Will new S Pension cause resentment?

Silvertabby

They could also increase the pension credit limit at a different rate to the state pension making it harder to qualify for this.

Pension credit age for a woman is her State pension age, whereas pension credit age for a man is what would have been his State pension age had he been a woman.
For example, Mr S will be 65/State pension age in May 2018 but, as his pension credit age is later this year, that is when he can apply for Winter Fuel Allowance. Fortunately, we're in the the position of not being eligible for any means tested benefits.

Pension credit age - and State pension age - will be 65 for both men and women by 2020.

greenglide

I was talking about the income level that PC starts, the monetary amount, not the age.

By raising the minimum guarantee amount by more than the SP rate would drop people off PC in years to come.

Equally the automatic qualifying for other benefits could be withdrawn and replaced with separate rules. The automatic qualification is done to save money by not needing multiple means tests.

Apodemus

One point strikes me in respect of the anomalies in Fredandwilma's calculations. While it is very common for people to say that they have been paying NI for x years, not all these years will have counted, especially (as in her case) some of these years were part-time, low-paid student jobs.

In my case, I used to get annual letters telling me I have contributed £x but if I want the year to count, I need to pay another £y - which of course I never did! Like Fredandwilma, I might claim to have been working since I was 17 and paying NI for 40 years, but in practice, my qualifying years are much fewer (ten years fewer, in my case!)

slightlymiffed

Silvertabby wrote: »

Pension credit age for a woman is her State pension age, whereas pension credit age for a man is what would have been his State pension age had he been a woman.
For example, Mr S will be 65/State pension age in May 2018 but, as his pension credit age is later this year, that is when he can apply for Winter Fuel Allowance. Fortunately, we're in the the position of not being eligible for any means tested benefits.

Pension credit age - and State pension age - will be 65 for both men and women by 2020.

And state pension age for men and women will be 66 by (October) 2020.

fredandwilma

Just an update to say, there isn't an update.

I'm still awaiting the letter for my SP forecast.

For anyone else who has ordered a statement, apparently there has been a huge demand, and HMSS are still only halfway through calculating my SP. They have calculated the amount under the old rules but not the new rules. When i asked why it could take so long, the reply was, it's not as simple as that. I'm well over the 10 working days wait quoted, and i daresay i will still have to wait a week for 2nd Class postage.

All i can do is wait.

fredandwilma

I've now received my SP statement and it's as i expected. I will receive £155.65 and no more. I will only have one year when i didn't have full NI credits, by the time i retire, (not that it makes any difference.)

Interestingly, the qualifying amount for pension credit for a single person, is 5p less than than the amount for a single persons SP.

Guarantee Credit tops up your weekly income if it’s below £155.60 (for single people) or £237.55 (for couples).

The maximum SP currently is £155.65 for a single person and £238.60 for couples.


Retirement looks bleak and it's going to be a struggle, so i will put this to bed and return to living in the here and now.

JezR

fredandwilma wrote: »

Interestingly, the qualifying amount for pension credit for a single person, is 5p less than than the amount for a single persons SP.

That was all part of the rationale for the new SP and the setting of its level for full contributions marginally above pension credit.

xylophone

I've now received my SP statement and it's as i expected. I will receive £155.65 and no more. I will only have one year when i didn't have full NI credits, by the time i retire, (not that it makes any difference.)

You were never contracted out and have more than 35 years NI.

Your starting amount is the higher of the full NSP (£155.65) or old rules (BSP of £119.30 + Grad + SERPS+S2P).

It seems that your old rules BSP+Grad+SERPS+S2P was either less than £155.65 or equal to it.

This would indicate a very modest salary over the years when you were employed.

As far as is known at the moment, the full NSP will be uprated annually by 2.5% or earnings or inflation so that by the time that you become eligible to receive it (2021?), your pension will be higher than £155.65.

fredandwilma

JezR wrote: »

That was all part of the rationale for the new SP and the setting of its level for full contributions marginally above pension credit.

5p and 95p respectively. You've got to hand it to the government.

xylophone wrote: »

You were never contracted out and have more than 35 years NI.

Your starting amount is the higher of the full NSP (£155.65) or old rules (BSP of £119.30 + Grad + SERPS+S2P).

It seems that your old rules BSP+Grad+SERPS+S2P was either less than £155.65 or equal to it.

This would indicate a very modest salary over the years when you were employed.

As far as is known at the moment, the full NSP will be uprated annually by 2.5% or earnings or inflation so that by the time that you become eligible to receive it (2021?), your pension will be higher than £155.65.

This is true. As I've already said, I've never been a high earner, in fact, it was more lifestyle choice employment opposed to being financially rewarding. It was far more rewarding, in other ways.

You can't look back with regret. I've had a lot of fun along the way, and many experiences others may only dream about.

But even the best laid plans for the future don't always come to fruition.

Enjoy your life as it is now, and live in the moment.

Don't worry too much about the future. It may never happen.

Bootsox

fredandwilma wrote: »

Don't worry too much about the future. It may never happen.

...statistically though, the probability is that it will happen!