New Pension Scheme

[Robtel]

I've read that details of the proposed new state pension scheme are going to be released this coming week. Suggestions are that everyone will get the same rate of approx. £155 per week, going to start in around 2015/16.The only problem that I see is that the "everyone will get the same" only applies to those who reach retirement age after the new system comes in. Anyone who is retired now or even a month before the new system comes in will be stuck with their current state pension level. Surely that can't be right! means we will have two different levels of pensioners - the "old" pensioners on the old system and the "new" better off pensioners. Must be age discrimination there at least.
Anyone else due to be effected by this? Any thoughts on it?
Personally I feel it is extremely unfair and think that at some point common sense will prevail but then I remember it is the government who are dealing with this so what has common sense got to do with it.
Robert

 

[colin-yorkshire1]

Hi Robert,
yes it does seem unfair on the face of it but at least it's a start and either way I will be better off for it,
at my age I could either get the old rate or the new one depends on its inception date as I will be borderline around that time.
however either will be of benefit as I dont get anything at the moment too young to get pension too old to work full time, cannot get JSA or benifits because I am not seeking work and have too much in savings to apply for means tested income support.
since voluntary retirement 2 years ago the wife and I have had to live on one small company pension her incapcity allowance and the saving generated from the sale of my mums house, apart from free pescriptions and a buss pass also pay full whack for everything.
it is a struggle though and I have thought of getting a job part time to tied us over
but who knows by then there may have been a test case somewhere under the discrimination laws. that is if the tories have not abolished them all along with everything else.
either way any state pension will be a relief just hope the saving last long enough to get it,
colin

 

[JonnyG]

Maybe i am miss understanding this, but if everyone is going to get £155 a week state pension in 2015/6 or whenever, then surely it will be illegal to give somebody who retired in 2013 or2014, less than that rate also?

 

[Robtel]

Maybe i am miss understanding this, but if everyone is going to get £155 a week state pension in 2015/6 or whenever, then surely it will be illegal to give somebody who retired in 2013 or2014, less than that rate also?

That was my first thought as well, thought I must have picked up the tv report wrong perhaps but I did a couple of google searches and that seems to be the way it will work - the proposed new rate will only apply to those who retire after it comes in to force.

Colin-yorkshire, you must be in the same age bracket as myself. I may or may not be eligible for the new scheme just depending on when it actually comes into force.Whether or not I get the new rate I think it is unfair to pay one person one rate and another less, just depending on their date of birth.

 

[Surfer]

Maybe i am miss understanding this, but if everyone is going to get £155 a week state pension in 2015/6 or whenever, then surely it will be illegal to give somebody who retired in 2013 or2014, less than that rate also?

That was my first thought as well, thought I must have picked up the tv report wrong perhaps but I did a couple of google searches and that seems to be the way it will work - the proposed new rate will only apply to those who retire after it comes in to force.

Colin-yorkshire, you must be in the same age bracket as myself. I may or may not be eligible for the new scheme just depending on when it actually comes into force.Whether or not I get the new rate I think it is unfair to pay one person one rate and another less, just depending on their date of birth.

Never mind by that time a Labour government will be in power and dip into the bottomless pot and increase pensions for all people including foreigners!

 

[JonnyG]

"Never mind by that time a Labour government will be in power and dip into the bottomless pot and increase pensions for all people including foreigners!

"

Strange response surfer. have you been away from this country for the last 6 decades?
To get a full entitlement to the state pension system, you need to pay 40 odd years of stamps! That includes , so called Foreigners!
So nothing for a future Labour government to change then, is there!

 

[Philspadders]

if you had not paid your full stamp ( which is actually payong pensioners now and not going into a pension plan for your future) you can get pension credits....... not to the full pension level but pretty close. And if you get PC you can claim Housing Benefits and a few others.

 

[Lord Braykewynde]

I'm one of the newly retired on a state pension and yes, the new payment of £155 will only apply to those who retire after it as come into force.
The idea is so they can scrap the pension credits that some are entitled to so what will happen to these people after this date? Do these people lose their credits and have to survive on the basic £97 whereas at the moment they can, if entitled, get up to £132?
I think if this is challenged the government will scrap it.
Whether you are retired or not you have to say that it's a bit harsh on those who have paid all their lives to be getting less than those who have paid in the same amount.
I'm not going to let it worry me though because there are far more important things to worry about like the price of fuel, gas, electric and the continuing drain on the public purse to keep the overbloated E.U. going with it's failed monetary system.
The sooner we are out the better.

 

[joeby]

George wrote:
"Hi Joe, Petrol is sold in gallons (4 litres) and costs $2.20 per gallon for super or $0.55 per litre. This is roughly about 30 pence. The government petrol stations sell it cheaper at $2.00 per gallon. Regular petrol is less than $1.50 per gallon or just under a pound. Diesel is $1.05 per gallon about 60 pence. A lot different from the £1.35 per litre in UK I paid a couple of weeks ago
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a friend of mine who lives in Ecuador sent me this email about fuel prices there , so if a poor country like Ecuador can sell fuel at that price why cant a rich country like ours beat there price ,

 

[forestgump]

£155 thats a full tank off derv then at the presant rate.

 

[JonnyG]

because in places like Bolivia, Ecuador, and indeed a fair few other poorer countries, the Government is subsidising them.
If we did the same over here, we would be poorer than the likes of Bolivia and Ecuador.

 

[Lord Braykewynde]

if a poor country like Ecuador can sell fuel at that price why cant a rich country like ours beat there price ,

The answer is simple joby. We are a rich country because we are taxed heavily from the cradle to the grave. The problem is our taxes are going towards paying towards the forthcoming Federal States of Europe, unelected EU Eurocrats, bailing out Eurozone countries, waging wars in countries we should never be involved in and generously dishing out International aid to countries run by despots.
To take advantage of our system you need to be either a banker, Eurocrat, human rights lawyer, work idle or a person in the image of Robert Mugabwe

Thankfully this government has now ended giving aid to Russia and China

but unfortunately we still send aid to India, a nuclear country with it's own space programme

It's a mad stupid world and the U.K. fits into it admirably. Somewhere at the top of the leader board I would think.

Patrick O'Flynn for Prime Minister and Leo McKinstry for Foreign Minister. They'll soon sort the country out joby

 

[joeby]

because in places like Bolivia, Ecuador, and indeed a fair few other poorer countries, the Government is subsidising them.
If we did the same over here, we would be poorer than the likes of Bolivia and Ecuador.
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Very well said LB , but in response to the above ,from JohnnyG saying if we did the same we would be poorer , my mate lives like a king over there on his pensions far better than he could live here , so how is he poorer

 

[colin-yorkshire1]

because in places like Bolivia, Ecuador, and indeed a fair few other poorer countries, the Government is subsidising them.
If we did the same over here, we would be poorer than the likes of Bolivia and Ecuador.
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Very well said LB , but in response to the above ,from JohnnyG saying if we did the same we would be poorer , my mate lives like a king over there on his pensions far better than he could live here , so how is he poorer

AH that would be because the pension gained over here is worth a fortune over there but not visa versa probably why the better off pensioners disappear over to portugal and spain for a bit of late in life sun.
IE there ain't many portugees pensioners living over here in retirement..

 

[TrevorM]

From what I have heard via the media it does seem the proposal would cause any pensioner (at the time of the change) who has been sensible enough to plan for their retirement to be significantly disadvantaged. My own feeling is that if this goes through it will be a 'clanger' of the same proportions as Labour's 10p tax rate fiasco.
For example: a couple retiring before the change and not entitled to additional benefits would get the £156 per week approx. based on one person's full NI contributions; A similar couple after the change would receive £140 (£155?) each, ie. £280 (£310?). per week. A difference of between £6448 and £8008 per year depending on which figure is used.
I must admit to feeling a bit persecuted with the combination of this and the linking of my occupational pension to CPI rather than RPI which I have heard will on average reduce one's total pension by 15%.
For what it is worth, I shall be writing to my MP; if you will be similarly affected I suggest you do the same.
Having said all that, I do think it is preferable to to provide an adequate pension for all, without the complex means testing system we have at present.
Rant over!
Enjoy your hols.
Trevor M.

 

[Surfer]

It is very difficult to find an article that explains the changes clearly as one article seems to contradict another. Do you have a link to an article that explaisn it clearly?
We will both go onto state pension in 2014, but probably do not qualify for the full amount and will need topping up although we both have small occupational pensions. I am under the impresson that at the moment the minimum government payment guideline for a couple to live on is £202 per week. The state pension is then reduced by any occupational pension payments made. So if your occupational pension is £12 per week the state pension is reduced by that amount.
We have been advised by a financial adviser that when our occupational pensions are due we are better off taking a lump sum than spreading it out over the years.

 

[colin-yorkshire1]

We have been advised by a financial adviser that when our occupational pensions are due we are better off taking a lump sum than spreading it out over the years.

Thats fine if you don't mind taking a hit with the total value of the accumilated pension it was 10year ago I was made redundant and qualified for a company pension being just over 50, I had 3 options leave it alone frozen untill retirement, take part or all of it as a lump sum and the rest at a reduced rate for life (option I took), or just take the pension at the full rate reduced by the number of years left in relation to the age I was at leaving.
the difference in total monetary value between the 3 options based on a life span of 75years (the age of my father on death) was staggering a difference of £50,000 for the same pension plan. the cheapest option for them was to cash it in immeadiatly reducing the total cash value down to 30% of it's worth.

 

[joeby]

colin-yorkshire
AH that would be because the pension gained over here is worth a fortune over there but not visa versa probably why the better off pensioners disappear over to portugal and spain for a bit of late in life sun.
IE there ain't many portugees pensioners living over here in retirement..
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i dont know about the Portugees , but there seems to be a lot of othere people arriving here , some are living in houses in London worth over a million and they seem to be retired in there 30s , they are living a lot better than me , i left school at 15 and i am still doing the odd job at 65

 

[SpudDog57]

Your Pommy politicians are just as big a bunch of useless dogooders as our Aussie ones. No prob's finding money for expenses or fact finding trips or fat pay rises for themselves. Your lot are also pretty good at funding any stray dogs that pitch up on your shores much like the soft pc brigade back home.
If anyone in the UK, Oz or anywhere else thinks your politicians are going to fund fine living pensions for your old age have a look for the gold pavements around your capital city. The only way you'll do well as a pensioner is if you save money yourself, win the Lotto or make it to the rich elite league.
We just saved when we were young.

 

[Essexeddie]

Well said Spud!
You've done the same as us.