MSE News: Government outlines flat-rate state pension

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
373 replies 47.8K views
1232426282938

Replies

  • jamesdjamesd Forumite
    25.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    srcandas wrote: »
    Being born 27/4/1951 he has been ranting to anyone who will listen that he missed out by a year.
    Since he'd reach state pension age after the proposed new introductory rate he'd get the new payout instead of the older one.
    srcandas wrote: »
    As he has accumulated enough years for a full state pension he assumed he would get £107.
    He's only accumulated enough years for a full basic state pension because he wasn't paying much in the way of NI contributions for SERPS and S2P. A full state pension is around £250 a week after the additional state pension portion is included. Even for a person on minimum wage the full state pension is around £190 a week.
  • Bigmoney2Bigmoney2 Forumite
    640 Posts
    srcandas wrote: »
    Sorry to ask detail but my brother needs all the help he can get.

    He will not apply for anything that is means tested - fullstop. He thinks everyone in society is plotting against him :D

    He worked for a few years (let's say 10) in the county court. Probably a salary of £17000 at today's rates. He then ran a book shop (sole trader for say 6 years).

    He was then a self employed driving instructor until at 50 he became my mum's carer (8 years) until she died 2 years back.

    Being born 27/4/1951 he has been ranting to anyone who will listen that he missed out by a year.

    As he has accumulated enough years for a full state pension he assumed he would get £107.

    When I suggested that a year earlier would give him more he simply ranted (normal form of communication) that I did not understand and that moving it a year earlier did not impact him as it didn't say the birth date had moved back a year.

    He will still rant but that increase would make a lot of difference to him.

    Any thoughts? :beer:

    I would suggest your brother gets a state pension forecast and a statement of NI contributions/credits.

    https://www.gov.uk/state-pension-statement

    https://www.gov.uk/national-insurance-credits/check-your-national-insurance-record
  • srcandassrcandas Forumite
    1.2K Posts
    Ninth Anniversary 1,000 Posts Combo Breaker
    ✭✭✭
    Bigmoney2 wrote: »
    I would suggest your brother gets a state pension forecast and a statement of NI contributions/credits.

    Many tx bigmoney, I'll try ;)

    I just did an assessment online myself but the system is still working on a £107 base despite my retirement being late 2017 (not impacted by the 2016 move). In my case it offers a £92 extra giving £199.

    Any thoughts on what that might become with a £144 base. I assume the gov will claw back some of the £92?

    :beer:
    I believe past performance is a good guide to future performance :beer:
  • edited 17 March 2013 at 7:50PM
    SnowManSnowMan Forumite
    3.3K Posts
    Part of the Furniture 1,000 Posts Photogenic
    ✭✭✭✭
    edited 17 March 2013 at 7:50PM
    srcandas wrote: »
    Many tx bigmoney, I'll try ;)

    I just did an assessment online myself but the system is still working on a £107 base despite my retirement being late 2017 (not impacted by the 2016 move). In my case it offers a £92 extra giving £199.

    Any thoughts on what that might become with a £144 base. I assume the gov will claw back some of the £92?

    :beer:

    You keep the £199pw. You just won't be able to accrue any further state pension after 2016.

    The first £144pw of this will be increased in payment in line with the triple lock guarantee (unless they change this) whereas the remaining £55pw will increase in payment at CPI.

    So you could be affected by this latest announcement as you lose a year of potential further accrual of state second pension in 2016/2017.
    I came, I saw, I melted
  • ognumognum Forumite
    4.8K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    My husbands state pension date is August 2016, his pension forecast was £210 including pension and second pension. Does this mean he will now receive just £140?
  • LintonLinton Forumite
    14.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    ✭✭✭✭✭
    ognum wrote: »
    My husbands state pension date is August 2016, his pension forecast was £210 including pension and second pension. Does this mean he will now receive just £140?


    No. When the new pension comes in people not yet drawing a pension will be transferred to the new rules, and their pension set at the maximum of what they would have got under the old rules given their contributions up til that date and what they would be due under the new. So no-one should lose anything they have accrued so far.

    Of course all this is just hypothetical at the moment as nothing has been agreed by Parliament.
  • SnowManSnowMan Forumite
    3.3K Posts
    Part of the Furniture 1,000 Posts Photogenic
    ✭✭✭✭
    ognum wrote: »
    My husbands state pension date is August 2016, his pension forecast was £210 including pension and second pension. Does this mean he will now receive just £140?

    As Linton says under the latest proposal to bring foward implementation to April 2016 your husband will come under the new scheme rather than the old scheme. However the pension he has built up of £210 will be honoured.

    There may even be a small advantage to falling under the new scheme, as it appears under the current proposals that £144 of his £210 pension will be subject to the triple lock guarantee in payment under the new scheme but only £107 of the pension would have been subject to the triple lock guarantee under the current state scheme.
    I came, I saw, I melted
  • bigfreddielbigfreddiel
    4.3K Posts
    ✭✭✭✭
    Well brilliant new for some. If they do bring it forward I will miss out by 6 months.

    but you get toworkfor a further 6 months and so earn far more than any sp

    also being younger you have longer to live when us older than you will be dead - now if that isn't the biggest bonus i don't know what is

    see ya!

    fj
  • CRISPIANNE3CRISPIANNE3 Forumite
    1K Posts
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    ✭✭✭
    but you get toworkfor a further 6 months and so earn far more than any sp

    also being younger you have longer to live when us older than you will be dead - now if that isn't the biggest bonus i don't know what is

    see ya!

    fj


    I retired at 60 on two final salary pensions because I thought ahead in my younger days.
  • uk1uk1 Forumite
    1.4K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭
    Will people who defer the pensions under the old system ie with an 11% uprate for each years delay - have that amount in future years halved - or will the government be operating two different different rates - one delaying under the old system and one for people delaying under the new regime?

    Thanks.
This discussion has been closed.
LATEST MSE NEWS AND GUIDES

Cut overdraft charges

10 tips to pay less for your overdraft + how to pay it off

MSE Guides

FREE tennis coaching

Find your nearest session and pre-book your place online

MSE Deals