Jaxbar

As the government are talking about giving everyone a minimum amount, I wonder if we would be able to get full pension without full credits? I also see that there may be a residency requirement so I guess it will depend on what that will be.

http://www.bbc.co.uk/news/uk-politics-11618019

lansbury

What I have read elsewhere indicates that as you say in order to get the pension you will have to be resident in the UK. So good for expats not if that does apply.


http://www.independent.co.uk/news/uk...k-2115869.html

The new system would probably be based on residency in Britain and not on National Insurance contributions.

Bink

I'll be honest, I've given up on State pension. I'm 28 and figure by the time I retire, it probably won't exist or I'll have to work until I'm 70, or won't have paid in enough due to living out the country.

On this basis, I pay into private pensions and save instead. I opted out of the second state pension when I was working in the UK for the above reason.

Jaxbar

Well I paid a year back last year to catch up so will be pissed if I am not entitled to anything, I dont think I will bother paying any more!, but who knows what the future holds...

Giantaxe

I agree. This is the major reason why I was never interested in making voluntary NI contributions once I'd left the UK:- you simply have no guarantee that the government won't change the rules down the road.

As far as expats go, I did find this (from the Daily Mail, so who knows whether it's accurate...):

"The payment would be based on citizenship or residency, with British citizens or anyone who has been living in Britain for a fixed number of years qualifying."

Bink

I hear ya...!

I just know that I wouldn't be happy living on just the state pension and so have made other plans to cover my retirement costs. If I get anything from the state, I'll see it as a bonus.

Sally Redux

It sounds incredible, how are they going to pay for it?

Will keep the pensioners voting Tory, I guess.

lansbury

The money they will save by not means testing the pension and everyone getting the same will cover the extra cost. At the moment there are several top ups you get if your income is below certain levels. Cutting all the bureaucracy out that administrates that is where the money comes from.

Of course those with just a State pension and getting about £156 at week at the moment will be worse off. Those with private pensions and getting the basic State pension of about £97 are going to be quids in.

More about how it would be funded here

http://blogs.telegraph.co.uk/finance...on-of-savings/

Jerseygirl

That's how I read it too.

Jaxbar

Yes but how much residency? Stuff I read seemed to be saying a certain amount of years.

Giantaxe

I doubt this proposal's worked through enough for some of these details to be known definitely. Additionally, I wonder what impact it'll have on things like the UK/UK Social Security agreement.

Jerseygirl

OK I must have missed that bit.

Seneca21

Agreed. My view is that there will be no retirement age in another generation's time anyway, so therefore no pension.

Giantaxe

Strictly speaking, there's no retirement age in the US now, just an age you get your full entitlement to your social security. You can choose whether to take it earlier or later for a larger monthly payment. I think this is a better way of doing it than in the UK, as it reduces the mindset that you are "retired" when reaching a specific age.

Seneca21

Right yeah. I think they will phase in something like this first to ease the shock of going back to the 19th century and having no pension. Back then you had to save through your life or have lots of kids to support you in your old age. There is some evidence that big pensions are partly responsible for the drop in the birth rate actually - I think they studied somewherelike Brazil that brough in pensions more recently and not long after people started having less kids. Fewer kids, Lewis.

Either way, I know the difference between Rod, Jane and Freddy and I know there is little chance of there being a pension or retirement age when I am old and tired. Plan for this now, etc.