State Pension to be Cut? or Raised?

[busby1971]

Linky thing to Article

I've read this a couple of times and cannot see the word savings or cuts, but fairer and simpler always make me suspicious, especially when its a minister.

By the way its not that complicated you can request an estimate from the Govt and they tell you how much you'll get, I'm assuming that the DWP are not over staffed with nobel winning economists.

This could be a fairness to those that have worked all their lives, if the move of the basic pension to above the means test goes ahead, this could mean that those who haven't worked all their life are no longer better off than those who have managed to save just enough to breach the means test barrier, ie if you are below you then get a whole host of other benefits which super charge them past the hard working low paid people. This boost to the workshy's basic pension could mean they get less in total.

 

[fatalbert]

I agree that the DT article you refer to is short of specifics, but I do understand it. The pensions mess will be simplified, and anomalies will be removed. I do share your misgivings however. The small print will probably screw everyone!

 

[Rigga]

...We will all get nothing or very little State Pension by the time we retire because we have had the fortune to supplement ourselves with additional income by way of an MOD Armed Services pension (which is also reducing in value)

It is very simple and clear, like the good minister.

 

[Doctor Cruces]

Benefits

Benefits

It was always thus. I worked in benefits for many years and it was always the can't work, won't work, totally unusable for anything but target practice who were the best off. We're the mugs.

There were so many things that had to be disregarded before we could count income it was just a joke, eg spousal maintenance, Child Benefit and many more.

The last straw for me was a woman who was working part time and earning about seventy quid a week. She was getting hundreds a month from her ex for her four kids, hundreds in Tax Credits (Child and Working), full Housing Benefit and full Council Tax benefit and megga Child Benefit. She got all this because of all the disregards from income.

I worked her true before tax income out, just for my curiosity. Over 43 grand!! And actually earned less than a hundred a week.

Most people in my department (the ones that do the work anyway) were earning much less than most of the scroungers and entitled to no benefits because "the man" made sure their wages were just above benefit level.

Outrageous!!!

 

[tubbyj]

Reduced state pension

Reduced state pension

I read an article in the news yesterday about the new state pension that starts in 2016, you now need 35 yrs of paying a full national insurance stamp to qualify, here is the kicker, while serving in the RAF your pension was contracted out, and you paid a reduced stamp, so now you need to work another 35yrs on top of your service career to get a full state pension when you retire, phoned the DWP to enquire where we stand, thinking that i could buy some extra years, not an option you can buy extra years that you have missed, but not for years that you paid a reduced amount, looks like the new pension is a direct attack on ex servicemen and their standard of living when they retire, what happened to the covenant?

 

[busby1971]

Before you get to upset don't forget you've paid a lower rate of national insurance, if you've saved this amount and invested wisely you'd be no worse off.

If you've just spent the money then there's not going to be a lot of sympathy coming your way.

Must final salary schemes contracted out their members and in the 80s/90s some people even contracted themselves out.

If you leave at 40 you've got another 28 to 30 years of employment so the impact if you're sensible will be minimal.

Sent from my XT1033 using Tapatalk

 

[tubbyj]

As we all suspected the new pension was not for our benefit, none of your years of service in the forces will now count towards your state pension, so you only need to work an extra 35yrs paying a full stamp to get a full/any old age pension.

 

[br9mp81]

a lot myself included,at work are ex HMF and now civil service,some will be looking at 40 years of pensionable service,all are in no doubt of one thing that as soon as we get to retire it will be means tested and the money spend on the feckless and those who have come to the uk as parasites.

 

[SORRY CJ]

This may help in some way....
LINK
A very P!$$ed off (with 35 years full stamp) Mr SCJ

 

[4everAD]

As we all suspected the new pension was not for our benefit, none of your years of service in the forces will now count towards your state pension, so you only need to work an extra 35yrs paying a full stamp to get a full/any old age pension.

Please clarify this as I'm confused, I always thought time in counted.

 

[4everAD]

Found this panic over: https://www.ctp.org.uk/assets/document/417241

 

[SORRY CJ]

Found this panic over: https://www.ctp.org.uk/assets/document/417241

Found this also,LINK

I think this is the old system 4everAD and not new post 2016 when it goes on 35 year contribution, which I have (with a reduction of 6 years for service bods mine will therefore be down to 29 years.... best I get a proper job now) Mr SCJ

 

[Max Reheat]

I had absolutely no idea we were paying a lower rate NI. Nobody tells you these things until it's too late.

 

[Max Reheat]

If you leave at 40 you've got another 28 to 30 years of employment so the impact if you're sensible will be minimal.

Or die at the average service leavers age of 63 which the government are probably banking on to save some cash

 

[Downsizer]

As we all suspected the new pension was not for our benefit, none of your years of service in the forces will now count towards your state pension, so you only need to work an extra 35yrs paying a full stamp to get a full/any old age pension.

Have you got a link to this? Or where did you get the info from?

 

[4everAD]

So it's not that your service doesn't count it is just reduced to reflect the fact you were contracted out. So my 30 years might be only worth 25, hopefully I'll be able to make up the extra 10 years when I leave. Even if you're on the dole doesn't your stamp get paid, or has that changed?

Also I'm confused when did I choose to opt out of serps? I had no choice or briefing on opting out, as a 17 year old no idea what the hell serps was.

 

[Flybynight]

Time was when the rules forbad individuals to have more than one pension from the state. So those with Service pensions were not eligible to draw state pensions. To counter this, it was possible to see reps from mutual (no shareholder, all profits to policy holders) insurance companies such as Colonial Mutual selling unit trust linked with profit policies in the Airmen's Mess at lunchtimes. It was possible with care to build up quite a large lump sum, which could be converted to a pension in due course.

For example, if your life was insured under 25 for £10K, you made payments until 55. If you died during that time, your next of kin received £10K (or whatever sum you had insured). If not, your sum with stock market profits was then £35K or so. You could either take it out or leave it for a further ten years but with no further payments to make. If you died before 65, your nok received £35K. If not, you got £70K at 65, which you then put in a high interest bank account and Bob's your uncle! A second pension (depending on what you'd paid in and the state of the stock market over the decades - people who lobbed their terminal grant in to the h/i bank a/c would get even more, of course).

Were I in the Service now I'm sure I'd be looking for something like this.

 

[Vauxhall]

Can I just say that Service personnel are entitled to State Pensions (currently just over £113 per week).

What has caused the confusion is the prospect of a flat rate pension. That combines the National Insurance Contribution (which we all pay but at varying rates) and contributions to the Second State Pension (which only those contracted in to the Second State Pension pay).

AFPSs are contracted out. Thus, those contracted out of the Second State Pension will have been paying into their occupational pension for a proportion of what would be the flat rate pension and would not get it twice.

 

[Flybynight]

That's all well and good but it depends on politicians keeping their word, and the next lot not changing things entirely just to show how different they are.

 

[Gord]

And to think I believed the 1st 12 yrs out of Halton being non pensionable was a rip off. You guys better ask the RN boys what it's like inside the barrel cos I think some of you might develop a severe case of hemorrhoids. Oh yeah, better buy a really large jar of Vaseline before you retire.