April 2019 Pensions Increase

Dorian1958

Wouldn't it be fairer to base the increase in the average of the previous 12 months? Has the advantage of smoothing out the peaks and troughs, makes planning easier for the Exchequer and removes cynism at a stroke. Ok maybe not the cynicism bit.

marlot

hugheskevi wrote: »

...To breach the Lifetime Allowance with a DB pension requires a pension income in excess of £50,000 per year. Even for someone retiring with a full 2/3rds final salary pension, that is still a salary of £75,000.

Middle-income no longer seems to be based on mean or median salary

Or perhaps people like me, who were trying to be responsible, and saved additional money into my pension when I could. At the time the LTA was 1.8m and all the indications were that it would go up.

I'm on less than £75k, but over the LTA.

woolly_wombat

Oblivion wrote: »

Anyone with a Teachers Pension or Local Government Pension in payment will receive the CPI increase of 2.4%.

Except for LGPS Additional Pension purchased prior to 1 April 2012, which is increased, both in deferral and in payment, by RPI, i.e. 3.3%.

http://www.lgpsregs.org/timelineregs/GAD/Additional_Pension_Guidance_contracts_commencing_before%201April2012_Final.pdf

zagfles

Dorian1958 wrote: »

Wouldn't it be fairer to base the increase in the average of the previous 12 months? Has the advantage of smoothing out the peaks and troughs, makes planning easier for the Exchequer and removes cynism at a stroke. Ok maybe not the cynicism bit.

It is! The inflation figures are the rise over the last 12 months. They aren't the rate at which prices are rising at this instant in time. For instance the Sept inflation figure measures the difference in prices between Sept last year and Sept this year. That means it's already the average inflation rate over the 12 months.

[Deleted User]

My main expenses, all of which have gone up by a damn sight more than 2.4%:-


Council Tax, Energy, Food, Petrol.


Which of these doesn't CPI include?

zagfles

DeletedUser wrote: »

My main expenses, all of which have gone up by a damn sight more than 2.4%:-


Council Tax, Energy, Food, Petrol.


Which of these doesn't CPI include?

Council tax isn't included. See https://www.ons.gov.uk/economy/inflationandpriceindices/articles/ukconsumerpriceinflationbasketofgoodsandservices/2018

DairyQueen

DeletedUser wrote: »

My main expenses, all of which have gone up by a damn sight more than 2.4%:-


Council Tax, Energy, Food, Petrol.


Which of these doesn't CPI include?

The complete basket for CPI and CPIH can be downloaded from a link in Section 5 here. 'Tables 2 and 3' apply.

Council tax is one of the 'owner/occupier housing costs' excluded from the CPI but included in CPIH. This exclusion seems very strange given that CT is a material and mandatory cost for most households whether rented or owner-occupied. Go figure.

The list makes interesting reading. For example, this year, peaches have been replaced with raspberries and pork pies with quiche. Leg wax has been removed, and body lotion and exercise leggings added. Lager bought in nightclubs is also out.

It seems that raspberry-and-quiche munching, nightclub-avoiding, hairy-legged leggings-wearers are the new demographic.

Pork pie anyone?

[Deleted User]

Zagflies, i have previously read that document, and really couldn't make head nor tail of it. CPIH is not used by the Gov to portray inflation, (does anyone use it?) yet is constantly referred to, why? To confuse people? It worked.


Thanks Dairyqueen, you illustrate to some extent what i was already beginning to think.

zagfles

DeletedUser wrote: »

Zagflies, i have previously read that document, and really couldn't make head nor tail of it. CPIH is not used by the Gov to portray inflation, (does anyone use it?) yet is constantly referred to, why? To confuse people? It worked.


Thanks Dairyqueen, you illustrate to some extent what i was already beginning to think.

Don't know - I would have thought CPIH would be the sensible measure to use as it includes housing costs. Perhaps if Gordon Brown had decided to use CPIH rather than CPI as the BoE's target inflation measure we wouldn't have had run away house prices.

JoeCrystal

DeletedUser wrote: »

My main expenses, all of which have gone up by a damn sight more than 2.4%:-


Council Tax, Energy, Food, Petrol.


Which of these doesn't CPI include?

I agreed with your statement. I reckon for most people, the personal inflation rate would be higher. I had a look at my budget. Fortunately, I managed to get a 6% pay rise this year so that helps.

My Council Tax went up by 5.9%
My Energy went up by 3.2%
My Water went up by 3.8%.