Online Parliamentary Information Office 2012: There seem to be a few mistakes in the article and several omissions.
The article states there are about one million higher earners approaching retirement who can expect to receive a combined pension of £ 160 a week,1) No mention of contracted out pension which in some cases will almost reduce the flat rate pension back to the basic pension so that there will be millions of people who will receive less than £140 per week. 2)No mention that everyone in contracted out schemes will loose their NI rebate of 1.4% and that their employer will also loose their rebate of 3.4% which might make them reduce the level of pension they receive.3)At the moment a person has to only pay into the current scheme for one year to qualify for 1/30 of basic state pension. When the flat rate scheme starts they will have to pay at least seven years National Insurance which will give them 7/30 of basic state pension so anyone who pays less than 7 years NI will not receive any pension.4) At the moment people can inherit at least 50% of their spouse/partners state second pension when they die. I believe this will stop when the flat rate pension starts.5)The figure of £160 is a rather low for high earners as it is possible to have a total pension up to about £269 when adding together basic state pension,state second pension and contracted out pension .6)The pension of £20 quoted by Steve Webb is to low as it could be anything up about £130 less when they retire.
Online Parliamentary Information Office 2012: We're always being told that NI is a 'pay as you go system' - I guess the difference now is that 'you pay' and then the Govt 'tells you where to go' when it's time for them to pay out!
Other topic review at parliamentary information office.
The article states there are about one million higher earners approaching retirement who can expect to receive a combined pension of £ 160 a week,1) No mention of contracted out pension which in some cases will almost reduce the flat rate pension back to the basic pension so that there will be millions of people who will receive less than £140 per week. 2)No mention that everyone in contracted out schemes will loose their NI rebate of 1.4% and that their employer will also loose their rebate of 3.4% which might make them reduce the level of pension they receive.3)At the moment a person has to only pay into the current scheme for one year to qualify for 1/30 of basic state pension. When the flat rate scheme starts they will have to pay at least seven years National Insurance which will give them 7/30 of basic state pension so anyone who pays less than 7 years NI will not receive any pension.4) At the moment people can inherit at least 50% of their spouse/partners state second pension when they die. I believe this will stop when the flat rate pension starts.5)The figure of £160 is a rather low for high earners as it is possible to have a total pension up to about £269 when adding together basic state pension,state second pension and contracted out pension .6)The pension of £20 quoted by Steve Webb is to low as it could be anything up about £130 less when they retire.
Online Parliamentary Information Office 2012: We're always being told that NI is a 'pay as you go system' - I guess the difference now is that 'you pay' and then the Govt 'tells you where to go' when it's time for them to pay out!
Other topic review at parliamentary information office.
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