Re: The Plans for the Pension.

I reach retirement age in 2015, so I should get the basic pension (Opted out). Fortunately I will have 2 occupational pensions that far exceed the state pension.

My wife doesn't reach retirement age till 2018 (thanks a bunch Cameron - NOT) so should get the new rate.... BUT.... They're upping the number of qualifying years. Dianne has enough at present for a full pension, but not enough for the new one, so presumably she'll get a pro rate pension.
At least she gets an occupational pension in 2015.

No matter what this lot do - they'll screw it up and just about everyone will be worse off in the long run. And of course, there will be a new government following the next election - I wonder what they'll do?

Re: The Plans for the Pension.

Everyone should pay into a private pension scheme so that the state pension is a top up. I have 5 schemes and will be able to live on them so the state pension when I get it in 6 years time will be a bonus. Living purely on the state pension is not viable in this day and age with people living longer. My parents both lived into their 90s and that is the general trend if you remain healthy. The state scheme can no longer cope with that.

Re: The Plans for the Pension.

So, what is the "second pension" and 'pension credits'???

Re: The Plans for the Pension.

I generally agree with you Dog Lover. I also think that retired people have much higher expectations now. No more spending your days digging the alotment, playing the odd game of bowls and growing old gracefully. For many, it's off on travels to far flung places and trying new experiences.
This costs money.

Re: The Plans for the Pension.

I believe these were means tested amounts paid if you qualified on top of the basic state pension.

Re: The Plans for the Pension.

Thank you for that info.

Re: The Plans for the Pension.

The ONLY good thing about paying into a private pension is the tax relief you get on contributions. But the rules are already changing on this. If you dont pay 40% tax rate then you probably dont have enough spare cash for a private pension or at least enough that will make any real difference in retirement.

The 25% tax-free lump sum is also good. But that could also go at any time. I will take mine as soon as I can get it.

Private Pensions are the last big financial rip-off scandal. A £100,000 pension pot gets you about £3,600 a year today. What with QE, insurance comapny charges etc the person paying in is the last to see any benefit. They are even making the providers lOWER people's expectations.

Much better to save in an ISA. At least you get to keep ALL the money and the rules cannot be changed.

Re the state pension changes, I am all for it. I contracted out so get no SS2 anyway, so for me it is cash in the bank! BUT..... instead of 30 years it is now 35 years so I will probably have to pay in six years worth of NI contributions to qualify when (or if) I make it to 66.

And that's another thing the age you get it has been raised for everyone too so are we better off, they wouldn't do it if it made people better off.

Finally if they are changing the amount and the rules it should be on a given day and every pensioner should get the same, not just new pensioners after 2017!

Re: The Plans for the Pension.

And another thing Phil, most private pensions die with you, they don't transfer to your wife.

Re: The Plans for the Pension.

Elbee, you, like my wife, will probably get a pro rate pension if you don't have qualifying 35 years. You would probably find that you would have to pay in more than the extra that you would receive to get a full pension, so not worth doing it.

Wrinkly, do private pensions die with you? I know that company pensions usually pay 1/2 pension to the surviving spouse - and possibly a death grant too.

As for the Second pension, this was paid if you made additional NI contributions during your working life. I don't think this was means tested.
I've never understood 'pension credits'.

Re: The Plans for the Pension.

I don't get my state pension until 2016 but I retired early and was able to claim on my small private pension in 2011. I only paid in £50 a month for about ten years back in the eighties then gave up on it as I couldn't spare the cash, but as it turns out it was a pretty good investment as it guaranteed a minimum payout of 9.5% of the accrued pension pot at my retirement date, which is around three times higher than anything on offer at the moment. So for a small investment of around £6000 and twenty years growth I now get £320 a month until I die but guaranteed for minimum of ten years if I die earlier. I've obviously got no complaints, but it's a shame they don't give deals like that any longer....