State Pension Increases

[SilverFox2]

Quite right too.

Why?

 

[denislawsbackheel]

Why are they differant?
What is CPI and why does it differ?
Trying to understand how it is correct to have my NI contributions considered to be of less/more value than the new one which presumably has suffered exactly the same devaluation last year.
Incidentally last year my full pension received the full 10.1 percent increase.

Cos last year it was based on the triple lock highest figure of CPI which was 10.1% so state pension went up 10.1% and SERPS went up 10.1%
This year the state pension went up by average wages - 8.5% whereas SERPS went up by CPI - 6.7%
CPI is the consumer price index, a way of calculating inflation.
It has always been thus

 

[Mr Kobayashi]

Why?

Because it would be a move towards making state pensions unaffordable without placing a greater burden on working tax payers.

Also the new state pension requires 35 years contributions for full eligibility, the old one was revised down to 30.

 

[BrianW]

CPI is a less generous measure compared to RPI.

That's why pensions go up by CPI but your broadband goes up by RPI plus something on top.

Last I heard MPs' pensions were still on RPI. Fancy that!

 

[SilverFox2]

Because it would be a move towards making state pensions unaffordable without placing a greater burden on working tax payers.

Also the new state pension requires 35 years contributions for full eligibility, the old one was revised down to 30.

Luckily I took out private pensions to supplement my State pension so to some extent I agree.

Perhaps we should also only allow state pensions and benefits to those who contribute like real pensions and insurance schemes?

I intend to fight for every penny to get back my state deductions from my lifetimes working salaries even though it's origdinal value has been eroded.

 

[Kompany Car]

Isnt the answer to unaffordability of the state pension, making NI contributions compulsory regardless of if its coming out of a pension, just like income tax is.

 

[SilverFox2]

Isnt the answer to unaffordability of the state pension, making NI contributions compulsory regardless of if its coming out of a pension, just like income tax is.

I agree.
Tax and death seem to be inevitable.
National Insurance is surely a tax that varies according to one's income during a shortened working life.
Income tax continues into the rest of one's life.

Avoiding paid work seems the only way to avoid paying into the system.

 

[denislawsbackheel]

Luckily I took out private pensions to supplement my State pension so to some extent I agree.

Perhaps we should also only allow state pensions and benefits to those who contribute like real pensions and insurance schemes?

I intend to fight for every penny to get back my state deductions from my lifetimes working salaries even though it's origdinal value has been eroded.

You really need to read up about SERPS, private pensions, benefits accrued etc before embarrassing yourself further.
Oh, and you can only get a state pension of any sorts after ten full years NI contributions, and a full one only after 35 years full NI contributions.

 

[denislawsbackheel]

I agree.
Tax and death seem to be inevitable.
National Insurance is surely a tax that varies according to one's income during a shortened working life.
Income tax continues into the rest of one's life.

Avoiding paid work seems the only way to avoid paying into the system.

And if you do that you get no state pension.

 

[kaz7]

I tried checking what pension i am due on the gov website but they wanted my live capture, photo of my drivers licence , what i had for breakfast and a smear test , i gave up , will be a surprise i guess