bigglesworth

There should be an automatic calculator available soon to work out your entitlement.

New 'flat-rate' state pension: how much will you get? - Telegraph

It is simply not true as some have suggested that all will receive the new pension.

So please everyone, contact DWP directly and doublecheck everything you are told. This is after all just as new to the people you speak to there as it is to us.

formula

Of course not, but those who have contributed to a UK state pension for 35 years (or received their contribution as they were on specific UK benefits), will not get less than that amount.

It's been done to ensure that everyone is over the income limit to get the benefit Pension Credit, as the total of your pension/s will take you over that limit. Pension Credit is a passport benefit that gives access to lots of other benefits; even if they are only entitled to 1p of Pension Credit.

They plan to stop most people getting Pension Credit if they have savings, but I assume with this new pension, they can now remove the low income part too and get rid of the benefit Pension Credit? They are already stopping those with a younger partner from claiming Pension Credit and now that partner will now have to work and keep them, instead of what happens now where the welfare state keeps them and their younger partner through Pension Credit.

Lots of concessions (taxes and with benefits for their children) are being given to those who put more in their pension pots and new pension changes for companies. Moving away it seems from, the UK will keep you in old age?

rebs

I think it a little more accurate to say that not everyone will receive the new flat rate amount.

Everyone retiring after the date in April 2016 will receive the new pension.

bigglesworth

Yes very true.
Thanks rebs

bigglesworth

Formula I think you need to wait and see on what people will receive.
I for example have contributed for well over 35 years and I was told a few months ago by DWP that I will not get the full amount. (I was contracted out of SERPS for part of the time).

As to your comments on Pension Credit I must confess I do not understand. But then I do not really know anything about it. Could you explain or provide a link or whatever?

Your last paragraph is a bit counterintuitive as all I read is increased limits on the amounts and ways people can save for their retirement. Again could I ask you to elaborate?

formula

If they have contributions in thier own name for at least 10 years

formula

That appears to be correct as I understand it too. I contracted out of SERPS too and will have a pension from that company instead of SERPS, thus reducing the new state pension. But my total pensions will be over the new state pension minimum.

Basically, most of these changes; even the new state pension; are to stop people using benefits as a lifestyle choice. And to make it fairer to those who work and who plan their finances for retirement; plus they now won't be funding a good lifestyle to those who chose not to do this.

There is lots on the internet on it. Basically, those who rolled up to old age with an income of less then 11k for a couple, got PC (even if one of the couple was below state retiement age) which then gave them access to other benefits. Even people who had a low income but lots of savings, could get another PC for some strange reason. It was unfair on those that had worked hard and contributed to a pension and often they ended up worse off than those who didn't contribute to a privatee pension/SERPS, because their pension totals meant they couldn't claim Pension Credit which would give them access to other generous benefits such as full housing benefit etc. So some PC rules will change, as I stated above.

It's no accident that the government have arrived at this new minimum amount state pension. It will save the UK money in benefits and those who worked and put in to a pension, will now be better off than those who didn't bother. The latter group will be worse off.

The state pension will be based on your own contributions and not based on what your partner paid. Those who raised children in the UK while they stayed at home and their partner worked, have their contributions paid for x years by being linked to Child Benefit payments.

For those with children, they can pay more into their pensions and then deduct that from their income to bring that down to levels to get the income based childrens benefits Child Tax Credits and Child Benefit. Plus for those parents who work, they plan a tax free amount for their childcare. Those able bodied parents who don't earn enough (a formula based on national minimum wage) to keep the family, are going to made to work for their benefits or be sanctioned.

Paying more into a pension from you salary, reduces your tax liablilty.

Companies now have to provide pensions. Before, many of the smaller ones didn't. Same as the big firms now, employees put in and employers do too so that everyone who works ends up better off in old age.

nun

For those who would only have been eligible for the old Basic State Pension, the new pension is a substantial increase in benefit even if it does require an extra 5 years of contributions.

bigglesworth

Okay formula thank you for that - I just thought you were saying a bit more. Mea culpa. Thanks for clarification.

formula

But a massive loss in all the other benefits they could have claimed if they didn't contribute to a private pension or SERPs

nun

Yes cuts in other benefits could well negate the increased pension, but that's getting into a larger argument. Allowing carers and people working in the home to get NI credits is a big improvement, but that's also off set by the increase in the pension age, although I find it hard to argue with that given increased life expectancy.

For UK expats with lots of Class 2 NICs and, no complications of SERP, the new pension rate is a big added benefit.

formula

Yes, it has now been pointed out to them that under their present plans, class 2 NICs will be better off; and that the government lose more money and more importantly (to them) they will risk upsetting the resident voters. There is still time to change things before 2016.

nun

True, but changes to what you get for Class 2 NICs will impact the self employed and small businesses, the expat Class 2 NIC payers are very few indeed, and I think those constituents will have a lot more to say about any changes. As a British expat with no vote in UK elections I can't do much to influence any legislation and so I'll just have to accept it. Right now I'm a lot better off......I might end up worse off.....I won't worry about it because I can't do anything about it.

rebs

Some people can now get a pension forecast which shows how much they will get under both the existing system and the new system.

Now everyone can get a forecast based on the new system yet - just those that will reach state retirement age fairly soon after the change date - April 2016. I think that equates to people who have a date of birth some time in 1955.

I also heard on the news that each month the dob eligible for a forecast will shift (can't find a link to confirm that).

There's a thread on MSE which is talking about it, and I daresay more will pop up as people get their forecasts.

Pension forecast April 2016 - MoneySavingExpert.com Forums

Anyone here got a new forecast?

Editha

Formula, I object to the tone of your contribution. Whether or not someone has an adequate pension on retirement depends on a large number of factors, not just whether they 'could be bothered' to save, or 'choosing benefits as a lifestyle choice'. Factors such as their income during their working years, time lost because of ill health, unemployment or caring responsibilities, and whether their employer ran a pension scheme are going to be much more important.

Let's try to give useful information on this forum without stigmatising the less well off who might seek advice here.