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Government attacks the elderly AGAIN
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Author:  Westonman [ Wed Jun 11, 2014 10:52 am ]
Post subject:  Government attacks the elderly AGAIN
After so many broken promises, blatant bare-faced lies, and fraud perpetrated by the politicians, are we really surprised at this latest news item?

http://www.dailymail.co.uk/money/pensio ... nsion.html

Quote:
Around six in ten workers will miss out on the full £155-a-week new flat-rate state pension when it is introduced in 2016, Money Mail can reveal.
Despite Government promises that anyone who stayed in employment their whole working life would be able to get the full state payout, official figures show that just 250,000 men and women will receive the maximum weekly amount.
In total, 58 per cent of workers retiring in 2016 will get less than £155. More than two decades after the scheme is introduced, one in five will still fail to qualify for the full weekly payout.
The revelation will be a blow to millions of people in their early 60s who have no time to build up extra qualifying years for the new pension.
The worst affected will be women, and anyone who spent years employed by a company that allowed them to save into a final-salary pension. They won’t get the full payout because they were allowed to pay reduced National Insurance contributions as they 'contracted out' of the second state pension.
It will also hit teachers, nurses, servicemen and civil servants.


We also learn from Francis Maude (that personification of arrogance) that the aged, the least able to defend themselves, are to either access Government 'services' via the internet or take the risk of losing out.
http://www.dailymail.co.uk/news/article ... vices.html
Quote:
Older people must start using the internet or run the risk of losing access to government services, a senior Tory said yesterday.
The vast majority of public services will only be available online in the future, said Cabinet Office Minister Francis Maude.

The true heartless and inhumane nature of the political class in this country is now so clear that even the wilfully blind must be able to see it.
Author:  Kremmen [ Thu Jun 12, 2014 6:34 am ]
Post subject:  Re: Government attacks the elderly AGAIN
Correct

The published increase to £150 ish will not apply to anyone who has a workplace pension as well. The only guarantee in place, currently, is that you will will not be worse off than today which is circa £133.

I went on a full day company sponsored Pensions seminar a few weeks ago where all this was explained.

Also explained was the very serious consequences of anyone considering taking their pension as a lump sum from next year instead of buying an Annuity. We had experts doing the maths and the bottom line was if you take your pot and 'buy a Ferrari' then you are being very foolish.

The main thing to realise is that there is a threshold where the lump sum taken is taxed at 40% so your £200k pension pot for example, you would not get anywhere near that figure as a lump sum and once it's gone it's gone.
Author:  Westonman [ Thu Jun 12, 2014 9:56 am ]
Post subject:  Re: Government attacks the elderly AGAIN
Kremmen, I don't understand where that “circa £133” comes from. The Government began talking of a basic State Pension under the new scheme of £140, now they talk of £155.

This statement reflects my current situation:

https://www.gov.uk/state-pension/overview
Quote:
You reach State Pension age before 6 April 2016

The basic State Pension is a regular payment from the government that you can get when you reach State Pension age.
To get it you must have paid or been credited with National Insurance contributions.
The most you can currently get is £113.10 per week.
The basic State Pension increases every year by whichever is the highest:
earnings - the average percentage growth in wages (in Great Britain)
prices - the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)
2.5%
On top of the basic £113.10 per week, I also receive a 'top-up' for the number of years I was “contracted in” to SERPs, the then Government second pension. Which totals considerably more than the £140 - £155 the Government has been talking about. However, I had to pay into the State scheme for at least 44 years to qualify for a full pension; I understand that the new scheme will require only 30 years of payment in order to receive a full State Pension. I actually paid into the State scheme for 46 years, but I don't receive any extra benefit for those 2 additional years I paid into the State scheme.

And because I also receive private pensions, all of my State Pension is subject to Income Tax. In addition, this Government has frozen the Age Related Allowance for pensioners with private pension/s; which actually results in a tax increase for people like myself who have made private provisions.

I didn't take any of the tax free lump sum out of my pension pots. I didn't need it at the time, and I reasoned that the higher pension income would help off-set the devaluation that would inevitably take place over my retirement years. I know of several people who did take the lump sum, spent the money on a some luxury, such as a new car or a cruise holiday, and have lived to regret it.
Author:  Kremmen [ Thu Jun 12, 2014 11:13 am ]
Post subject:  Re: Government attacks the elderly AGAIN
My figures will be out as I typed without reference to the actual figures. I was just trying to get my info across.

The facts are that not everyone will get the £155 state pension as you quite rightly say. It will be reduced after a sort of 'means testing' your company pension but it will not drop below the current pension figure as issued now. That is currently £113.10 and I apologies for the incorrect figure :)

At best you will get the £155+, at worst you will get the £113.10 and no lower.

This of course only applies to people who reach their normal retirement age after 2016. That includes me and I have a generous company pension so I will likely only get the £113.10 or whatever the state pension is at that time.

In my info pack is reference to a DWP 'State Pension Profiler' that is available at www.gov.uk where you can input your circumstances and it will give the answer. It also states, as you mention that SERPS/S2P finishes on 5th April 2016 when the new flat rate single pension takes over.
Author:  ARTFTE [ Thu Jun 12, 2014 4:12 pm ]
Post subject:  Re: Government attacks the elderly AGAIN
Quote:


We also learn from Francis Maude (that personification of arrogance) that the aged, the least able to defend themselves, are to either access Government 'services' via the internet or take the risk of losing out.
http://www.dailymail.co.uk/news/article ... vices.html
Quote:
Older people must start using the internet or run the risk of losing access to government services, a senior Tory said yesterday.
The vast majority of public services will only be available online in the future, said Cabinet Office Minister Francis Maude.

The true heartless and inhumane nature of the political class in this country is now so clear that even the wilfully blind must be able to see it.


Older people must start using the internet
Image
Author:  Westonman [ Thu Jun 12, 2014 10:14 pm ]
Post subject:  Re: Government attacks the elderly AGAIN
Kremmen wrote:
My figures will be out as I typed without reference to the actual figures. I was just trying to get my info across.

The facts are that not everyone will get the £155 state pension as you quite rightly say. It will be reduced after a sort of 'means testing' your company pension but it will not drop below the current pension figure as issued now. That is currently £113.10 and I apologies for the incorrect figure :)

At best you will get the £155+, at worst you will get the £113.10 and no lower.

This of course only applies to people who reach their normal retirement age after 2016. That includes me and I have a generous company pension so I will likely only get the £113.10 or whatever the state pension is at that time.

In my info pack is reference to a DWP 'State Pension Profiler' that is available at http://www.gov.uk where you can input your circumstances and it will give the answer. It also states, as you mention that SERPS/S2P finishes on 5th April 2016 when the new flat rate single pension takes over.
No need to apologise Kremmen. I wasn't taking issue with you. I wasn't aware where the £133 per week came from. I have heard/read the Government mention a figure in the region of £140 per week for the new State Pension, and crowing about it as though this were some great new beneficial scheme to relegate pensioner poverty to the history books. Recently, the figure of £155 per week has appeared in the media, and I didn't know where this came from. You have made things so much clearer, and confirmed what has been the case for some time, that the prudent and self-provider will continue to be disadvantaged by the State.

The political class see the State Pension as a "benefit", not as a pension determined by individual contributions. The written communications I now receive from the DWP actually use the word "benefit" to describe my earned and paid for State Pension.
Author:  Kremmen [ Fri Jun 13, 2014 7:39 am ]
Post subject:  Re: Government attacks the elderly AGAIN
I guess this is why they are now forcing companies to start these workplace pensions that are being advertised on the telly. Once the majority are under these schemes the reliance on the current state pension will reduce and so will the Gov's bill. It does make sense.

The only issue is going to be that the poorly paid will be worse off in the short term as they will now be paying into a pension pot and with the employer also having to contribute take home pay will presumably be adjusted downwards ?
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