UKC

I know this won't be of any interest to the nippers on here so I'm really hoping for a response from the UKC Old Farts. I have used today's monetary values throughout.

The government intend to bring in a "flat rate" pension of £142pw in 2017 which will be paid to those qualifying for a state pension from 2017 onwards. However, anyone already on a state pension of £107, will apparently continue to receive that amount; thus meaning that one group of pensioners will receive £142 whilst older ones will only receive £107. Is my interpretation correct?

In reply to mypyrex: Isn't there currently a means tested second pension that tops up the basic £107 which if you qualify, tops you up to £142.70?

More info here:
http://www.bbc.co.uk/news/business-11619379

In reply to mypyrex:

Do you really turn to UKC for every trivial question, rather than just use Google? I mean it's understandable if it's a question that would benefit from the input from a community you know, but for simple facts do you not think you'd be better with Google? You'll probably also get a more reliable answer.

PS

http://www.telegraph.co.uk/finance/personalfinance/pensions/9802093/Flat-ra...

(First link on Google for "new flat rate pensions")

In reply to EeeByGum:
Maybe but it seems to me to be unfair that those reaching pension age in 2017 will get £142 regardless of their means but those already on a pension still only get £107

In reply to Philip:
Do you really assume that I don't make enquiries elsewhere? I am in fact awaiting a response from Age UK but since I know that there are SOME on here who might have an interest in such matters then that is why I ALSO posted it on here.

In reply to mypyrex: I don't know much about this, but felt compelled to reply only on the basis that I have feel included as I'm an Old Fart.

However, I did hear Mrs JC moan that she had been paying an additional amount after taking time off for the kids to get a better pention,but her friend in the same position , did not, and 'apparently', they will now both get the same !

Not sure if she IS right, but it has put her in a right mood thinking of all the handbags; shoes; dresses etc that her mate has bought by not paying it, and she did not get, as she has paid that extra money for so many years, and now she will be no better off.

In reply to mypyrex: No because throughout their time of working (or not) there was a 2 tier system in place where if you contributed you got a better pension.

In reply to Jim C: Pretty sure the extra is likely to have been in the area of £10 a month. (happy to be corrected if i'm wildly off)

In reply to mypyrex: It might seem so, but this is probably one of the few examples where after a change it might be beneficial to be a younger/new pensioner. Times have to change, and normally not for the better....like the end of all the fantastic (but unaffordable) final salary schemes around. I wont mention civil service pensions so as to avoid getting blasted! I assume the thinking is that a flat rate pension is easier (cheaper) to administer????

In reply to mypyrex:

We will be paying extra NI for the priveledge. I am currently paying in to an occupational pension, so don't pay the top up, I will have to pay the extra NI in future.

In reply to Philip:

What compels you to respond, furthermore what compels you to respond in such a fashion. If it's a waste of your time why spend more time replying?

In reply to mypyrex: Don't know, but I suspect the raising of the pension will mean that pension credit will be removed, as others have said. Which I suspect means that many people just receiving the state pension will no longer be entitled to a whole load of benefits that are triggered by pension credit.

But I'm sure the govt didn't have that in mind...

In reply to mypyrex:

I'm just thankful I "contracted out" pretty much as soon as I started work.

My NI Rebates are doing nicely in my SIPP.

Why would anyone opt for a vague promise of a bit extra in 40 years time rather than cold hard cash NOW is beyond me.

I trust the government about as far as I could throw Eric Pickles!