Gov launching pension age review

sgx2000

NickPoole said:

Not a fan of this at all. Won't affect me as getting state pension - I hope the new 16/17 voting cohort look for a party which won't do this.

The woke generation....hahaha.....

westv

Just as a matter of interest, what value would the full new state pension have if it had just kept in line with the RPI from the date the triple lock started until now.?. And what value if it had just kept in Iine with wage inflation?

NickPoole

sgx2000 said:

NickPoole said:

Not a fan of this at all. Won't affect me as getting state pension - I hope the new 16/17 voting cohort look for a party which won't do this.

The woke generation....hahaha.....

Not sure that comment makes any sense to me at all.

BlackKnightMonty

westv said:

Just as a matter of interest, what value would the full new state pension have if it had just kept in line with the RPI from the date the triple lock started until now.?. And what value if it had just kept in Iine with wage inflation?

RPI is a legacy rather more generous inflation measure which is utterly meaningless for anyone under the age of 50. CPI is the inflation measure for the 21st century. 

westv

BlackKnightMonty said:

westv said:

Just as a matter of interest, what value would the full new state pension have if it had just kept in line with the RPI from the date the triple lock started until now.?. And what value if it had just kept in Iine with wage inflation?

RPI is a legacy rather more generous inflation measure which is utterly meaningless for anyone under the age of 50. CPI is the inflation measure for the 21st century. 

Ok CPI and RPI then. You can get a RPI linked annuity, so it still exists for the time being.

Exodi

westv said:

Just as a matter of interest, what value would the full new state pension have if it had just kept in line with the RPI from the date the triple lock started until now.?. And what value if it had just kept in Iine with wage inflation?

As discussed above, CPI is used now (except the first year) - numbers below (it's been a slow morning), table also below if someone wants to use the data.

Based on weekly values, multiply by 52 if you so desire (%'s stay the same).

The new state pension was introduced in 2016 whereas the triple lock was introduced in 2010, so the values before are just for theoretical purposes.

You'll note in 22_23 the Triple Lock used CPI despite 'Earnings' being higher - this is because it was temporarily replaced by parliament for a Double Lock due to an unusual spike in earning during the pandemic.

	Triple Lock			CPI		Earnings
TY	Note	%	Amount	%	Amount	%	Amount
11_12	RPI	4.6%	£133.26	3.1%	£131.35	1.3%	£129.06
12_13	CPI	5.2%	£140.19	5.2%	£138.18	2.8%	£132.67
13_14	+2.5%	2.5%	£143.69	2.2%	£141.22	1.6%	£134.79
14_15	CPI	2.7%	£147.57	2.7%	£145.03	1.2%	£136.41
15_16	+2.5%	2.5%	£151.26	1.2%	£146.77	0.6%	£137.23
16_17	Earnings	2.9%	£155.65	-0.1%	£146.62	2.9%	£141.21
17_18	+2.5%	2.5%	£159.35	1.0%	£148.09	2.4%	£144.60
18_19	CPI	3.0%	£164.35	3.0%	£152.53	2.2%	£147.78
19_20	Earnings	2.6%	£168.60	2.4%	£156.19	2.6%	£151.62
20_21	Earnings	3.9%	£175.20	1.7%	£158.85	3.9%	£157.53
21_22	+2.5%	2.5%	£179.60	0.5%	£159.64	-1.0%	£155.95
22_23	CPI	3.1%	£185.15	3.1%	£164.59	8.6%	£169.36
23_24	CPI	10.1%	£203.85	10.1%	£181.21	5.5%	£178.67
24_25	Earnings	8.5%	£221.20	6.7%	£193.35	8.5%	£193.86
25_26	Earnings	4.1%	£230.25	1.7%	£196.64	4.1%	£201.81
					-14.6%		-12.4%

Cobbler_tone

At the risk of sounding like a junior doctor, I don't think my earnings have kept up with any of those columns. I'm sure I'm not alone. I did enjoy one year of 6%, which was unprecedented in my 31 years, along with a non-consolidated £1,000 'cost of living' payment, that was worth £500 odd after tax/NI. From memory one pay freeze during Covid.
It is why I don't worry too much about not having full RPI/CPI protection on the DB pension because you feel it for your entire life. If we saw sustained 10%+ levels the country will have bigger problems!
I appreciate that it has a far bigger impact for anyone on the bread line and hand to mouth.

kippo1

If no party is willing to make any changes maybe the IMF will insist on pension changes like they did with greece before they bail us out in 18 months time.

westv

Cobbler_tone said:

At the risk of sounding like a junior doctor, I don't think my earnings have kept up with any of those columns. I'm sure I'm not alone. I did enjoy one year of 6%, which was unprecedented in my 31 years, along with a non-consolidated £1,000 'cost of living' payment, that was worth £500 odd after tax/NI. From memory one pay freeze during Covid.

No, no, no sir/or madam. Not JUNIOR anymore, "resident" please. 

Stubod

I understood that even with the triple lock, the SP has only increased by around RPI since the triple lock was intoduced.??

Also noted that the UK SP is one of the lowest in Europe??....although I am aware there are other "benefits" that would need to be factored in.

However I guess the bottom line is that it is unafordabe and getting ever more so. Not sure why they don't simply increase income tax as that way everybody feels a bit of pain, (pensioners included), while at the same time increase the tax allowance to compensate for lower incomes, and remove "tax free interest" on ISA's etc which (mainly), only benefit the wealthy, (and at the same time replace this with a general increase on savings before tax is paid??)