 and 61.

I've worked and contributed for 45 years

I didn't contract out of SERPS (or second state pension)

I can no longer retire for another 6 years, (collect my state pension)

I currently receive half the amount of income i would if i were "officially" retired (fantastic government cost cutting exercise)

I'm too ill to work and actually have the the health of someone in their 80's (but still have the stress of proving i'm too ill to work)

It would appear that she is no longer working. Perhaps the OP can clarify.

She now refers to having had an expectation of a state pension of £276 a week.

So exact a figure would seem to indicate that at some point pre NSP she received a state pension forecast, indicating accrual of ASP which would have more than doubled the old BSP.

If this is the case, I simply cannot understand how her NSP starting amount is not in excess of £155.65 a week.

xylophone

There's always pension credit,

The NSP is set at an amount just above GPC for a single person.

At the moment, basic Guarantee Pension Credit tops up the income (see below for definition)

pensions (state, private and occupational)
 earnings (but see below for partial disregards)
 income from annuities
 most DWP benefits
 Working Tax Credit
 deemed income from capital

of a single pensioner of the relevant age to ( at least) £155.60 and of a couple to £237.77.

"Guarantee Credit provides a guaranteed level of income for people over
the qualifying age, which is increasing at the same pace as the State
Pension age for women. The qualifying age is now 63 and will be 63
years and 9 months by April 2017. Guarantee Credit is worked out by
comparing your income with the amount the Government thinks you
need to live on. If you have a disability, are a carer or have to pay
housing costs, you may be eligible for a higher amount.

Guarantee Credit is calculated by comparing your income with your
appropriate minimum guarantee.

Your appropriate minimum guarantee is the amount of money the
Government thinks you need to live on each week. It is made up of the
standard minimum guarantee for a single person or couple, plus any
extra amounts you might be entitled to for severe disability, caring
responsibilities, and/or housing costs. The appropriate minimum
guarantee is often referred to as the ‘appropriate amount’.

You indicate that you are married - it may be that your joint income would be such that GPC would not be available to you - full details of current rules are in the Age Concern Factsheet to which I linked in my previous.

Silvertabby

I am very puzzled by the OP's comments.

She is now ( apparently) aged between 60 and 61.

“ I've worked and contributed for 45 years

I didn't contract out of SERPS (or second state pension)

I can no longer retire for another 6 years, (collect my state pension)

I currently receive half the amount of income i would if i were "officially" retired (fantastic government cost cutting exercise)

I'm too ill to work and actually have the the health of someone in their 80's (but still have the stress of proving i'm too ill to work)
”
It would appear that she is no longer working. Perhaps the OP can clarify.

She now refers to having had an expectation of a state pension of £276 a week.

So exact a figure would seem to indicate that at some point pre NSP she received a state pension forecast, indicating accrual of ASP which would have more than doubled the old BSP.

If this is the case, I simply cannot understand how her NSP starting amount is not in excess of £155.65 a week.

Good point xylophone - if the OP always expected to be able to retire at 60 on an estimated State pension of £276 per week, then her foundation amount must be £276 per week.

jamesd

As I read it the up to 276 a week was meaning just the limit, not the actual amount due to the individual.