Hi Bryn... Could you possibly explain the new proposed changes to the Pensions as we are a pair of Numpties who can not get our head around It?
We understand what they are saying but can not work out the Implications or benefits.
I know this Is your field so an Idiot proof guide would be helpful and then I have some further questions for you If you would not mind?
If any-one else can contribute please do.
Help from Bryn Please...
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At the going down of the sun and in the morning, we will remember them. R.L. Binyon
Help from Bryn Please...
Pensions and retirement planning : Directgov
I wouldn't get too excited just yet they are only proposed changes. But currently everyone gets means tested pension credit to bring them up to a minimum income guarantee so if you have no pension you get the minimum, if you have £50pw self financed pension that takes you up to that level you are actually no better off than someone who hasn't saved a penny. The new proposal is everybody receives a flat pension of £140 your £50pw pension would be over and above that, as it stands having a small pension is almost worse than having none at all - thank you Gordon brown. It's a major disincentive to saving - why bother if you get penalised for having it. It's a complex system that costs a lot to administer - the form to claim pensions credit and savings credit is 28 pages long, many just give up and don't bother claiming anything.
there's a lot of change to come i wouldn't worry too much about the detail.
Anger at 'unfair' pension change for women - Pensions, Money - The Independent
Pensions reforms to focus on high earners - Pensions, Money - The Independent
Or if you prefer here is the hysterical version
Pensions apartheid: Current OAPs would not qualify for the rise to £140 a week | Mail Online
I wouldn't get too excited just yet they are only proposed changes. But currently everyone gets means tested pension credit to bring them up to a minimum income guarantee so if you have no pension you get the minimum, if you have £50pw self financed pension that takes you up to that level you are actually no better off than someone who hasn't saved a penny. The new proposal is everybody receives a flat pension of £140 your £50pw pension would be over and above that, as it stands having a small pension is almost worse than having none at all - thank you Gordon brown. It's a major disincentive to saving - why bother if you get penalised for having it. It's a complex system that costs a lot to administer - the form to claim pensions credit and savings credit is 28 pages long, many just give up and don't bother claiming anything.
there's a lot of change to come i wouldn't worry too much about the detail.
Anger at 'unfair' pension change for women - Pensions, Money - The Independent
Pensions reforms to focus on high earners - Pensions, Money - The Independent
Or if you prefer here is the hysterical version
Pensions apartheid: Current OAPs would not qualify for the rise to £140 a week | Mail Online
Help from Bryn Please...
Not really my field but I think gmc's said most that needs to be said anyway.
This is just a pre-announcement of intent (so that they can claim the glory for it twice) and the green paper is not due out until "later in the year" when they've worked out what it will cost and whether they can afford it.
In theory it should simplify the administration (thus saving lots of money) and make it easier for people to claim the right amount (thus costing lots of unclaimed money) as you would be talking of a single pension payment instead of two pensions and many possible top-ups that people might or probable are not entitled to but until the green paper is published and the detail is available no-one can see the implications and even the government don't yet know the benefits.
This is just a pre-announcement of intent (so that they can claim the glory for it twice) and the green paper is not due out until "later in the year" when they've worked out what it will cost and whether they can afford it.
In theory it should simplify the administration (thus saving lots of money) and make it easier for people to claim the right amount (thus costing lots of unclaimed money) as you would be talking of a single pension payment instead of two pensions and many possible top-ups that people might or probable are not entitled to but until the green paper is published and the detail is available no-one can see the implications and even the government don't yet know the benefits.
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Bryn Mawr;1341033 wrote: Not really my field but I think gmc's said most that needs to be said anyway.
This is just a pre-announcement of intent (so that they can claim the glory for it twice) and the green paper is not due out until "later in the year" when they've worked out what it will cost and whether they can afford it.
In theory it should simplify the administration (thus saving lots of money) and make it easier for people to claim the right amount (thus costing lots of unclaimed money) as you would be talking of a single pension payment instead of two pensions and many possible top-ups that people might or probable are not entitled to but until the green paper is published and the detail is available no-one can see the implications and even the government don't yet know the benefits.
Thank You for the links Auld Yin and Bryn.
One more question Auld Yin... What would happen If a husband was over retirement age and his wife was under? He has part private pension so I understand about that just being rounded off to a set amount but what about his wife If she was his carer?
This is just a pre-announcement of intent (so that they can claim the glory for it twice) and the green paper is not due out until "later in the year" when they've worked out what it will cost and whether they can afford it.
In theory it should simplify the administration (thus saving lots of money) and make it easier for people to claim the right amount (thus costing lots of unclaimed money) as you would be talking of a single pension payment instead of two pensions and many possible top-ups that people might or probable are not entitled to but until the green paper is published and the detail is available no-one can see the implications and even the government don't yet know the benefits.
Thank You for the links Auld Yin and Bryn.
One more question Auld Yin... What would happen If a husband was over retirement age and his wife was under? He has part private pension so I understand about that just being rounded off to a set amount but what about his wife If she was his carer?
At the going down of the sun and in the morning, we will remember them. R.L. Binyon
Help from Bryn Please...
oscar;1341057 wrote: Thank You for the links Auld Yin and Bryn.
One more question Auld Yin... What would happen If a husband was over retirement age and his wife was under? He has part private pension so I understand about that just being rounded off to a set amount but what about his wife If she was his carer?
Carer's allowance should be independent of the pension - it it paid to the carer as being cheaper than paying the NHS for the service regardless of the age of the person being looked after. Whether the money is used to pay for outside assistance or used as compensation for the loss of earnings by the carer being unable to work it saves the government money.
One more question Auld Yin... What would happen If a husband was over retirement age and his wife was under? He has part private pension so I understand about that just being rounded off to a set amount but what about his wife If she was his carer?
Carer's allowance should be independent of the pension - it it paid to the carer as being cheaper than paying the NHS for the service regardless of the age of the person being looked after. Whether the money is used to pay for outside assistance or used as compensation for the loss of earnings by the carer being unable to work it saves the government money.
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Bryn Mawr;1341060 wrote: Carer's allowance should be independent of the pension - it it paid to the carer as being cheaper than paying the NHS for the service regardless of the age of the person being looked after. Whether the money is used to pay for outside assistance or used as compensation for the loss of earnings by the carer being unable to work it saves the government money.
Thank You Bryn that Is a great help. So am I right In saying In Hindsight that we did the best thing when Peter reached retirement and we cashed In for lump sums part of his private pensions and the rest paid monthly? Because as I understand It now, If we had not have taken lump sums In part payment and taken the lot monthly, It would just be topped up to the £140 a week.
Thank You Bryn that Is a great help. So am I right In saying In Hindsight that we did the best thing when Peter reached retirement and we cashed In for lump sums part of his private pensions and the rest paid monthly? Because as I understand It now, If we had not have taken lump sums In part payment and taken the lot monthly, It would just be topped up to the £140 a week.
At the going down of the sun and in the morning, we will remember them. R.L. Binyon
Help from Bryn Please...
oscar;1341061 wrote: Thank You Bryn that Is a great help. So am I right In saying In Hindsight that we did the best thing when Peter reached retirement and we cashed In for lump sums part of his private pensions and the rest paid monthly? Because as I understand It now, If we had not have taken lump sums In part payment and taken the lot monthly, It would just be topped up to the £140 a week.
That doesn't appear to be the idea. Instead of a means tested first pension and a final salary (maybe) second pension plus top-ups the new proposal is a single fixed pension of £140/week for all and anything you've saved on your own you keep.
So the equation for the lump sum is purely internal - how much interest you can get on the lump vs how much extra they'll pay you if you don't take it.
That doesn't appear to be the idea. Instead of a means tested first pension and a final salary (maybe) second pension plus top-ups the new proposal is a single fixed pension of £140/week for all and anything you've saved on your own you keep.
So the equation for the lump sum is purely internal - how much interest you can get on the lump vs how much extra they'll pay you if you don't take it.
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Bryn Mawr;1341067 wrote: That doesn't appear to be the idea. Instead of a means tested first pension and a final salary (maybe) second pension plus top-ups the new proposal is a single fixed pension of £140/week for all and anything you've saved on your own you keep.
So the equation for the lump sum is purely internal - how much interest you can get on the lump vs how much extra they'll pay you if you don't take it. Got It.... Thank You Bryn.
So the equation for the lump sum is purely internal - how much interest you can get on the lump vs how much extra they'll pay you if you don't take it. Got It.... Thank You Bryn.
At the going down of the sun and in the morning, we will remember them. R.L. Binyon
Help from Bryn Please...
oscar;1341061 wrote: Thank You Bryn that Is a great help. So am I right In saying In Hindsight that we did the best thing when Peter reached retirement and we cashed In for lump sums part of his private pensions and the rest paid monthly? Because as I understand It now, If we had not have taken lump sums In part payment and taken the lot monthly, It would just be topped up to the £140 a week.
State Pension and Pension Credit rate: how much can you get? : Directgov - Pensions and retirement planning
Pension Credit – what is the rate?
If you are a pensioner living in Great Britain, in 2010-11, Pension Credit could top up your weekly income to a guaranteed minimum of:
* £132.60 if you are single
* £202.40 if you have a partner
If you are aged over 65 you may also be able to get up to an additional:
* £20.52 a week if you are single
* £27.09 a week if you have a partner
To find out if you might be eligible for Pension Credit see ‘Pension Credit – introduction’.
The age from which you can get Pension Credit is gradually increasing from 60 to 65 between April 2010 and April 2020. If you want to know at what age you might be able to claim Pension Credit, see 'Calculating your State Pension age'.
You're getting the state pension and private pensions mixed up. Everybody gets the state pension private pensions are over and above that. You should be in receipt of the married couples pension £97.65 + £58.50, that's the basic you might have second state pension as well, but that gets complicated trying to explain . You will be entitled to the single persons pension of £97.65 assuming you have enough NIC contributions. If you don't the minimum income guarantee (pension credit) kicks in bringing you up to £134 (I think). If your income is at that level or above you get nothing extra. That's the problem with the present system, if you have private pension income of £50 pw that takes you over the threshold and you get nothing. If you have no pension savings you get pension credit and are just as well off as the pensioner who tried to provide for themselves. The flat rate £140 pw would be fairer and at least someone who saved would actually see the benefit. It would probably work in your favour
Private pension are a different ballgame and totally separate, if from an occupation scheme their may be a widows pension. If it was from a private pension that will depend on how the annuity was set up, Peter may have built in a widows pension or a guaranteed period, if he didn't the pension stops when he does. Unless he went for pension drawdown or something like that but it sound like he didn't.
State Pension and Pension Credit rate: how much can you get? : Directgov - Pensions and retirement planning
Pension Credit – what is the rate?
If you are a pensioner living in Great Britain, in 2010-11, Pension Credit could top up your weekly income to a guaranteed minimum of:
* £132.60 if you are single
* £202.40 if you have a partner
If you are aged over 65 you may also be able to get up to an additional:
* £20.52 a week if you are single
* £27.09 a week if you have a partner
To find out if you might be eligible for Pension Credit see ‘Pension Credit – introduction’.
The age from which you can get Pension Credit is gradually increasing from 60 to 65 between April 2010 and April 2020. If you want to know at what age you might be able to claim Pension Credit, see 'Calculating your State Pension age'.
You're getting the state pension and private pensions mixed up. Everybody gets the state pension private pensions are over and above that. You should be in receipt of the married couples pension £97.65 + £58.50, that's the basic you might have second state pension as well, but that gets complicated trying to explain . You will be entitled to the single persons pension of £97.65 assuming you have enough NIC contributions. If you don't the minimum income guarantee (pension credit) kicks in bringing you up to £134 (I think). If your income is at that level or above you get nothing extra. That's the problem with the present system, if you have private pension income of £50 pw that takes you over the threshold and you get nothing. If you have no pension savings you get pension credit and are just as well off as the pensioner who tried to provide for themselves. The flat rate £140 pw would be fairer and at least someone who saved would actually see the benefit. It would probably work in your favour
Private pension are a different ballgame and totally separate, if from an occupation scheme their may be a widows pension. If it was from a private pension that will depend on how the annuity was set up, Peter may have built in a widows pension or a guaranteed period, if he didn't the pension stops when he does. Unless he went for pension drawdown or something like that but it sound like he didn't.
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gmc;1341110 wrote: State Pension and Pension Credit rate: how much can you get? : Directgov - Pensions and retirement planning
You're getting the state pension and private pensions mixed up. Everybody gets the state pension private pensions are over and above that. You should be in receipt of the married couples pension £97.65 + £58.50, that's the basic you might have second state pension as well, but that gets complicated trying to explain . You will be entitled to the single persons pension of £97.65 assuming you have enough NIC contributions. If you don't the minimum income guarantee (pension credit) kicks in bringing you up to £134 (I think). If your income is at that level or above you get nothing extra. That's the problem with the present system, if you have private pension income of £50 pw that takes you over the threshold and you get nothing. If you have no pension savings you get pension credit and are just as well off as the pensioner who tried to provide for themselves. The flat rate £140 pw would be fairer and at least someone who saved would actually see the benefit. It would probably work in your favour
Private pension are a different ballgame and totally separate, if from an occupation scheme their may be a widows pension. If it was from a private pension that will depend on how the annuity was set up, Peter may have built in a widows pension or a guaranteed period, if he didn't the pension stops when he does. Unless he went for pension drawdown or something like that but it sound like he didn't.
Thanks for this.... As It stands at the moment, I get nothing !!!! Peter gets part State Pension and some Private but I get nothing because I am 15 years younger than him. I do believe that his pension ends when he does and there Is no widows pension but I have been advised by the hospital that I should start claiming as a Carer. I am afraid that I have not looked Into this as much as I should have done and given Peter's health, It now worries me about what I do.
You're getting the state pension and private pensions mixed up. Everybody gets the state pension private pensions are over and above that. You should be in receipt of the married couples pension £97.65 + £58.50, that's the basic you might have second state pension as well, but that gets complicated trying to explain . You will be entitled to the single persons pension of £97.65 assuming you have enough NIC contributions. If you don't the minimum income guarantee (pension credit) kicks in bringing you up to £134 (I think). If your income is at that level or above you get nothing extra. That's the problem with the present system, if you have private pension income of £50 pw that takes you over the threshold and you get nothing. If you have no pension savings you get pension credit and are just as well off as the pensioner who tried to provide for themselves. The flat rate £140 pw would be fairer and at least someone who saved would actually see the benefit. It would probably work in your favour
Private pension are a different ballgame and totally separate, if from an occupation scheme their may be a widows pension. If it was from a private pension that will depend on how the annuity was set up, Peter may have built in a widows pension or a guaranteed period, if he didn't the pension stops when he does. Unless he went for pension drawdown or something like that but it sound like he didn't.
Thanks for this.... As It stands at the moment, I get nothing !!!! Peter gets part State Pension and some Private but I get nothing because I am 15 years younger than him. I do believe that his pension ends when he does and there Is no widows pension but I have been advised by the hospital that I should start claiming as a Carer. I am afraid that I have not looked Into this as much as I should have done and given Peter's health, It now worries me about what I do.
At the going down of the sun and in the morning, we will remember them. R.L. Binyon
Help from Bryn Please...
oscar;1341151 wrote: Thanks for this.... As It stands at the moment, I get nothing !!!! Peter gets part State Pension and some Private but I get nothing because I am 15 years younger than him. I do believe that his pension ends when he does and there Is no widows pension but I have been advised by the hospital that I should start claiming as a Carer. I am afraid that I have not looked Into this as much as I should have done and given Peter's health, It now worries me about what I do.
tsk tsk and you wanted to be an MP:sneaky:
Carer's Allowance : Directgov - Money, tax and benefits
Carer's Allowance - introduction : Directgov - Caring for someone
Who can get Carer's Allowance
You need to be caring for somebody who is getting one of the following benefits:
* Attendance Allowance
* Disability Living Allowance at the middle or highest rate for personal care
* Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit, or basic (full day) rate with a War Disablement Pension
You have credit on your husbands NI record but the changes made and those proposed mean you will get a state pension in your own right.
tsk tsk and you wanted to be an MP:sneaky:
Carer's Allowance : Directgov - Money, tax and benefits
Carer's Allowance - introduction : Directgov - Caring for someone
Who can get Carer's Allowance
You need to be caring for somebody who is getting one of the following benefits:
* Attendance Allowance
* Disability Living Allowance at the middle or highest rate for personal care
* Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit, or basic (full day) rate with a War Disablement Pension
You have credit on your husbands NI record but the changes made and those proposed mean you will get a state pension in your own right.