MSE News: Government outlines flat-rate state pension

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
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  • "The new pension - based on £144 each week in today's money - was due to be introduced in 2017, but will now begin from April 2016 ..."
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    Flat-rate state pensions brought forward to 2016

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  • edited 20 March 2013 at 2:16PM
    jamesdjamesd Forumite
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    edited 20 March 2013 at 2:16PM
    The Chancellor has just announced to the Commons that the new flat rate pension will pay £144 a year.

    The MSE story is probably more correct.

    At least there was a mention of the Additional State Pension. Though not that those working who would have more than £144 of total state pensions accrued will lose out on a year's accrual of the additional state pension and at least £1.70 a week for their retired life as a result of bringing the start date forward by a year.
  • edited 20 March 2013 at 2:39PM
    CRISPIANNE3CRISPIANNE3 Forumite
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    edited 20 March 2013 at 2:39PM
    zagfles wrote: »
    So you weren't self-employed? So why do you think you'll be worse off by missing the cut-off date? Most people who were employed won't get any more under the new state pension system.


    Could be because my forecast is at the moment is £123.00 per week in todays money and obviously includes the second part. The government are saying the new amount will be £144 and has we know that is again in todays money. So based on the two figures quoted please explain how I am not going to be worse off.

    If its the case they take away the bus pass, heating allowance and free prescriptions for those receiving the £144 then I probably would be no worse off.
  • FrogletFroglet Forumite
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    Could be because my forecast is at the moment is £123.00 per week in todays money and obviously includes the second part. The government are saying the new amount will be £144 and has we know that is again in todays money. So based on the two figures quoted please explain how I am not going to be worse off.

    If its the case they take away the bus pass, heating allowance and free prescriptions for those receiving the £144 then I probably would be no worse off.

    They won't take those away I'm sure, there would be too big an outcry.Yet people like you and me,or rather,my husband who misses out by a few weeks will definitely be worse off.If he had been born just 3 months later he woud be getting the £144 instead of the £123 like you.

    How the hell can that be fair.They should do it on a sliding scale.Imagine what it's like for those who lose out by ONE day!
  • CRISPIANNE3CRISPIANNE3 Forumite
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    Froglet wrote: »
    They won't take those away I'm sure, there would be too big an outcry.Yet people like you and me,or rather,my husband who misses out by a few weeks will definitely be worse off.If he had been born just 3 months later he woud be getting the £144 instead of the £123 like you.

    How the hell can that be fair.They should do it on a sliding scale.Imagine what it's like for those who lose out by ONE day!

    It does not matter what the so called experts say based on my situation I am going to be worse off. I know I have two final salary pensions but I worked for them and put extra in when while my friends were more concerned at just having a good time.

    This government is always changing their mind and who knows they may bring the new rate forward to April 2015.
  • GoldiegirlGoldiegirl Forumite
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    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?

    My husband's State pension date is October 2016, so it's all quite confusing - last week we thought he'd miss the changes and now he's included again.

    We haven't had a pension forecast done for a few years, the last one was in 2005, and it was around £144 then, so I expect his pension forecast will be similar to your husbands.

    Linton's reply reassures me that my husband won't lose what he's accrued already.
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  • StevieJStevieJ Forumite
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    Froglet wrote: »
    They won't take those away I'm sure, there would be too big an outcry.Yet people like you and me,or rather,my husband who misses out by a few weeks will definitely be worse off.If he had been born just 3 months later he woud be getting the £144 instead of the £123 like you.

    How the hell can that be fair.They should do it on a sliding scale.Imagine what it's like for those who lose out by ONE day!
    Does he not retire at 65 whereas there will be many born not so much later will have to wait until 66+ and still not receive that £144.
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  • FrogletFroglet Forumite
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    StevieJ wrote: »
    Does he not retire at 65 whereas there will be many born not so much later will have to wait until 66+ and still not receive that £144.

    Yes,he retires in January 2016,at 65.In April those who retire then will still only be 65.

    The new retirement age of 66 does not start until 2020.That is why i said it should be on a sliding scale until the age off 66 kicks in.I am already having to wait 4 years past my 60th birthday so we both lose out.

    He has worked for 47 years so he would have qualified for the full amount.Like Crispianne says,the experts can say all they like i KNOW he will be worse off over the course of his retirement by a considerable sum.

    I can't see them bringing it forward any further sadly.
  • BasjoeBasjoe Forumite
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    I am confused about where I now stand with my State Pension.

    My date of birth is July 1951. I took early retirement in 2002. I have accumulated 30 qualifying years toward a State Pension, and under the old system this was sufficient to get a full state pension in 2016.
    The confusion stems from the fact that I will now qualify for the new flat rate pension, but I read that qualifying years for the full rate has now increased to 35.

    Clarification/advice gratefully received.

    "Basjoe"
  • jamesdjamesd Forumite
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    There isn't any 30 years to get to a full state pension. It currently continues to increase for as long as you are working and paying NI, by at least £1.70 a week for each year of work in Additional State Pension on top of the Basic State Pension part.

    At 30 years under current rules you will get a full Basic State Pension plus whatever you have accumulated in Additional State Pension from your SERPS and S2P NI portion.

    Those who reach state pension age after the new system comes in will get 30/35 times the £144 if that is more than they are entitled to under the current rules. Unless you were contracted out or self employed for most of your working life you will probably get more under the current rules and transitional protection will keep you at that higher level.

    What you should do is get a state pension statement. Then look to see what you're currently due to get in Basic State Pension and Additional State Pension. If that is less then £144 you can choose to buy additional years to increase your entitlement from 30/35 times £144 to the full £144. But don't buy those years until you've confirmed that you're not already going to get more than £144, you probably are.
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