Decent pension increase but only if you reside in the UK

[nam-thip 1]

'Decent' state pension rise planned

 

The state pension is to rise to around £140 a week, far more than at present, it has been reported.

The proposal, to be detailed in a Green Paper before the end of the year, would particularly benefit women, the Daily Mail has said.

The Department for Work and Pensions (DWP) confirmed there would be proposals for reform later this year and said the aim was to provide a "decent" pension.

The plan would end the indignity of means testing and, according to coalition sources, pay for itself, largely by reducing bureaucracy, the newspaper reported.

The present basic state pension is paid at £97.65 for a single person and £156.15 for a couple with a means-tested top-up for the poorest to give every pensioner a minimum income.

A new 'single tier' pension which would replace all existing payments would give an income of £7,280 per year or £14,560 for a pensioner couple, if paid at £140 a week, the newspaper said.

The move would be particularly good for women, who often fail to qualify for the full basic pension because they have stopped working to bring up children, and lack sufficient National Insurance contributions.

Instead it would be based on ‘residency in Britain’, it said. The new pension would come in towards the end of this Parliament, in 2015.

A DWP spokeswoman said: "The Chancellor has confirmed that the Government will improve the quality and accessibility of pensions in the Spending Review period.

"We will be bringing forward proposals for reform in a Green Paper later this year. Our aim will be a simple, decent state pension for future pensioners, which is easy to understand, efficient to deliver and affordable."

[Bazle 1,500]

'Decent' state pension rise planned

 

The state pension is to rise to around £140 a week, far more than at present, it has been reported.

The proposal, to be detailed in a Green Paper before the end of the year, would particularly benefit women, the Daily Mail has said.

The Department for Work and Pensions (DWP) confirmed there would be proposals for reform later this year and said the aim was to provide a "decent" pension.

The plan would end the indignity of means testing and, according to coalition sources, pay for itself, largely by reducing bureaucracy, the newspaper reported.

The present basic state pension is paid at £97.65 for a single person and £156.15 for a couple with a means-tested top-up for the poorest to give every pensioner a minimum income.

A new 'single tier' pension which would replace all existing payments would give an income of £7,280 per year or £14,560 for a pensioner couple, if paid at £140 a week, the newspaper said.

The move would be particularly good for women, who often fail to qualify for the full basic pension because they have stopped working to bring up children, and lack sufficient National Insurance contributions.

Instead it would be based on ‘residency in Britain’, it said. The new pension would come in towards the end of this Parliament, in 2015.

A DWP spokeswoman said: "The Chancellor has confirmed that the Government will improve the quality and accessibility of pensions in the Spending Review period.

"We will be bringing forward proposals for reform in a Green Paper later this year. Our aim will be a simple, decent state pension for future pensioners, which is easy to understand, efficient to deliver and affordable."

I wonder if that means that Brits who have retired abroad (outside the EU) will lose their state pensions altogether?

[nam-thip 1]

I wonder if that means that Brits who have retired abroad (outside the EU) will lose their state pensions altogether?

 

 

Good question and one worth making an enquiry on for those that reach retirement age around the time it's introduced.

Edited October 25, 2010 by nam-thip

[Bush Pig 11]

'Decent' state pension rise planned

 

The state pension is to rise to around £140 a week, far more than at present, it has been reported.

The proposal, to be detailed in a Green Paper before the end of the year, would particularly benefit women, the Daily Mail has said.

The Department for Work and Pensions (DWP) confirmed there would be proposals for reform later this year and said the aim was to provide a "decent" pension.

The plan would end the indignity of means testing and, according to coalition sources, pay for itself, largely by reducing bureaucracy, the newspaper reported.

The present basic state pension is paid at £97.65 for a single person and £156.15 for a couple with a means-tested top-up for the poorest to give every pensioner a minimum income.

A new 'single tier' pension which would replace all existing payments would give an income of £7,280 per year or £14,560 for a pensioner couple, if paid at £140 a week, the newspaper said.

The move would be particularly good for women, who often fail to qualify for the full basic pension because they have stopped working to bring up children, and lack sufficient National Insurance contributions.

Instead it would be based on ‘residency in Britain’, it said. The new pension would come in towards the end of this Parliament, in 2015.

A DWP spokeswoman said: "The Chancellor has confirmed that the Government will improve the quality and accessibility of pensions in the Spending Review period.

"We will be bringing forward proposals for reform in a Green Paper later this year. Our aim will be a simple, decent state pension for future pensioners, which is easy to understand, efficient to deliver and affordable."

 

Well this will certainly help to keep the economy and pound down.

 

Next stop third world.

[chris2004 67]

I have only seen the wording a residency or citizenship 'test' to get the new pension. I have not seen any detail as to what that test will mean in practice. If it really excludes all those pensioners reside outside Britain then millions of people will lose their pension (including me). Is it really that bad? Guaranteed to lose the Tories lots of votes.

[Bush Pig 11]

I have only seen the wording a residency or citizenship 'test' to get the new pension. I have not seen any detail as to what that test will mean in practice. If it really excludes all those pensioners reside outside Britain then millions of people will lose their pension (including me). Is it really that bad? Guaranteed to lose the Tories lots of votes.

 

The UK and most Euro pension systems are unsustainable or already bankrupt so expect to see them either phased out or reduced into the future.

 

The longer the pension jokes are allowed to bankrupt the economy the lower the currency will go.

 

The party's over - forever.

[bratpack 91]

I have only seen the wording a residency or citizenship 'test' to get the new pension. I have not seen any detail as to what that test will mean in practice. If it really excludes all those pensioners reside outside Britain then millions of people will lose their pension (including me). Is it really that bad? Guaranteed to lose the Tories lots of votes.

 

 

If one lives in Thailand then you are still a citizen and are allowed full pension if sufficient funds are paid in when working.This comes in on 2015 so plenty of time to check things out.

[CheshireTom 1,377]

If one lives in Thailand then you are still a citizen and are allowed full pension if sufficient funds are paid in when working.This comes in on 2015 so plenty of time to check things out.

 

The theory is that by 2015, the amount you've paid in NI contributions will count for nothing.

[Bazle 1,500]

It will be very interesting to see the proposals when they are published in full.

 

There is talk about entitlement being based on residency, but it is not clear (at least to me) whether that is (i) residency during your life prior to pension age or (ii) residency when retired.

 

If (i), how will they cope with Brits who have spent a lot of their working lives abroad and paid voluntary NI contributions in order to maintain their pension entitlements?

 

If (ii), how will they cope with Brits who have retired abroad, and elderly non-Brits who would come to the UK to claim a pension?

Edited October 29, 2010 by Bazle

[bratpack 91]

Will this be a 2 tiered system whereby if u dont reside in a eu country then you get the basic state pension,as this 140 quid stops the mean testing for low income people residing in the uk

[chris2004 67]

I suspect i will be deemed resident for tax purposes i.e. i will still have to pay UK tax, but non resident for pension purposes i.e. will get no pension the bastards.

[nam-thip 1]

At present the UK pension is payable through having 30 years worth of stamps to your credit but in the year 2015 that will no longer be the case.

 

At the moment certain (low income) individuals can claim additional pension payments through means testing which can take a single person from the basic state pension of £97 to a maximum of £132.

 

According to the government means testing costs millions and doing away with it will help pay for the increase.

 

No matter how many times i read the government statement on pension reforms and newspaper articles relating to the subject the only way i can see a UK naional qualifying is by residing in the UK.

[jacko 8,822]

I suspect i will be deemed resident for tax purposes i.e. i will still have to pay UK tax, but non resident for pension purposes i.e. will get no pension the bastards.

The rules for non-residency these days are nigh on impossible. You really have to sever all ties, down to bank accounts. They are very quick to deem you non-resident for National Health services though. Whilst working overseas I have made some effort to ensure I still qualify for a full pension, but more recently they seem to deliberately be obtuse. I wish I had put the payments into the bank rather than the black hole known as the IRS. Edited October 31, 2010 by jacko

[Bush Pig 11]

Either the failed Welfare State is dismantled in which case pensions are consigned to history's rubbish bin and the pound rises or the failed Welfare State continues to be propped up by printing ever more worthless pounds and the currency continues to fall.

There is never a ''have your cake and eat'' it easy way out.

[samfreeland 64]

Either the failed Welfare State is dismantled in which case pensions are consigned to history's rubbish bin and the pound rises or the failed Welfare State continues to be propped up by printing ever more worthless pounds and the currency continues to fall.

There is never a ''have your cake and eat'' it easy way out.

but then what do the people on welfare do . are we supposed to step over them sleeping/ begging on the street and being a general nuisance. may as well move to India.

[jacko 8,822]

but then what do the people on welfare do . are we supposed to step over them sleeping/ begging on the street and being a general nuisance. may as well move to India.

Perhaps the grand plan is to get them to move back to India.....

[Bush Pig 11]

but then what do the people on welfare do . are we supposed to step over them sleeping/ begging on the street and being a general nuisance. may as well move to India.

 

 

Contrary to the PC Nanny-State bullshit line welfare does not reduce homelessness, crime or other undesirable activities it actually leads to their increase (don't expect the socialist politicians or their army of social workers to let that little fact get out).

 

The biggest industry and portion of government spending is now Welfare Waste.

 

Add to that the hard working tax slaves who then become the working poor in order to support the parasite class and you end up with economic collapse plunging exchange rates, rising deficits, crime etc, etc. Sound familiar?

 

You have also created a society that welcomes parasites from around the world to feed on the carcass.

 

And so the downward spiral continues to gather pace.

[fiferx 3]

For me, the big problem with this increased State Pension is that it will only apply to those who retire after its introduction. People such as myself who are already getting the pension will not be eligible for this new increased pension.

 

Jim

[Bazle 1,500]

The rules for non-residency these days are nigh on impossible. You really have to sever all ties, down to bank accounts. They are very quick to deem you non-resident for National Health services though. Whilst working overseas I have made some effort to ensure I still qualify for a full pension, but more recently they seem to deliberately be obtuse. I wish I had put the payments into the bank rather than the black hole known as the IRS.

HMRC are working on a statutory residency test - a test which will determine whether you are or are not resident in the UK. At the moment, the matter is somewhat subjective.

 

One reason it is taking so much time to bring this to fruition is that it would be applied across the board - for tax, for NIC, for all legislation which refers to residence. At the moment, different rules have evolved from case law for different matters which, strictly, should not have happened.