How much the state pension is going up next year revealed - as retired Brits get another inflation-busting rise

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MacManiac
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Re: How much the state pension is going up next year revealed - as retired Brits get another inflation-busting rise

Post by MacManiac » Sat Nov 17, 2018 9:47 am

Your pension, the time you are able to claim it, and the amount you receive seems to be in the hands of the gods. My wife had to wait fourteen months after her sixtieth birthday to receive her state pension (and she was amazed how much SERPS added to the final figure). I retired at fifty-five and my teacher’s pension was index-linked. My army pension is “beer money” as my short-service commission was for five years. I received that, as promised, on my sixtieth birthday. My state pension I received on my sixty-fifth birthday, and that was more than I anticipated. So, for us, we had no complaints. But, my goodness, if we were older or younger, it would have been so different.

Our daughter is 39, and I doubt whether the state pension will even exist (and certainly not in its current form). She can’t afford to pay into a private scheme as she is an artist and lurches from one financial crisis to another - despite help from the bank of Mum and Dad. I talk to her about the future and she rolls her eyes. There is a large alternative community on the Sussex coast and they are all in the same position. Goodness knows what will happen to them all when they “retire” in the future.

The pension increase from April 2019 will be welcome. Of course we would all like to have more, but that’s human nature. For those who have lost thousands and thousands because of changes to the system, I feel the utmost sympathy. I would be absolutely livid. Interestingly enough I heard from a young teacher at the school I used to run recently. She is being asked to pay far more into her pension, will have to work much longer and will receive less when she retires. All teachers have no choice but to join the teachers’ pension scheme. And the government changes the rules midstream ...

We feel that our pension situation will be seen as a golden age by those younger than us. And will they be able to retire to the sunshine of Cyprus by right?

Hudswell
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Re: How much the state pension is going up next year revealed - as retired Brits get another inflation-busting rise

Post by Hudswell » Sat Nov 17, 2018 10:09 am

Uncle D wrote:
Sat Nov 17, 2018 8:18 am
galexinda wrote:
Fri Nov 16, 2018 6:24 pm
What about all the ladies who have had their retirement messed up by the way the pension age was increased from 60 to 66? The UK government has made a huge saving at the expense of many women.
Exactly at today's 130 per week my wife stands to lose 40,500 over the extra 6 years she has to wait, I also lose 6,750 for the extra year and that's is if the government don't decide to move the goalposts again.
I am glad that I am not paying any taxes or N.I. in that country anymore.
And what do you suggest the Government do ? The population is aging and lasting longer! and the currant State pension was rapidly becoming unaffordable, it simply had to change. There will always be winners and losers, the winners are our kids and grandkids who might actually get some form of State pension, and yes it hit the losers hard, a small minority especially. But in the main the new regulations will allow people to plan based on different retirement ages, setting expectations. In our Cypriot planning we "expected" to be able to join the "Health" service when my wife hit 60, she will now be 67 when that happens, I actually Reach state retirement age before her now...by four years..an extra 4 years of expensive health insurance, in addition of course to the "losses" from our state pension. But sorry I would rather that than see future generations go without, or suffer more because their taxes are increased to pay for me, for you.
Last edited by Hudswell on Sat Nov 17, 2018 12:25 pm, edited 1 time in total.
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Varky
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Re: How much the state pension is going up next year revealed - as retired Brits get another inflation-busting rise

Post by Varky » Sat Nov 17, 2018 10:21 am

The problem is that the state pension is a glorified Ponsi scheme, i.e you pay 'dividends' out of future income, instead of investing each individual's contributions. Ponsi schemes are now illegal as far as I am aware.

So when that income depletes or the 'dividends' to be paid increases due to an increasing aged population there is a problem. So all that can be done is to increase the age at which the 'dividends' are handed out to match the expected period of time that previously existed when life expectancy was shorter.

trevnhil
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Re: How much the state pension is going up next year revealed - as retired Brits get another inflation-busting rise

Post by trevnhil » Sat Nov 17, 2018 11:06 am

And of course we all know people who paid into the Government Pension scheme all of their lives, but died before reaching Pension age, and so got nothing :-)
Trev..

Hudswell
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Joined: Wed Dec 28, 2016 9:24 pm

Re: How much the state pension is going up next year revealed - as retired Brits get another inflation-busting rise

Post by Hudswell » Sat Nov 17, 2018 11:07 am

Which is a perfectly logical step to take. Pension provision is a risk, private or state provided..the value of the money you "paid in" depletes over time surely? The "pot" we all paid into certainly would not pay out the dividends you receive today. I only hope future generations receive the same pensions benefits as we do/hopefully will!
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Uncle D
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Location: Lasa

Re: How much the state pension is going up next year revealed - as retired Brits get another inflation-busting rise

Post by Uncle D » Sat Nov 17, 2018 12:00 pm

Hudswell wrote:
Sat Nov 17, 2018 10:09 am
Uncle D wrote:
Sat Nov 17, 2018 8:18 am
galexinda wrote:
Fri Nov 16, 2018 6:24 pm
What about all the ladies who have had their retirement messed up by the way the pension age was increased from 60 to 66? The UK government has made a huge saving at the expense of many women.
Exactly at today's 130 per week my wife stands to lose 40,500 over the extra 6 years she has to wait, I also lose 6,750 for the extra year and that's is if the government don't decide to move the goalposts again.
I am glad that I am not paying any taxes or N.I. in that country anymore.
And what do you suggest the Government do ? The population is aging and lasting longer! and the currant State pension was rapidly becoming unaffordable, it simply had to change. There will always be winners and losers, the winners are our kids and grandkids who might actually get some form of State pension, and yes it hit the losers hard, a small minority especially. But in the main the new regulations will allow people to plan based on different retirement ages, setting expectations. In our Cypriot planning we "expected" to be able to join the "Health" service when my wife hit 60, she will now be 67 when that happens, I actually Reach state retirement age before her now...by four years..an extra 4 years of expensive health insurance, in addition of course to the "losses" from our state pension. But sorry I would rather that than see future generations go without, or suffer more because their taxes are increased to pay for me, for you.
Just trying to put things into perspective about the meagre increase in state pension at the moment.
One of the excuses the government at the time gave was that women want equality so they did it by taking their pension away for 5 years, then 6. Still no equality in pay though with an average of 8.7% difference between men and women doing the same job.
Glad to see that you are worried about future generations though, we will see how they fair over the next decade or so

Hudswell
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Joined: Wed Dec 28, 2016 9:24 pm

Re: How much the state pension is going up next year revealed - as retired Brits get another inflation-busting rise

Post by Hudswell » Sat Nov 17, 2018 12:07 pm

It may be "meagre" Uncle D, but it is in proportion to the economy and what the country can afford. And I really do not think "equalising" pension ages was an excuse...equality was demanded by the equalities lobby, sometimes you don't get what you wish for...but yes I do agree more needs to be done in regard to equality across the board.
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Uncle D
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Re: How much the state pension is going up next year revealed - as retired Brits get another inflation-busting rise

Post by Uncle D » Sat Nov 17, 2018 12:56 pm

Hudswell wrote:
Sat Nov 17, 2018 12:07 pm
It may be "meagre" Uncle D, but it is in proportion to the economy and what the country can afford.
However, the country can afford the spiralling costs of Trident and HS2, but I appreciate your point

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