New State Pension Rates

[Laslomas]

I have just been reading of the proposals for a larger, simpler, UK State pension. This would give everyone a suggested figure of 140 GBP weekly and do away with Pension Credits. The easier to deal with system would save so much on beaurocracy that it would be cheaper for the government - but it would be based on UK residency.
See: http://www.dailymail.co.uk/news/article ... ke-up.html

[Campo Steve]

Laslomas. You say it will be based on UK residency. I am sure that there are a lot of people that will be worried about that, having moved overseas after paying into the system for 30+ years. As things stand they would still get their pension but you seem to suggest that would no longer be the case..

Fortunately, if you read the article to which you provided a link, you will see that it says:

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.

Hopefully that should allay some of the fears.

[janda_grant2]

Justread the article, but am a bit confused about the abolition of SERPS - does that mean that we will lose the current level of serps and gpc that OH currently gets, or is that a future withdrawl? If we lost it, the new rate would mean a cut for us!

[El Cid]

It's just the usual Daily Mail speculation on the basis of little or no information.

The government have yet to propose any concrete details and it probably wont come in much before 2015.

Sid

[Lyric]

I opted out of SERPS several decades ago, but my wife paid into the scheme all her working life. Is the scheme still available, by this I mean could I join now if I qualified ?
I assume any change would be a long term thing and not affect those receiving or about to receive. (I know never assume)

[Mowser]

If it's not the Daily Heil, it's the Torygraph.

[Campo Steve]

It's just the usual Daily Mail speculation on the basis of little or no information.

The government have yet to propose any concrete details and it probably wont come in much before 2015.

Sid

According tp Vince Cable on the BBC, proposals should be published by the end of the year.

[El Cid]

According tp Vince Cable on the BBC, proposals should be published by the end of the year.

Yes, it said that in the DM article.

Sid

[Laslomas]

Sorry (Campo Steve) - I did not mean to suggest anything, I simply posted a link to what I thought was an interesting article. I am sure anyone paying into UK system for the now necessary 30 years, will be OK. But how it will affect others is not explained. But the reference to residency must be part of the plan. Surely it is about time pensioners got a decent payout. Also I am sure it is not just The Daily Mail, but probably in all papers. I only read a few 'on-line'. http://blogs.telegraph.co.uk/finance/ia ... f-savings/
http://www.thesun.co.uk/sol/homepage/ne ... r-all.html
I thought it was good!?!?! I was not posting for any other reason, all pensioners deserve more. But until it is all explained, who knows??

[Campo Steve]

Quite agree Laslomas. We'll just have to wait and see.

It will be interesting to see how they deal with expats. In my case, I took early retirement with a reduced works pension being paid now. That pension is then enhanced, but will be reduced by the amount of the state pension when I hit 65 and state pension starts paying. The alternative would have been a lower pension now which would increase when state pension starts. Sounds complicated but just means I get more now with no noticeable change when I hit 65 (actually it will now be 66). These changes to pensions could make it complicated.

[gerryh]

According to Vince Cable on the BBC, proposals should be published by the end of the year.

Forgive me if I'm wrong but these will only be the proposals.
Implementation, if agreed, could be several more years away.
Did I miss hear it when the government said the retirement age would rise from 65 to 66 by the year 2020?
If it takes 10 years to implement a fairly simple change then who knows how long it will take to implement a more complex change.

Cheers
Gerry

[Enrique]

Hi gerryh,

From the site....................

http://www.direct.gov.uk/en/Pensionsand ... /DG_069498

"Changes to the State Pension age

The State Pension age is changing for most people - this is the age when people can choose to start getting their State Pension. The government is reviewing the current timetable for increasing the State Pension age from 65 to 66. No decision has yet been made as to how the timetable will change. Any change will require the approval of Parliament."

[Jool]

Would it not be against EU rules if UK citizens entitled to a british state pension were paid less if they lived elsewhere in the EU but were still UK and EU citizens?

[curatokid]

Maybe the residency bit refers to the length of time an immigrant has been in the country before they will qualify for some type of pension rather than the number of years contributions have been made.

[El Cid]

According to a report in the DM today, the proposed increases will not apply to existing pensioners.

http://www.dailymail.co.uk/news/article ... -week.html

Sid

[Jool]

Unbelievably unfair..........either you do away with the tiers of bureaucracy and save money or you don´t, this seems to say it will simply be more expensive to fund and not pay for itself with reductions in bureaucratic costs.....and pensioners will be further discriminated against according to when you retired........all very odd and ill thought out

[rafiki]

... ill thought out

Politicians don't think, they can only react!