State Pension Changes NI Contributions

[glasgowcyclist]

Martin Lewis is explaining it now, for some people its 44 years of contributions.

I’m trying to access the SP forecast site now. Cheers Martin!

 

[Slick]

I’m trying to access the SP forecast site now. Cheers Martin!

View attachment 694632

I did mine after reading this thread.

 

[PaulSB]

Its an interesting watch.

One example of a group of people requiring 44 years of contributions to access full pension is those who opted out during the 80's. Apparently, this group reduced their NI contributions and redirected this to a company pension.

Yes, I heard him say this and I think he's wrong. My understanding is one could not opt out of the SP but one could opt out of State Earnings Related Pension Scheme. This scheme, usually known as SERPS, was intended to allow higher earners to receive a second, separate, SP payment.

The opting out began when it became apparent some private schemes or other public schemes offered a potentially better return. If one was in such a scheme one could opt out of SERPS and pay the equivalent in to your own scheme.

In my case I opted out to Standatd Life. My wife, NHS employee, was automatically opted out as the NHS scheme is/was superior to SERPS.

 

[Ming the Merciless]

Did you mean to reveal your full name and date of birth @Slick ?

 

[Slick]

Yes, I heard him say this and I think he's wrong. My understanding is one could not opt out of the SP but one could opt out of State Earnings Related Pension Scheme. This scheme, usually known as SERPS, was intended to allow higher earners to receive a second, separate, SP payment.

The opting out began when it became apparent some private schemes or other public schemes offered a potentially better return. If one was in such a scheme one could opt out of SERPS and pay the equivalent in to your own scheme.

In my case I opted out to Standatd Life. My wife, NHS employee, was automatically opted out as the NHS scheme is/was superior to SERPS.

Its probably down the my poor understanding, but I think that is pretty much what Martin said.

 

[Slick]

Did you mean to reveal your full name and date of birth @Slick ?

I will remove it.

 

[Slick]

I’m trying to access the SP forecast site now. Cheers Martin!

View attachment 694632

Mrs Slick just got the same message.

 

[SpokeyDokey]

I’m trying to access the SP forecast site now. Cheers Martin!

View attachment 694632

Inevitable I guess.

 

[SpokeyDokey]

At a tangent: I do think it is shoddy the way some pensioners are treated re wholesale changes to the underlying State scheme.

The NSP was very messily communicated imo and it's no wonder there is still some confusion.

Ditto the harmonisation of female and male pensions - correct in principle imo but it has put a lot of women in difficult positions when their expectation of an SP at age 60 was dashed.

Mrs SD has recently turned 60 and, in all honesty, it makes very little difference to us but to some we know it completely altered their futures.

Maybe a gradually phased in approach would have been better, rather than a cliff edge cut-off.

 

[neil_merseyside]

At a tangent: I do think it is shoddy the way some pensioners are treated re wholesale changes to the underlying State scheme.

The NSP was very messily communicated imo and it's no wonder there is still some confusion.

Ditto the harmonisation of female and male pensions - correct in principle imo but it has put a lot of women in difficult positions when their expectation of an SP at age 60 was dashed.

Mrs SD has recently turned 60 and, in all honesty, it makes very little difference to us but to some we know it completely altered their futures.

Maybe a gradually phased in approach would have been better, rather than a cliff edge cut-off.

Ladies pensions did phase in, over many, many years just the same as the 65-67 change was/is phasing .

 

[SpokeyDokey]

Ladies pensions did phase in, over many, many years just the same as the 65-67 change was/is phasing .

I know, sorry didn't explain myself properly. Although it wasn't many, many years.

It may have been better if they received a reduced amount for the intervening years rather than the sharp cut-off.

Probably applies to all the phased changes I guess.

Increased cost for sure but many millions were saved by the shift away from 60 being the female retirement age.

 

[Pat "5mph"]

Ladies pensions did phase in, over many, many years just the same as the 65-67 change was/is phasing .

Incorrect: I clearly remember my friend, who is 8 years older than me, receiving a letter a few months before her 60th birthdays, saying that her retirement age was now to be 66.
No warning before that letter.

 

[SpokeyDokey]

Incorrect: I clearly remember my friend, who is 8 years older than me, receiving a letter a few months before her 60th birthdays, saying that her retirement age was now to be 66.
No warning before that letter.

That's awful.

My wife had a several years notice.

 

[rualexander]

Incorrect: I clearly remember my friend, who is 8 years older than me, receiving a letter a few months before her 60th birthdays, saying that her retirement age was now to be 66.
No warning before that letter.

Maybe no warning in the form of a letter, but it's been known since the 90s that women's pension age was being aligned with men's so not exactly a surprise.

 

[neil_merseyside]

The warning was all over TV for years