Got my state pension rise details today

Byker28i said:
Full pension is £159.55 a week or just under £8300 a year. If you don't get the full state pension then there are pension credits to top it up.
I can't have a decent standard of living on that which is why I've been putting cash into private pensions for years
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Not any more, pension credits and the 2nd state pension (was serps) have all been rolled into the flat-rate scheme.
 
Swissy said:
My private pension matures in June this year, i'm not sure if i should just take the monthly payments, or take the option of a full cash payout and go on a world cruise.
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Be careful, 25% is tax free, the rest gets added to any other income you receive and that is then taxed at your normal levels of 20/40%, so if you take a large lump (more than 25% - or all of it you'll get hammered if it's a large amount.
If you take the full 25% tax free in one go the rest becomes taxable as and when you withdraw it, the whole lot of the remainder is liable to tax.
 
Swissy said:
My private pension matures in June this year, i'm not sure if i should just take the monthly payments, or take the option of a full cash payout and go on a world cruise.
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Its not easy to answer, i took my company pension 15 years ago i knew that with my state pension it would put me well into the income tax area, to this end i decided to take a tax free lump sum and reduced pension, i still pay tax but obviously not as much.
 
MatBin said:
Phil have you seen that documented anywhere as I thought the whole idea of the new flat rate pension was to simplify the "benefits" regime thereby doing away with other "benefits".

Thought it's not flat rate because unless you have paid enough years NI you wont get the full amount and of course it isnt a case of "paying in" because the NI/Tax we pay now pays for our current pensioners state pension and mine in years to come will be paid for by the then current workforce, who if shrinking in numbers will be paying a greater percentage than perhaps I paid as there will be more of us living longer (or so we're told) Sorry I am going to be a burden on you lot :)
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There’s a difference between the New state pension and the old one which some people would still be on.
 
Phil V said:
There’s a difference between the New state pension and the old one which some people would still be on.
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I thought you were indicating that those on the new pension, albeit not a full one, may be entitled to other benefits to bring them up to the same level (or similar) to the new pension and I havent seen anything along those lines, not though I would qualify as I have a private pension, so I wonder what will happen in the case where someone doesnt qualify for a full pension and has no other income or savings (subject presumably to a certain limit).
 
MatBin said:
Not any more, pension credits and the 2nd state pension (was serps) have all been rolled into the flat-rate scheme.
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My mother in law gets a pension of around £75 a week, the rest is topped up with pension credit of which everything goes on her care apart from £24.90 a week left her for personal expenses allowance.
It definitely says pension credit, we do her finances
 
Byker28i said:
My mother in law gets a pension of around £75 a week, the rest is topped up with pension credit of which everything goes on her care apart from £24.90 a week left her for personal expenses allowance.
It definitely says pension credit, we do her finances
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Existing pensioners arent affected but anyone on the new flat rate wont get serps (2nd pension) or pension credits.
 
I submitted my BR19 last year for a check so I can start making my plans and it came back with 3 more years to put in for a full pension of £155/week at age 67.
 
Mr Bump said:
that's is because you are linking NI to Pension and it is not it provides more services as has been stated a lot already.

earn more and pay more just like tax
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And aren't all those other services available to all? Even more reason everyone should pay the same. Not really fair the more you earn, the more you pay and the less you are likely to ever be able to claim back.
 
MatBin said:
So if you get a state pension and a private pension of say £18K, £11K is tax free and the remaining £7K is taxable at 20% i.e. £1400 so you end up with £15,600 pa.
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....And yet some folks accuse others of being immoral if they take sensible steps to reduce their taxes even when done legally. i.e. tax avoidance rather than tax evasion.
 
MatBin said:
Existing pensioners arent affected but anyone on the new flat rate wont get serps (2nd pension) or pension credits.
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I retired last week (March 10th) and I will get Graduated Pension and SERPS on top of my flat rate pension. Total will be just over £180 per week.

(Graduated Pension was an earlier version of SERPS).
 
john.margetts said:
I retired last week (March 10th) and I will get Graduated Pension and SERPS on top of my flat rate pension. Total will be just over £180 per week.

(Graduated Pension was an earlier version of SERPS).
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Odd, I thought it all kicked in 2016 so anyone retiring after that didn't get serps/2nd pension/graduated pension etc. All very up in the air but I am guessing it will all be sorted by the time I retire in 3 yrs and I'll miss out on what was available just 6 months before, as usual.
 
MatBin said:
Odd, I thought it all kicked in 2016 so anyone retiring after that didn't get serps/2nd pension/graduated pension etc. All very up in the air but I am guessing it will all be sorted by the time I retire in 3 yrs and I'll miss out on what was available just 6 months before, as usual.
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That is what I thought, but I am not about to start arguing.
 
The Tax Office/ DWP website was useful when I was made redundant in late 2016 as it showed how much longer I needed to work/continue to pay NI.

Now as at sometime earlier this year I have paid enough NI to qualify for my full state pension ~ according to DWP I have been paying in for 47 qualifying years. But and here is the catch.........I cannot get said pension until September 2019 when I will be some months over 65!!!

I have had a couple of breif'ish periods due to redundancy, so gaps between jobs! And in common with many was contracted out of SERPS for years.

So after 47 years working would I like to retire, heck yes but with a Defined Contribution pension savings plan........the current instability in the stock market will likely adversely affect the amount of any personal pension. So lots to think about???

Ain't getting older wonderful :LOL:
 
RedRobin said:
....And yet some folks accuse others of being immoral if they take sensible steps to reduce their taxes even when done legally. i.e. tax avoidance rather than tax evasion.
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That's neither tax avoidance or evasion, it's tax planning and lending someone/Govt a wad of cash until you retire and getting a very poor rate of return/interest before you get your hands on your money. If credit card companies owned by big banks charge what is it 18% interest I think they, the owning bank, could afford to pay more than 1.5% return on savings.
 
Box Brownie said:
Ain't getting older wonderful :LOL:
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In general, it's better than the alternative (although I'm told that the alternative can get pretty attractive as it gets closer.)
 
Nod said:
In general, it's better than the alternative (although I'm told that the alternative can get pretty attractive as it gets closer.)
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ooooh that's very 'deep' Mr Nod - and it made me shiver, having walked past a lot of memorial seats at Pagham Harbour today, most with plaques to people younger than me.
(Had to have an extra pint of London Pride with my pub lunch to settle myself).
 
I always used to greet my Grandfather with "HI, how's life?" and he'd always reply with "Better than the alternative!". Pretty much his last words to me were along the lines of the alternative looking pretty damned attractive since the final stages of Fibrosing Alveolitis aren't much fun.
 
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