Frequency of State Pension

etienneg

sgx2000 said:

So why no monthly choice?

When SP was introduced, most people were paid weekly, so it was set up as a weekly benefit. That law has never changed - hence you still have the right to have it paid weekly.

It's trivial to calculate exactly the four weekly amount, and payment less often costs less to administer, whch is why DWP prefer four weekly. But it's not trivial to calculate exactly a monthly amount, as months have different numbers of days. Even an average is difficult, as the number of weeks in a year isn't an integer, and of course even the number of days in a year varies because of leap years.

Employment contracts are typically written starting with an annual salary, with no difference for leap years, so it's simple to divide by 12 to arrive at a "monthly" salary (with no difference for length of months). But without a change in the law, DWP can't do something along these lines, so they stick with weekly or four weekly payments.

german_keeper

I suspect the cost of changing the IT system to include a monthly option would be deemed not a worthwhile use of taxpayer's money.

Me and Mrs GK have set our pension payments up on a monthly basis because that is what we have always been used to when we were working. But when we get to SPA it won't really matter what the frequency will be, unless something drastic changes we will have more money than we have ever had. Lovely jubbly!

p00hsticks

I'm planning on setting up a new separate bank account to get mine paid into and then do a monthly standing order across to my main one - that way it will fit in better with my private pension and direct debits, which are all monthly. 

Marcon

sgx2000 said:

Surely the vast majority of the uk get paid monthly while working......
And we are all used to the occasional longer month....

So why no monthly choice?

All of my bills are direct debit monthly.....

I realise everyone is different, and many will be happy with the options available....

First world problem...

p00hsticks

Marcon said:

sgx2000 said:

Surely the vast majority of the uk get paid monthly while working......
And we are all used to the occasional longer month....

So why no monthly choice?

All of my bills are direct debit monthly.....

I realise everyone is different, and many will be happy with the options available....

First world problem...

And in an era where it's very quick and straightforward for most of us to set up additional bank accounts and transfers one which is easily solved if thought necessary, as per my post above....

LHW99

Or keep an additional small amount in an instant access savings where your C/A is held. Good for unexpected larger (few hundred) bills, and allows a quick top up if the 4-weekly payments run short in a long month.

where_are_we

Both OH and myself requested weekly payments direct to our current account from the start - remember the default option is every 4 weeks so you have to be proactive if you want weekly.

We prefer weekly because it covers DD`s and SO`s immediately as they appear in current account. We keep a very small balance in current account earning no interest and transfer excess funds to a easy access account earning more than 5%. 

There is a very small gain in interest doing it this way but with 2 weekly state pension payments (one quite large due to deferment of the old style state pension) every little bit extra helps!

vic_sf49

p00hsticks said:

I'm planning on setting up a new separate bank account to get mine paid into and then do a monthly standing order across to my main one - that way it will fit in better with my private pension and direct debits, which are all monthly. 

Now that's a genius idea. Need to jot that down, so I remember in 10+ years.

As all this talk of weekly, or 4 weekly is making me anxious. Sadly, I'm not joking. 

etienneg

p00hsticks said:

I'm planning on setting up a new separate bank account to get mine paid into and then do a monthly standing order across to my main one - that way it will fit in better with my private pension and direct debits, which are all monthly. 

Does the new separate bank account pay interest? If not, why is this better than just keeping larger (fluctuating) balances in your existing account?

Stubod

..when I take mine I will be opting for weekly.....just prefer the "cashflow" that way....