Old Rate v New Rate

Soulou

This is my first post,but I find it very unfair regarding the difference between the two rates, I was born just 1951 so get old rate. Because my husband has 2 very small pensions (not what he should have got) we are not eligible for pension credit etc. The gap is rising between the 2 rates, and,  the lower rate affects older pensioners who spend more on heating etc. Its just seems so unfair, they seem to think if you are above pension credit you are well off. Shouldn't people be shouting about the unfairness to older pensioners.

p00hsticks

Welcome to the forum. 
This topic comes up regularly on this board, and like most who raise it, you are either forgetting or are unaware that the new State Pension replaces not just the old basic state pension but also SERPS/S2P. This means that many under the old scheme will get more than the basic rate, and sometimes more than the maximum achievable under the new scheme.  

Here's one recent thread on the subject
https://forums.moneysavingexpert.com/discussion/6508760/state-pension-increase-fairness/p1

Nebulous2

Welcome to MSE.

The situation is much more nuanced than you describe, with changes always giving winners and losers.

You would need to give more detail on your own circumstances for people to comment better - but how old were you when you got your pension? 

Most of the people getting the higher rate will have to wait until they are 66 or 67. That earlier starting date was worth a lot. 

NannaMax

I am divorced so on a solo pension with all the increasing bills to pay. I was born in 1951 and am finding the increasing difference in the “old” pension and the “new” basic rate perplexing. From this month my rate vs the fixed rate has a £50+ differential. How can anyone say it’s right and/or fair? The annual increase is by a percentage so, each year, the gap widens. I do not live an extravagant lifestyle but am having to dip into my meagre savings more and more each month. I suppose I’ll reach a point when I have to start claiming some sort of pension credit. Demeaning after working and paying my way for just on 50 years
I have contacted my MP who says that’s just the way it is - totally disinterested. How will I survive at this rate in, say, 10 years time?

JoeCrystal

What is your state pension per week? Pension Credit tops up the income to £201.05 per week if you are single, for example. The government do not expect people to live an extravagant lifestyle on the state pension. That is why people make other provisions for their retirement rather than rely solely on state pensions to pay their bills. You did not have any problem claiming benefits such as the state pension, so you should have no trouble claiming pension credits and all other benefits and freebies that go with it.

If it makes your life a bit better by claiming, then do so! Billions are not spent on pension credits because people do not realise that they can claim, and they suffer from it either due to a lack of understanding or just generally refusal to claim out of pride.

You also failed to take into account that old state pensions are generally much more generous than the ones we are on since you can potentially get higher than the new one. For example, the full basic State Pension PLUS the Additional State Pension can be higher than the new rate.

If you cannot afford to live, then you need to figure out your budget. Is doing part-time or full-time work an option for you? Plenty of causal jobs around, especially during the Christmas season. 

xylophone

 I was born in 1951 and am finding the increasing difference in the “old” pension and the “new” basic rate perplexing. 

Then you were under 62 years old when you became eligible for state pension, possibly under 61 depending on your birthdate.

State Pension Age is now 66.

As you reached SPA after 5/4/2010, you needed only 30 qualifying years to  be eligible for a full basic state pension.

 If your  pension will be £171 a week from 8 April, presumably you have a full basic of  £169.30 but only a tiny amount of 

Grad/SERPS/S2P.

Do you have an occupational pension from a contracted out pension scheme?

dunstonh

 The gap is rising between the 2 rates, and,  the lower rate affects older pensioners who spend more on heating etc. Its just seems so unfair, they seem to think if you are above pension credit you are well off.

You are comparing the basic state pension, without SERPS, S2P or Graduated against the NSP.     That is not a fair comparison as its only taking one bit and comparing it with the NSP which replaces all of those.

Shouldn't people be shouting about the unfairness to older pensioners.

No.   If anything, many people are worse off on the NSP as they cannot contract out of SERPs/S2P or have contracted in benefits that push their weekly state pension over £300 per week.   The most they can get is £203.85

I was born in 1951 and am finding the increasing difference in the “old” pension and the “new” basic rate perplexing.

Well, follow this thread and you will not longer be perplexed.

From this month my rate vs the fixed rate has a £50+ differential. How can anyone say it’s right and/or fair? 

Because, like the OP, you are not comparing like for like.   Why are you not included SERPS, S2P and graduated but only the state pension?

. I suppose I’ll reach a point when I have to start claiming some sort of pension credit. Demeaning after working and paying my way for just on 50 years

The other argument is that you could have saved more whilst working.  At the end of the day, the state pension was never designed to do more than bring you up to or just beyond the breadline.    Anything you wanted more than that you had to put aside yourself.

But at least you have access to pension credit.   

BlackKnightMonty

dunstonh said:

 The gap is rising between the 2 rates, and,  the lower rate affects older pensioners who spend more on heating etc. Its just seems so unfair, they seem to think if you are above pension credit you are well off.

You are comparing the basic state pension, without SERPS, S2P or Graduated against the NSP.     That is not a fair comparison as its only taking one bit and comparing it with the NSP which replaces all of those.

Shouldn't people be shouting about the unfairness to older pensioners.

No.   If anything, many people are worse off on the NSP as they cannot contract out of SERPs/S2P or have contracted in benefits that push their weekly state pension over £300 per week.   The most they can get is £203.85

I was born in 1951 and am finding the increasing difference in the “old” pension and the “new” basic rate perplexing.

Well, follow this thread and you will not longer be perplexed.

From this month my rate vs the fixed rate has a £50+ differential. How can anyone say it’s right and/or fair? 

Because, like the OP, you are not comparing like for like.   Why are you not included SERPS, S2P and graduated but only the state pension?

. I suppose I’ll reach a point when I have to start claiming some sort of pension credit. Demeaning after working and paying my way for just on 50 years

The other argument is that you could have saved more whilst working.  At the end of the day, the state pension was never designed to do more than bring you up to or just beyond the breadline.    Anything you wanted more than that you had to put aside yourself.

But at least you have access to pension credit.   

Well said.