Universal £140 Old age pension

[Trevbet]

How will this effect pensioners where currently a state pension is made up as follows:

50% Basic Pension
50% Pre 97 Additional State Pension ie serps.

[sunny-dave]

Won't affect anyone who reaches pension age before 2015/2016 - only 'new' pensioners.

They haven't said whether the serps will still be additional to the £140 or whether (as usual) those of us who have paid in extra will just get the same as those who haven't.

[rowanwitch]

Don't tell Ed...

[LoftyLottie]

It is entirely unfair in my opinion if they don't add serps on to those of us who currently have a State Pension plus Serps.

[Psybbo]

I currently have a pension with a small amount of SERPS

[sunny-dave]

... I agree entirely Lottie - it's also deeply unfair if they have a 'cliff edge' where those born even one day before some arbitrary date don't qualify for the new rate.

[craft1948]

As far as I'm aware the £140 will be for the new pensioners, and not include existing pensioners.

[LoftyLottie]

My additional Serps etc. forms 1/3 of my pension and Mr LL's is almost 50%.

I assume that our Pension will remain as it is now with the annual percentage increases. They can hardly take it down to the £140 and not add Serps.

Will the new pensioners getting £140.00 get Serps as well.

I am confused!!

[sunny-dave]

So you get stuffed twice crafty - too young for the extra tax allowance and too old for the £140 ?

That *really* isn't right/fair at all :+(

[craft1948]

Too true Dave...............not that I'm bitter.

[Graham-W]

Pension changes for people reaching 65 in 2015/2016.
August 2014 for me. I'll lose out to the tune of ~£35 per week, ~£1,800pa, and if I manage to survive 'til I'm 80 that's £27,000.
As Craft says, not that I'm bitter or anything!

[LoftyLottie]

Do they actually really think these things out!!

[sunny-dave]

Nope - to them £140 per week is just not that important :+(

[factor-fiction]

I think there is some speculation/misinformation on this topic. I'd be grateful if anyone could provide a link to an authoritative source of information on these 2015/2106 increases to the basic state pension ( and consequent adjustments to pension credit/SERPS).

Hi Graham-W. In what way will you lose out to the tune of £35 pw- do you mean your planned pension will fall or just that you won't benefit from an increase which those retiring after you may get. Those retiring later could argue they have to wait longer before they are eligible

It would be nice if all pensioners get the same pension arrangements but I don't think it's practical, and given that some have already benefited from getting pensioners earlier than those yet to retire.

[craft1948]

yes factor, and we've also paid a damn sight more NI contributions.

[shaneystar2]

It's all far too complicated .By the time all these things are implimented there will be another general election and whoever gets in will just move the goalposts yet again .I'll probably be dead by the time they sort it out .

[factor-fiction]

That's one of the problems governments have isn't it, craft. Any change upsets someone.

They reduced the NI contribution requirement to something like 30 years (partly to help married women who previously didn't qualify for a full pension), and existing pensioners are upset thay they'd had to contribute for 44 years.


On the other hand existing pensioners were able to retire at 60/65, so those having to wait until 67 in future are upset.

I'd like to know what fair system anyone could suggest which would satisfy both existing and new pensioners and also be affordable.

If instead the government had retained or increased the number of years' NI credits needed going forwards, prospective pensioners would have complained that the goal posts had been moved as the pension age was going up.

[whiskeryron]

Just curious, does a retiring OAP MP get the same pension as us non-entities ?

W Ron.

[factor-fiction]

They will get the same state pension.
Their private pension arrangements are extremely generous though

[buildersmate]

Factor (and others). As far as I can see it is an Almighty con.
If SERPS and the 2nd State pension gets eliminated because it argued it is is 'rolled into' an enhanced basic state pension, everyone who was in a company pension scheme or a private pension still gets the enhanced basic pension but they also get the full value of the company / private pension.
Those that played true to remained in the State system, get the enhanced basic pension but no State pension benefit from all the extra NI they and their employer shovelled in.
If I've understood those details right, they is going to be an Almighty stink over this.

[factor-fiction]

I read that the intention is that those with SERPS benefits in excess of the new state pension figure would still get them, but at the moment I don't think any details have been finalised so it may be too early to start jumping to conclusions.
However I agree that there will be winners and those that see themselves as losers