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Original poster

Change to pensions benefitting SAHMs and married couples...

55 replies

SpawnChorus · 25/10/2010 08:11

Is this some sort of lame attempt to appease us for the loss of Child Benefit?

I don't believe for one second that I will actually recieve any state pension when I reach retirement age.

OP posts:
Chil1234 · 25/10/2010 08:27

Damned if they do and damned if they don't, eh?

Original poster
SpawnChorus · 25/10/2010 08:37

lol yes, those poor much-maligned tories.

OP posts:
longfingernails · 25/10/2010 08:39

Politically, it is a good idea. It keeps pensioners, who vote, voting Tory.

Administratively, too, it is a good idea. The amount essentially wasted as it is spent on administering various "credits" is almost criminal.

However, I do think it needs to be looked at carefully. If it means that pensioners who have been paying into SERPS all their lives will get the same as pensioners who have taken swanky holidays and gone on spending sprees instead then I am not sure I entirely approve.

dreamingofsun · 25/10/2010 09:42

Does anyone know what happens about SERPS? will it continue and will we get any benefit from paying it?

ISNT · 25/10/2010 09:45

link?

Alibabaandthe40nappies · 25/10/2010 11:08

This would help no end of single female pensioners, whether they have always been single or are widowed.
As the article points out, those who are better off and have additional private provision would pay tax on the increase anyway.

The cost of means testing is extremely high and anything which removes it and means that money can go directly to individuals is a good thing.

ISNT · 25/10/2010 11:31

Why is it that state benefits to pensioners are described as earnings while state benefits to others are described in very different terms?

expatinscotland · 25/10/2010 11:35

Like the OP, I don't believe I'll get FA.

A ploy to hand over more money to current pensioners whilst at the same time telling everyone to get slaving to pay for it all, even though we'll get nothing nor will our children.

scaryteacher · 25/10/2010 11:48

ISNT, because you pay tax on them.

ISNT · 25/10/2010 11:51

Other benefits are taxed and they are not described as earnings. It seems strange.

2shoeprintsintheblood · 25/10/2010 11:53

i'm with expat, i think by the time I "retire" there will be no state pension

fsmail · 25/10/2010 13:27

I don't believe the state pension will ever go (too political and necessary) at least in my lifetime but it will be better later and I would rather see the end to means testing.

agedknees · 25/10/2010 18:59

I think there will be a state pension when I retire, but I think I won't be allowed to retire until i'm 85!!!

RU4real · 25/10/2010 23:03

Really think that it is fine for people to continue working when throughout working life, work adapts to their changing needs. However, as this is not the case for those people who depend upon state pension... then(as with all aspects of coalition cuts) I really wait with bated breath for the day when we stop hearing political BLAH! about how "well off" people are on benefits and start facing up to the truth of how appaulingly bad people's wages are.

lurkingsnurker · 25/10/2010 23:03

Removing means testing is a good thing - the current pensions credit system is pretty diabolical and discourages saving.

However, stealing the additional state pension from all those that have paid for it is criminal - it is supposed to be based on your NI contributions, and is a little something back for all those who work and contribute throughout their lifetime.

Opting out seems like a damned good idea right now - if only I could find an insurance company that isn't too scared to take my money for fear of being accused of mis-selling! Oh, the irony...

WilfShelf · 26/10/2010 00:14

I will be delighted if it has the outcome of improving the well-being of women in later life who suffer badly from poverty and inadequate pension provision.

However, sadly, because of the utter shafting of students and poorer younger families, I fear all this will do is heighten intergenerational tension.

thedollshouse · 26/10/2010 07:39

What will happen if you have previously paid into a private pension?

When I started work I automatically opted out of SERPS as I started making contributions to a private scheme. Wish I hadn't bothered as after 13 years contributions my pension will only be worth £545 per year.

Alibabaandthe40nappies · 26/10/2010 07:56

Nothing will happen to your private pension - that will stay as is but there is always the possibility that we will all be required to contract back into SERPS if this suggested universal pension comes in.

mummywahhahamammoth · 26/10/2010 09:32

Something needs to change, as the situation of women who have worked to bring up a family, maybe have had a part time job, and are relying on their husbands contributions are in a sticky situation, especially if they divorce and re marry. I have many friends in this situation, on a pittance and have to work.... even if healthwise they are not up to it, and where are the jobs for pensioners.

fsmail · 26/10/2010 09:36

I am so glad I contracted out when I first could and ignored the advice to go back in. I knew the risk was worth taking. I would rather have the money where I know it is and be able to draw on this at 65. We all have to contract back in in 2012

On the whole though I think the reform is a good idea. The pension credit has only put people off saving.

LeninGhoul · 26/10/2010 09:36

This reply has been deleted

Message withdrawn at poster's request.

witchwithallthetrimmings · 26/10/2010 09:38

it will be effectively funded by increasing NI (those contracting out of SERPS will have to pay more and those not contracted out will lose their enhanced benefits). Does seem a good idea but will they then get rid of NI (at least for workers)?

crazymum53 · 26/10/2010 10:36

My MIL who is a retired divorcee is one of the many pensioners who would qualify for pension credit but doesn't claim it. She stayed at home to look after my OH and then had to take low paid work when her husband walked out. He remarried so she gets no benefit from her exes NI or occupational pension.
My widowed mother would also benefit as well.
I think this would be a good thing as the current NI system does discriminate against women.
I have made voluntary contributions to increase my pension - am not sure whether this was worth it now !

BetsyBoop · 26/10/2010 10:46

I wonder if they are fixing a problem that is in fact disappearing?

HRP came in in 1978, so most women coming up to retirement will have benefitted from that if they were caring for children/disabled family members.

The new carer's credit from April this year covers even more people I think? (Although you only get credits while children are at primary school, which I think is fair enough). The number of qualifying years has been reduced to 30 anyway, which helps a lot of people qualify for a full pension.

A lot of the women affected are those who choose to pay the lower rate of NI (the "married woman's rate") on their income, so I'm not sure why we should give them extra pension now, doesn't seem fair?

I'm all for a reasonable rate of state pension (and frankly £97/wk is not a reasonable rate) but surely it has to be based on the contribution you have made (both in NI terms & the contribution to society)?

They also need to be fair to those who have paid into SERPS, surely they can't just "write it off", that doesn't seem fair either.

We need to see a lot more of the detail me thinks