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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 14th Jan 13, 11:30 AM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: Government outlines flat-rate state pension
    • #1
    • 14th Jan 13, 11:30 AM
    MSE News: Government outlines flat-rate state pension 14th Jan 13 at 11:30 AM
    "The Coalition's proposals include plans to introduce a single flat-rate state pension for new pensioners from 2017..."

Page 14
    • uk1
    • By uk1 18th Mar 13, 4:10 PM
    • 1,224 Posts
    • 885 Thanks
    uk1
    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.
    • jamesd
    • By jamesd 18th Mar 13, 7:50 PM
    • 23,494 Posts
    • 15,831 Thanks
    jamesd
    Two different rates.
    • zagfles
    • By zagfles 18th Mar 13, 8:44 PM
    • 14,702 Posts
    • 13,136 Thanks
    zagfles
    I retired at 60 on two final salary pensions because I thought ahead in my younger days.
    Originally posted by CRISPIANNE3
    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.
    • sunfloweroil
    • By sunfloweroil 18th Mar 13, 9:32 PM
    • 4 Posts
    • 0 Thanks
    sunfloweroil
    144 pension
    I was born on 1st August 1952 and have worked for 44 years I will be entitled to draw my state pension on 6th November 2014 approx £110 per week. Anybody who retires from 5th April 2016 will receive £144 per week. Can anyone tell me how this is fair?
    • jem16
    • By jem16 18th Mar 13, 9:35 PM
    • 18,718 Posts
    • 11,561 Thanks
    jem16
    I was born on 1st August 1952 and have worked for 44 years I will be entitled to draw my state pension on 6th November 2014 approx £110 per week.
    Originally posted by sunfloweroil
    What happened to your entitlement to SERPS/S2P? Were you in a contracted out scheme?

    Anybody who retires from 5th April 2016 will receive £144 per week. Can anyone tell me how this is fair?
    I retire after this date and will not receive the £144.
    • sunfloweroil
    • By sunfloweroil 18th Mar 13, 10:32 PM
    • 4 Posts
    • 0 Thanks
    sunfloweroil
    Yes I was contracted out.
    How come you won't get the £144?
    • jem16
    • By jem16 18th Mar 13, 10:37 PM
    • 18,718 Posts
    • 11,561 Thanks
    jem16
    Yes I was contracted out.
    How come you won't get the £144?
    Originally posted by sunfloweroil
    For the same reason that you wouldn't if your retiral date was after the new state pension comes in.

    Those who have been contracted out for all of their working life will have a deduction placed on the flat pension which will bring it back down to the same level as the current basic pension.
    • zagfles
    • By zagfles 18th Mar 13, 10:59 PM
    • 14,702 Posts
    • 13,136 Thanks
    zagfles
    Seems there's an incredible amount of ignorance about the state pension changes. Perhaps people should read and understand the white paper before whinging: http://www.dwp.gov.uk/policy/pensions-reform/state-pension/
    • dampsquib
    • By dampsquib 19th Mar 13, 2:08 AM
    • 177 Posts
    • 98 Thanks
    dampsquib
    There’s going to be an awful lot of disappointed pensioners about after the new flat-rate pensions start. After hearing the headlines, most people perceive that all ‘new’pensioners are going to benefit from much bigger state pensions.
    The two main disappointed groups are going to be:
    • Existing pensioners who think (incorrectly) that younger relatives and neighbours are benefitting from much bigger pensioners than they receive, and
    • New ‘contracted-out’ pensioners, who start receiving not much more than the old-system state pension.
    Shame that the new scheme isn’t getting implemented before people vote in the next election.
    • jamesd
    • By jamesd 19th Mar 13, 2:39 AM
    • 23,494 Posts
    • 15,831 Thanks
    jamesd
    Or perhaps not a shame, since it'll give a chance for people to vote based on this raid on working people's pensions.

    The main disappointed group longer term is likely to be middle aged and younger people who will lose a substantial amount of state pension, so the first thing that all of their pension investing will have to do is make up for what's been taken from them.
    • wakeupalarm
    • By wakeupalarm 19th Mar 13, 11:57 AM
    • 740 Posts
    • 318 Thanks
    wakeupalarm
    I was born on 1st August 1952 and have worked for 44 years I will be entitled to draw my state pension on 6th November 2014 approx £110 per week. Anybody who retires from 5th April 2016 will receive £144 per week. Can anyone tell me how this is fair?

    Yes I was contracted out.
    Originally posted by sunfloweroil
    Your contracted out pension is likely to be more than any S2P you gave up by contracting out, and more than the £34 difference between the £144 and your state pension of approx £110.

    The flat rate pension isn't an increase on the basic state pension amount, its a cap on the total state pension at a couple of pounds above the means tested pension guaranteed credit amount.

    Very few groups of people win under the new system, the self-employed are one, the majority especially the young loose massively.

    Someone starting out now under the new system with the same 44 year work history as you when they retire will receive a maximum of £144 state pension.

    If you add your Aprrox £110 state pension with your contracted out pension, after 44 years working your pension is likely to be substantially more than £144.
    Last edited by wakeupalarm; 19-03-2013 at 12:00 PM.
  • Former MSE Darryl
    MSE News: Flat-rate state pensions brought forward to 2016
    "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 ..."

    Read the full story:

    Flat-rate state pensions brought forward to 2016



    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

    • jamesd
    • By jamesd 20th Mar 13, 1:13 PM
    • 23,494 Posts
    • 15,831 Thanks
    jamesd
    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.
    Last edited by jamesd; 20-03-2013 at 1:16 PM.
    • CRISPIANNE3
    • By CRISPIANNE3 20th Mar 13, 1:36 PM
    • 353 Posts
    • 207 Thanks
    CRISPIANNE3
    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.
    Originally posted by zagfles

    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.
    Last edited by CRISPIANNE3; 20-03-2013 at 1:39 PM.
    • Froglet
    • By Froglet 20th Mar 13, 1:45 PM
    • 2,582 Posts
    • 3,028 Thanks
    Froglet
    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.
    Originally posted by CRISPIANNE3
    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!
    • CRISPIANNE3
    • By CRISPIANNE3 20th Mar 13, 2:34 PM
    • 353 Posts
    • 207 Thanks
    CRISPIANNE3
    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!
    Originally posted by Froglet
    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.
    • Goldiegirl
    • By Goldiegirl 20th Mar 13, 3:45 PM
    • 8,511 Posts
    • 50,194 Thanks
    Goldiegirl
    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?
    Originally posted by ognum
    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.
    • StevieJ
    • By StevieJ 20th Mar 13, 3:56 PM
    • 19,603 Posts
    • 32,606 Thanks
    StevieJ
    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!
    Originally posted by Froglet
    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.
    Government: "Should we get a pet?" 52%: "Yes" Government: "OK, we'll get a cat" 1/2 of 52%: "Oh no, I hate cats. I wanted a dog."
    • Froglet
    • By Froglet 20th Mar 13, 4:51 PM
    • 2,582 Posts
    • 3,028 Thanks
    Froglet
    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.
    Originally posted by StevieJ
    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.
    • Basjoe
    • By Basjoe 20th Mar 13, 5:07 PM
    • 4 Posts
    • 1 Thanks
    Basjoe
    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"
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