UK State pension will be over £100

D

Dave The Dude

Guest
State pension will be over £100

The state pension will climb to over £100 a week for the first time next year.


By Harry Wallop, Consumer Affairs Editor
Published: 2:15PM BST 12 Oct 2010
Comment


john-bull_1732606c.jpg
Ray Egan, dressed as John Bull, demonstrates against pension cuts outside the Conservative Party ConferencePhoto: GETTY


It is likely to rise by £4.49 a week from £97.65 to around £102.14, giving some small comfort to pensioners who have suffered from a fall in savings rates and rise in the cost of living in the last few years.

The rise, which will take effect from April next year, comes after official figures showed that inflation continued to rise at well above the Government's target.



Rises in the state pension are set by examining the level of the Retail Prices Index in the previous September. The September figure came in at 4.6 per cent, well above the target of 2 per cent.
This was compared with a negative rate of inflation last year, which meant that pensioners only received an increase of the minimum amount of 2.5 per cent this year.
The Government has pledged a minimum rise of 2.5 per cent or the increase RPI, whichever is higher.
Given that RPI is higher, this will mean the current payment will almost certainly rise by around £4.49 a week, from £97.65 to around £102.14.
The joint pension will rise from £156.15 to around £163.33.
However, this will be the last time state pension payments will be based on RPI, with the coalition Government switching to Consumer Prices Index (CPI) inflation from next year. This may mean lower increases in payments from April 2012 onwards. For instance, last month while RPI was 4.6 per cent, CPI was 3.1 per cent.
The basic state pension was introduced in 1908 at 5 shillings a week for men and women over the age of 70 – a payment that has kept almost exactly in line with inflation. It would be worth £102 in today's money.
 
Always the bloody same, too little too late, and also they give a little increase one year, but guarantee that the increase the following year will be even less. :Admin: Think1
 
I recall that when I reached 80 I was given an increase of 25p per week . It costs more than that to administer . As for the SF administrator to say that he hasn't got his pension yet , you have to serve the time first !!!!!!
 
By the time SF Admin can claim his, the conditions will likely have changed again, and the pension may only be paid to UK residents! :Cry3:
 
I did the UGOV pension test game, Nick and it said as I was born in 1957, mine stays at 65.

I'm going Monday with Tony BTW
 
Sorry to disappoint Dave,but born in 1957 means you will not be 65 till 2022. From 2020, everyone - men, women and CC- :GrinNod1: will not get the pension until they are 66.

The Government web sites have not been updated following yesterdays announcement.

When will I retire, then?
What we know for sure is this: all men and women under 57 will have to wait at least until 66 before they can retire.


MEN - a rough guide
• Under 32s................................. can get state pension at 68*
• Aged between 32 and 41....................... can get state pension at 67*
• Aged between 42 and 57.........................can get state pension at 66
• Older than 57......................can get state pension at 65


*Warning! These changes are under review and will be altered by the coalition Government. Expect further announcements 'in due course', they say.

Enjoy Pattaya next week!
 
State Pension Age increases: you ain't seen nothing yet
pensioners-sunbathe_794313c1.jpg
Get back to work! (Photo: AFP/Getty)

A document issued by the Department for Work and Pensions (DWP) last night, several hours after Chancellor George Osborne finished telling Parliament about his Comprehensive Spending Review, says the Government plans “future increases to the State Pension Age” in addition to those announced yesterday.
While the disclosure is likely to be greeted with dismay by many women and others, pension experts view it as inevitable. They say rising life expectancy and massive savings from raising State Pension Age mean further delays in retirement make economic sense but questioned whether these would be fair to poorer people who tend to die earlier than wealthier ones.
The DWP document, issued at 6.15pm, explains the effect of various welfare reforms. It says: “The Spending Review also announces that State Pension Age equalisation at 65 will be brought forward to November 2018. Both the male and female pension age will then increase to 66 by April 2020. This will affect around 5.1m people.
“Over the period 2015 to 2025 this will save around £30bn through a reduction in spending on State Pensions and pensioner benefits while raising around £13bn through increased Income Tax receipts and National Insurance contributions.”
Then, crucially, it adds: “The Department for Work and Pensions will publish further details and a full impact assessment shortly. The Government will also bring forward further proposals for future increases to the State Pension Age to help manage the ongoing challenges posed by increasing longevity.”
Tom McPhail, pensions expert at wealth managers Hargreaves Lansdown, said: “The DWP analysis demonstrates the enormous value to a cash-strapped Government of making us all work longer. Not only will they save £30bn by reducing pension payments but they will collect an extra £13bn in extra tax and NICs before the end of the Spending Review period.
“These are enormous sums by any standards and so it would be no surprise if they were to come back for more in the not-too-distant future.”
Andrew Gaches, longevity consultant at actuaries Club Vita, said Office for National Statistics figures show how lengthening lifespans mean longer working lives are inevitable. He said: “Increases in the state pension age still do not reflect the real picture of life expectancy. For men, there will be an increase of one year in the next decade, yet life expectancy is increasing by at least double that.
“We’re not even treading water on this issue, yet the government has reiterated its desire to provide a decent income in retirement – the costs and the current funding simply won’t add up.”
However, Mr Gaches added that simply raising retirement ages may have an unfair impact on poor people and others. He explained: “Ad-hoc changes to the state pension age do not make the system sustainable or fair. Consider, for example, that life expectancy levels vary widely between different parts of society with lower income and unhealthy individuals likely to suffer with substantially lower life expectancy rates.
“By using life expectancy at the national level to inform the acceleration of planned changes to State Pension Age, these disparities will be ignored and ultimately, lower income individuals who are most reliant on the state pension stand likely to be most affected.”
Joanne Segars, chief executive of the National Association of Pension Funds, said: “Increases in the state pension age are inevitable, but they must be handled fairly. People need time to plan and adapt.
“The trade-off for a later retirement must be a better state pension, particularly as the UK’s is the worst in Europe.”
 
People will be too old to spend their bloody pension. That is of course when they get it.
The government 'wallers' only line their own pockets, never the working man!:NoNo3:
 
Prakhonchai Nick said:
Sorry to disappoint Dave,but born in 1957 means you will not be 65 till 2022. From 2020, everyone - men, women and CC- :GrinNod1: will not get the pension until they are 66.

The Government web sites have not been updated following yesterdays announcement.

When will I retire, then?
What we know for sure is this: all men and women under 57 will have to wait at least until 66 before they can retire.


MEN - a rough guide
• Under 32s................................. can get state pension at 68*
• Aged between 32 and 41....................... can get state pension at 67*
• Aged between 42 and 57.........................can get state pension at 66
• Older than 57......................can get state pension at 65


*Warning! These changes are under review and will be altered by the coalition Government. Expect further announcements 'in due course', they say.

Enjoy Pattaya next week!
Click to expand...

Doesn`t effect me thank god. my pension is an income leveling one...thank god...did you investigate what we talked about at ray`s nick ?
 
You must log in or register to reply here.
Back
Top