rebs

yep! with added complexity for the transition period...

I guess in about 40 years time, when the youngsters that will be starting work post April 2016 are coming up to retirement, things might just be a bit simpler....

formula

Typo, I meant 35 of course. In my defence, it was the early hours of the morning when I posted.




That's what contributions are in the UK: working or voluntary. We use to call them a "stamp".


I'll read the lasted guidelines over the weekend, although I'm sure we will see them change again. I have had 3 letters about my pension age over the last few years and each one changed the previous letter and was a greater loss for the pensioner. A few more years and it will be age 70 for a state pension.

At age 68 for a state pension at the moment, some will die before they claim. Under the new rules, their partner will not benefit from their state pension that they never claimed either. That's two savings there for the welfare state.

formula

That they keep changing; just like the last system

When they changed from 39/44 to 30 years, some missed the cutoff and couldn't have a full state pension as they didn't have 39/44. Those born a few days later got a full pension if they had less than 39/44 but had at least 30 years as they came under the new rules; which then changed again.

The best plan is not to rely on a state pension, then you won't be dissapointed

robin1234

Probably this has been covered earlier in the thread or in another thread, so apologies for that.

I will reach British state pension age in August 2015, my 65th birthday. Does that mean (in relation to the new system coming in in 2016) that on the one hand, I only need 30 years to get the full pension, but on the other hand, the full pension for me and my peers is lower?

rebs

Yes, that is correct

durham_lad

I think I heard that you can buy extra credits to make up the difference.

rebs

Yes, you can make up contributions... but I don't think you can change the fact that if you start collecting your pension before April 2016, you will be on the current system not the new, single tier system.

I'm not too sure if deferring receipt of your pension until after April 2016 (even if eligible earlier) would put you into the new system.

durham_lad

I can't find any articles, maybe as it is not law yet, but I remember an episode of Money Box where they were discussing this with the pensions minister and there is a scheme proposed for the folks about to retire under the old system.

If I were turning 65 in the next year or 2 I would delay if I didn't need the money until the law becomes clear.

durham_lad

This discusses the proposal for buying more credits for existing pensioners.

http://www.thisismoney.co.uk/money/p...e-pension.html

rebs

I just looked again at the fact sheet I linked to earlier - https://www.gov.uk/government/upload...fact-sheet.pdf

and that states that it is the date that you reach pension eligibility that determines if you are on the new single tier pension or not - deferring wont make any difference.

rebs

Thanks for that - not seen that before

Hopefully, it will get a bit more publicity once the details are announced.

durham_lad

Good spot, I see that.

Yep, keep monitoring, and hoping.

robin1234

Thanks, both, for your information on this topic. Seems complicated, moving from one system to the other, and presumably (as good public policy) trying to iron out anomalies that could be seen as unfair to one age group or another.

My situation is that I started paying Class 2 NICs about three or four years ago, but I obviously should have started earlier as I currently have 27 years altogether, I believe, but I'm 63 years old. (I had 19 years of stamps as a result of working up to 1991.)

z1565124

I'm almost thinking this might be the safest option. I think if I can pay class 2 I will do it, if not then I won't bother and just use my own funds to finance my retirement.

nun

I would not want state pension as my only retirement income, but you'd be a fool not to pay Class 2 NICs as they are such good value for money.

IMHO a state pension is still a vital component of retirement income. It provides steady, inflation linked income and its a nice complement to any other retirement funds you have.