Will they get rid of or reduce full state pension?

sevenhills

No, will stay

Stubod said:

..yes, I recently read that the gov. plan to stop paying the state pension completely, (even those getting it now), sometime in the next 3 to 5 years....best start saving!!

If our NI was paid into a private pension instead, personal responsibility and all that, would it be much different?

QrizB

sevenhills said:

Stubod said:

..yes, I recently read that the gov. plan to stop paying the state pension completely, (even those getting it now), sometime in the next 3 to 5 years....best start saving!!

If our NI was paid into a private pension instead, personal responsibility and all that, would it be much different?

Higher earners would be better off, low earners would be worse off.

Pollycat

MrE1 said:

I'm projected to be heavily reliant on state pension when I reach pension age! 

What are your plans to try to change this?

Silvertabby

No, will stay

SouthCoastBoy said:

Silvertabby said:

Stubod said:

..yes, I recently read that the gov. plan to stop paying the state pension completely, (even those getting it now), sometime in the next 3 to 5 years....best start saving!!

It was rumoured that the Tories were going to abolish the State pension for all - including current recipients - just before the 1997 General Election.  I did wonder if that was partly why Labour won with a landslide....

Below is an extract from the 1997 Tory Manifesto, not sure how high the NI rebates would have to be to be at least as good as the state pension, but I imagine quite large?

At the start of the next parliament we will set out proposals to provide all young people entering the workforce with a personal pension fund paid for through a rebate on their national insurance contributions. At retirement they would be entitled to the full pension earned by this accumulated investment. This could give them a pension significantly higher than they would currently receive from the state. But they will be guaranteed a pension at least equal to the current bask state pension, increased in line with inflation.

This will be one of the most significant improvements in the state pension system since it was introduced.

Older people currently in the workforce would be unaffected - they will continue to contribute as now and receive the normal state pension when they retire.

This policy would come into effect early in the new millennium. Gradual phasing in of the new system over 40 years will make the impact on public finances affordable. Even at its peak, the net revenue forgone will be only a fraction of the savings from the recent Pensions Act. And eventually, the new policy will produce massive public expenditure savings.

http://www.conservativemanifesto.com/1997/1997-conservative-manifesto.shtml

That wasn't the rumour.  The elderly lady living next door to my sister was so sure that she would immediately lose her only source of income she had a heart attack.  Thankfully, she was ok.

Silvertabby

No, will stay

sevenhills said:

Stubod said:

..yes, I recently read that the gov. plan to stop paying the state pension completely, (even those getting it now), sometime in the next 3 to 5 years....best start saving!!

If our NI was paid into a private pension instead, personal responsibility and all that, would it be much different?

Yes.  Less responsible people would blow the lot in their first few years of retirement, then expect to be allowed to dip into the public purse.

You only have to look back to when the 'Pension Freedoms' were announced a few years ago - many people said then that they would live the high life for as long as they could, then 'the government could/would keep them'.

There were even speculations that the new 'free' pensioners would blow the lot on a Ferrari - but that was poo-poohed by the presumption that those who had been responsible to save for their retirements would continue to be responsible 
- but with 'Deprivation of Pension Assets' rules set in place for those were not. 

Really?  I know this is the LGPS rather than the State pension.....But when the Freedoms were announced we were swamped with calls from members/deferred members/even a few pensioners who thought they could have their benefits as cash. Now.  During lengthy conversations about how the Freedoms didn't apply to DB schemes, and how they would have to seek independent financial advice before transferring out, yadda yadda,  many told me of their plans for their 'windfalls'.  Big family weddings, holidays of a lifetime, new kitchen, new car, etc.  One lady (a near minimum wage school cleaner) told me that the first thing she was going to buy would be a Gucci handbag - because she'd never have that sort of money ever again.

woolly_wombat

Silvertabby said:

Really?  I know this is the LGPS rather than the State pension.....But when the Freedoms were announced we were swamped with calls from members/deferred members/even a few pensioners who thought they could have their benefits as cash. Now.  During lengthy conversations about how the Freedoms didn't apply to DB schemes, and how they would have to seek independent financial advice before transferring out, yadda yadda,  many told me of their plans for their 'windfalls'.  Big family weddings, holidays of a lifetime, new kitchen, new car, etc.  One lady (a near minimum wage school cleaner) told me that the first thing she was going to buy would be a Gucci handbag - because she'd never have that sort of money ever again.

Crikey Silvertabby, that’s an enlightening post.

MrE1

Pollycat said:

MrE1 said:

I'm projected to be heavily reliant on state pension when I reach pension age! 

What are your plans to try to change this?

3 possible plans pollycat, if I can deliver on one or more of them

1) buy more pension though the local government pension scheme's (Lgps) additional pension contributions (apc)

2) get a higher paid job to increase the projected workplace pension

3) make it on the stock market, which I almost did a year ago

MrE1

Thank you everyone for such a high response rate to the poll 

sevenhills

No, will stay

Silvertabby said:

Yes.  Less responsible people would blow the lot in their first few years of retirement, then expect to be allowed to dip into the public purse.

You only have to look back to when the 'Pension Freedoms' were announced a few years ago - many people said then that they would live the high life for as long as they could, then 'the government could/would keep them'.

There were even speculations that the new 'free' pensioners would blow the lot on a Ferrari.

These pension freedoms are ok, so long as we all have the state pension as back up.
Those freedoms should not be applied to your sole pension.

MrE1

marlot said:

I suspect it could become means-tested at some point.

That's a valid point! Would anyone have any opinions or evidence on the likelihood of state pension becoming means tested?