Older Pensioners .

[gulliver1]

Around 10. million older pensioners will receive £226 less p/a from their state pensions,under the triple lock system. While new retirees will see an increase of £972 a year. Doesn't seem very fair to me .
Or is this conservatism .Get rid of the old ones first.

[bobbinwales]

Might be worth a link for this one as it sounds to odd to be true even for this goverment

[barry1010]

It's true https://www.telegraph.co.uk/pensions-retirement/news/older-pensioners-receive-226-less-triple-lock-boost/

[FatticusInch]

I fear for all pensioners this winter, 10ClarionSt sounded genuinely scared on here the other day.
When winter bites it’s going to be a disaster.

[bhg481]

I think that contributions were changed some years ago so that pensions could be increased. Old people, like me, had paid NI at a lower rate; younger people were charged more NI and given a bigger pension in return. I can't remember the details exactly.

[bobbinwales]

so there not getting a cut in there pension of £226 which is what gulliver says, there just getting less than some others. MAybe we should reduce the pensions for new retirees .... would that be fairrer??

[MargoTester]

https://www.express.co.uk/finance/personalfinance/1586874/old-state-pension-new-state-pension-pensioners-triple-lock-retirement-income-unfair

[bobbinwales]

its not comparing like with like though... those older pensioners had elements of SERPS additional pension which they still get but newer ones dont. Bottom line is pensions are going up by around 10% which is alot more than most workers like me are getting, not that I mind them getting it and i'll get the new one eventually (unless it changes again!)

[New Judge]

The new state pension is higher than the old state pension. There are many reasons for this and it is far too complex to go into here, but sufficient to say that the State "pension" scheme is nothing of the sort. It is a way of providing benefits to older people, some who have fully funded those payments and many who have not - again a topic outside the scope of this question (but one on which I hold quite strong views).

So, if you're given a 10% rise on payments of £7,000 pa you will receive less of an increase than someone who is given a 10% increase on £8,000 pa. It's as simple as that and not news, just arithmetic.

[Gizmonster]

The problem here is not the actual increase, but the difference between the two initial pensions.
Both pensions are being increased by 10.1%, which is fair.
It's a bit like comparing two workers, one earning 20k and one earning earning 30k. If you give them both a 10% increase (which is fair), the lower paid worker will receive a 2k increase; whilst the higher paid worker will receive a 3k increase. It may seem unfair, but the percentage difference between their salaries remains the same - the higher paid worker still earns 50% more than the lower paid worker and this will be the case for the pensions.
Wrongly or rightly, as already mentioned, pensions were reformed in 2016 and there now appears to be a disparity between the different rates.

[bobbinwales]

^ Agreed.
And for gulliver to say "older pensioners will receive £226 less p/a from their state pensions,under the triple lock system" is either acomplete missunderstanding or missleading... there not gettting 226 less there actually getting a RISE of £764... and thats just the basicpension before any pension credits or SERPS extra pension.
Complex business

[Togo]

In 2016 the "flat rate" pension changes were introduced to take into account the higher rates that were being paid into the scheme by the younger contributors. The triple lock guarantee was introduced in 2010 by the Conservative/Liberal coalition that ensured that state pension payouts stayed in line with inflation. As of now the retired who qualify for the newer flat rate pension receive a higher basic rate than the legacy recipients of the old basic rate. This means that the older pensions will attract an increase of £746 in the coming months and the newer pensions will get an increase of £972. The Spanish pensioners are getting no increase and some couples in the UK are to get the increase twice over(me and "she who must be obeyed for instance) :))

[Deskdiary]

I also hold strong views.

If it was a pension the more you put in the more you'd get out. It is absurd that somebody could pay in £500k and receive the same as somebody who paid in £10k.

[gulliver1]

Will the older pensioner vote Tory this time around,and seal their own fate. Don't think they will.

[gulliver1]

Spin it as much as you like Bobinwales. It will still come up with the same answer.

[bobbinwales]

Ha gulliver, your a one. They get £ 746 more but you say theyll get 226 less. I can see whose doing the spinning

[bhg481]

A simple question Gully; If you paid more into a pension scheme than me would you expect to get the same pension or a bigger one?

[davebro]

It's iniquitous - the older pensioners have had no route by which to achieve the higher rate. As it's classed as a benefit not a pension it should be equalised. But hey - we'll all die soon ....

[bobbinwales]

Not sure davebro.... they was paying in abit less and may of had the option to pay into second state pensions serps etc, or private pension or work pension or savings

[New Judge]

//It is absurd that somebody could pay in £500k and receive the same as somebody who paid in £10k.//

And even more absurd that they will probably get less than somebody who paid in nothing (unless the higher earner paid a considerable amount more in voluntary additional contributions). But that's the State "pension" scheme for you. Though as I said, a proper discussion is outside the scope of this question (which has been adequately answered, though the answers have seemingly been dismissed by the OP).

[davebro]

Newer pensioners will also have personally funded provision and the few who don't will get made up with pension credits. We paid what we were required to do, no case for a discriminatory OAP.