State pensions to rise by 3.9% - MSE News

phillw

westv wrote: »

Remembering of course that any increase now benefits you when you claim.

The ponzi scheme will collapse before then.

etienneg

Not every pensioner receives one of the two amounts quoted, as it all depends on number of NI years, SERPS/S2P, etc.

Does the 3.9% increase apply to ALL constituent parts of the state pension, please?

molerat

etienneg wrote: »

Not every pensioner receives one of the two amounts quoted, as it all depends on number of NI years, SERPS/S2P, etc.

Does the 3.9% increase apply to ALL constituent parts of the state pension, please?

No. For both pre and post 2016 pensions only the basic pension amount increases by the 3.9%. Pre 2016 additional pension and post 2016 protected amounts increase by the 1.7% CPI figure. https://www.thisismoney.co.uk/money/pensions/article-5032049/Why-parts-state-pension-rise-different-rates.html

drumtochty

No the amount above 168.60 a week for those with a good amount of SERPS / SSP only goes up by CPI.

etienneg

Thanks for the information, molerat and drumtochty.

It's interesting that hardly anyone seems to mention things like this, so the population at large just sees headlines such as "State pensions to rise by 3.9%".

It's similar with private pensions, where we always get comments about "gold-plated, index-linked pensions". There, different contributions result in different levels of indexation (if any), particularly pre and post 1988 contributions.

Still, why let the truth get in the way of a good rant?!

nigelbb

When the state pension goes up because of growth in average earnings it's effectively self-funded as the amount of National Insurance collected is higher because earnings are higher.

NedS

And in the meantime the government is saving ££££ by raising the retirement age forcing more and more older people into claiming working age benefits paid at £73.10 per week with no increases rather than state pension of £168.60/week with generous increases.

Thrugelmir

MaxiRobriguez wrote: »

The reality is pensioners as a generation have by far the most wealth now

After working for all their lives. Seems perfectly correct. Much of the accumulated wealth will likewise be spent over time.

Mick70

something will give with an aeging population, Im nrly 50 and my state pension age is currently 67 but i'm planning on that changing to 69/70 on any forecasts I make .
It wont be too long before 70 becomes the norm and eventually I can see it being phased out once all workers are forced to pay into a private pension

LHW99

Mick70 wrote: »

something will give with an aeging population, Im nrly 50 and my state pension age is currently 67 but i'm planning on that changing to 69/70 on any forecasts I make .
It wont be too long before 70 becomes the norm and eventually I can see it being phased out once all workers are forced to pay into a private pension

If SPA had been increased with life expectancy since it was introduced I believe it would already be approaching 80 - so even 70 is generous. And that is SPA, not retirement age necessarily.