MSE News: Government outlines flat-rate state pension
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Jaycee - You say
"Let us put it this way, after 40 years of working would I advise anyone young to save? In my experience - if you think you can save a lot so you can live comfortably off the income - yes. If you can only save modestly - do not bother. You will not be rewarded for trying to do the right thing in our society."
100% agree with your comment!!0 -
twentyfour11 wrote: »If you can only save modestly - do not bother. You will not be rewarded for trying to do the right thing in our society.
The flat rate pension is designed to try and counter that.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
twentyfour11 wrote: »If you can only save modestly - do not bother. You will not be rewarded for trying to do the right thing in our society."
A strange comment in response to a white paper setting out proposals that should greatly reduce means testing in retirement, and so will reward people for saving modestly or saving big time for that matter.I came, I saw, I melted0 -
worked all my life and my reward is to get £37.50 pw less then people who are one year younger than me.
Brilliant system!!0 -
twentyfour11 wrote: »worked all my life and my reward is to get £37.50 pw less then people who are one year younger than me.
Brilliant system!!
Yes and there will be a LOT of people who are in the same boat,my husband for one.Unfair and cruel.There must be some way to give everyone the same and gradually phase out the second state pension but return what has been paid in already.0 -
The biggest gainers from the new system will be the self employed so its very frustrating to reach SPA a year before as otherwise, as you rightly say, you would have got the new rate of £144 assuming you have the full 35 yrs NI record.
Employed pay 1 class N I
Self Employed pay 2 class of Ni
& if both employed & Self Employed you pay 3 classes of NI
Link :- http://www.nidirect.gov.uk/employed-and-self-employed-tax-and-national-insurance-worked-example
So the way I see it the Self employed pay MORE NI and get less for their buck. Somebody had to stick up for the Self Employed.
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As far as I can make out this is a disasterous white paper for those folks who have insufficient NI contributions but who under the present regs can claim a Category 'B' Pension on their partner's (or ex-partner's) contributions.
Am I right:
For someone reaching pension age after 2017 -
They will need 10 years Contributions in order to get anything - before it was 1 year.
They will no longer be able to claim 60% of partner's pension if partner's is bigger than their own.
So what to do?
Before April this year pay voluntary contributions for the last 6 years?
Pay voluntary contributions from now on?
I can think of many examples of folks who will be smacked with this. Mostly women of course.
This is despicable. Surely this betrayal cannot pass into law!
What's the likelyhood it will all come to nothing?0 -
As far as I can make out this is a disasterous white paper for those folks who have insufficient NI contributions but who under the present regs can claim a Category 'B' Pension on their partner's (or ex-partner's) contributions.
Am I right:
For someone reaching pension age after 2017 -
They will need 10 years Contributions in order to get anything - before it was 1 year.
They will no longer be able to claim 60% of partner's pension if partner's is bigger than their own.
So what to do?
Before April this year pay voluntary contributions for the last 6 years?
Pay voluntary contributions from now on?
I can think of many examples of folks who will be smacked with this. Mostly women of course.
This is despicable. Surely this betrayal cannot pass into law!
What's the likelyhood it will all come to nothing?
I'm sure iv'e read somewhere but cannot find it at the moment that the proposal is to keep the safety net of Pension & savings credits @ the moment is about £142.00 a week.
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A strange comment in response to a white paper setting out proposals that should greatly reduce means testing in retirement, and so will reward people for saving modestly or saving big time for that matter.
I appreciate the intent and I said as much in my post. But the reality for many - as this thread shows - is that their life experience concurs with my point. We did save and were penalised.
IF this new idea works long term then fantastic. However, I have seen so many changes in pensions policy over the past decade alone and been adversely affected by them all - and seen my modest savings destroyed by greedy bankers - and faced things you cannot plan for (like having to become a full time carer) that I would not dare predict how things will be for today's youngsters when they retire.
So, sorry if you disagree, but all I can reasonably offer is advice based on my experience and that is what I did.0 -
twentyfour11 wrote: »worked all my life and my reward is to get £37.50 pw less then people who are one year younger than me.
Brilliant system!!
I'm in the same position more or less. You get what you always thought you would get. What's the problem? How does someone else getting a bit more affect you? Males coming soon after us will have a year extra to wait before they get their pension. Pluses and minuses.0
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