Pension cuts could affect future claimaints

[MrPlum]

No, I haven't put her circumstances through the calculator. OAP is so far down the line, I've never taken it into our retirement plans.

Likewise. Until yesterday. Having done so, I was pleasantly surprised.

This won't apply to most and probably isn't necessary but you never know. Apparently some ex-servicemen don't believe their time in the service goes towards their basic state pension, only their military pension. This is incorrect... https://www.ctp.org.uk/assets/document/417241

Using the pension calculator, you see 30 years of NIC contributions are required to receive the basic state pension in full. So if you completed 22 years military service, then you need only another 8 years in employment.

If you were in education or employment from 16-19 those years also count. Now you only need 5 or 6. You can remain in employment, or top up the missing years with additional contributions.

There may be other factors to take into account. The calculator is simple to use.

[sargeant]

Noz yes it does seem you are right but it is still bluddy confusing

Yes BB just what i feel to

I just find it damned annoying that the goalposts are being moved for something that so many have paid into, and now find themselves excluded through no fault of their own.

It does seem to me this is also being pushed out of Tory fear of the UKIP

[margaretcarnes]

Edit - forgot to add, that one thing all the 'simplification' of the welfare payments system achieves is a huge reduction in the cost of administering it. And the biggest cost factor in all of that administration is the assessment of means tested benefits, so getting rid of those reduces the vast army of public servants currently needed to manage all the changes and additions to the various schemes successive Governments have introduced over the last 50 years!

Any other time I would agree with that caller. Except that the introduction of Universal Credit in October will probably create even more work and confusion, especially as they can't even get the computer programmes to cope with it yet!

[tuktukmike]

I must admit that due to the current financial circumstances in the uk I think all pensions for people living overseas should be suspended.

My idea would then be that in 2024 all overseas pensioners should receive a double pension for the hardship we or some have endured.

I would be happy to forgo my pension for the next 10 years to help my country out of the mire its in.

For once think of what you can do for your country, not what you're country can do for you.

Ttm

[richard]

I'll leave other pensioners on the forum who have worked hard for their pensions to respond to your post. I'm assuming you are not joking?

[caller]

Any other time I would agree with that caller. Except that the introduction of Universal Credit in October will probably create even more work and confusion, especially as they can't even get the computer programmes to cope with it yet!

Think longer term Mags. Local Authorities employ many staff (or outsource the service) to administer Housing Benefits. The bigger the authority, the more staff needed, that will start to be wound down quite soon and from 2017, there will probably only be a need for a skeleton staff in each authority. Likewise, for the duplication with tax credits and so on.

MrP, just remember that from 2016, the qualifying period for a full pension will be 35 years. Condoking is right, in that the calculator is for the current regs, but for most, all you need to do is add another 5 years on and there isn't too much difference as to whether you get a full pension or not.

Sarge, this has got nothing to do with UKIP, these are part of longer term plans from before the time UKIP were still dreaming of the impact they now have. Labour would have made similar changes.

[MrPlum]

MrP, just remember that from 2016, the qualifying period for a full pension will be 35 years.

Thanks. Unless I have misunderstood, it seems I'll be better off than under the existing system.

[tuktukmike]

Richard,

Of course im not joking, its all hands to the wheel at the moment. Its time todays pensioners gave something back to help out the country and the bankers who are living in poverty while those abroad are sunning themselves on tropical beaches.

Also remember the poor Bulgarians and romanians who will need to be fed and watered.

Trouble is there are so many selfish people who are unwilling to give a little back thus allowing people like me to receive a nice healthy pension.

Just remember your loss if you choose now could be my gain later.

So cmon think of others for once and not ya selves.

Ttm

[JimmyGreaves]

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

[HHTel]

TukTukMike, You are either a complete prat or you are very very naive. Throughout all my working life, we were encouraged to put money aside in pension schemes. Not only did it secure a better future in our old age, it helped the economy at the time. In those days, we trusted the advice of our 'government' only to find now that further governments, who have spent the proceeds, on God knows what, are now penalising people who heeded their advice. I would never advise anyone to invest in anything that has the word 'pension' in it. Better to invest your savings in some 'safe' bonds or even just in a 'high interest' account. Then future governments will not be able to change the rules to suit themselves or because they can't afford to pay back what the good citizens have invested.

I have some 250,000 pounds in pension funds which I can't get my hands on. The government changed the rules this year limiting even further the amount I can 'draw down' each year. That amount is less than the growth of the capital. Of course, as your capital grows throughout your retirement, then at some point you are going to die with funds in 'pension funds'. Oh wow, then the government can claim 55 percent of whats left in inheritance tax!!!

Rereading your post, I reckon you are having a laugh and I can see the sarcasm now!

Help out your country. We did that by listening to them in the first place. Are you having a laugh??

[tuktukmike]

HHTel you really must be a numpty if you could not see what my post was about although I see at the end you say you did.

We are all going to get screwed on our pensions including civil servants, but there is of course one group of people who won't and that is of course our beloved MP's.

My remarks about the Bulgarians/Romanians refers to the fact that after a qualifying period they will also be able to claim pension rights.

Try and read a post properly before making rash assumptions sunshine.

ttm

[HHTel]

Sorry, Tuktuk,

I scanned instead of reading. But on my second read, I saw the point as I corrected myself after submitting.

[tuktukmike]

No problem HHTel,

When I am in the uk I always listen to Radio 5 live, there was a discussion on there one night about the pension situation and it would seem we were all warned years ago that are pensions were at risk.

Membership of the European Union we were told by certain experts would result in our Goverment not having the funds to pay the pensions we were promised, now I am sure there are those on this forum with a better understanding of fiscal matters but my take is simple.

We have millions of economic migrants/asylum seekers and all sorts of mis-fitts that have arrived in the uk, the vast majority have little to no skills and rely on state handouts.

Everyone is aware that for years these people can and do claim things like child credit for children that are not even resident in the uk, we are now subject to another huge influx of migrants this coming january.
The goverment are saying that they do not expect more than 550,000 from Bulgaria/romania but we are all well aware how wrong goverment were in the past.

The people from these countries will arrive with little to no english language skills and certainly no skills that we may require in the work place.

This means a further burden on the state welfare system as we already have witnessed with the last influx, so I am at a loss as to where the funds for these people will come from considering we cant even properly fund the NHS or state pensions.

I will qualify for a full state pension when I reach 65?/68?/70? who knows but I am under no illusion that I will not get back what I was promised, so for me if I get half what I expected thats a bonus.

For now every penny I earn in the UK goes into savings although many say its safer under your mattress, time will tell.
But as far as I can see the UK is a Bankrupt country run by people with no skills and no idea how to resolve the situation we find ourselves in and that goes for all the political partys.

ttm

[HHTel]

[ahandpatsy]

I have some 250,000 pounds in pension funds which I can't get my hands on. The government changed the rules this year limiting even further the amount I can 'draw down' each year. That amount is less than the growth of the capital. Of course, as your capital grows throughout your retirement, then at some point you are going to die with funds in 'pension funds'. Oh wow, then the government can claim 55 percent of whats left in inheritance tax!!!


Just to correct a few points;

Obviously you can get 25% tax free

The government actually changed the rules this year so you can get 20% more out of your pension drawdown not less. This happened April 5th.

Yes there is a limit which is put there to stop people "pissing" away all there pension savings in one go and therefore becoming a burden on the state

The amount is about 6% - 7% which may be more or less than the growth in capital. Certainly if you are invested in safer areas, which you should be with your pension 6-7% a year is tough to get. (not an easy 10% a year as another poster here claims)

The 55% tax (its completely different from inheritance tax which is charged at 40%) is only if your spouse or estate wants to take the lump sum. The could have drawdown or an annuity

And lastly if you do not crystallise your pension and you die then your spouse gets the whole lot tax free into their bank account.

Chok Dee