Flat-rate State Pension - Opinions?

[formant]

BBC News - Flat-rate state pension 'expected to start in 2017'

Strikes me as yet another seriously flawed and inconsistent approach. :-/

[formant]

If a future government turns the system back to means-tested (not terribly unlikely) it's really just another tax-increase.

Not sure why people who choose not to work/ have gaps in their employment should be entitle to the same pension as someone who's paid in all his/her life.
Also not pleased about penalising those on final-salary schemes (my other half is in one).

[Lockhouse]

As they change the rules every two minutes, who can blame people for not investing in a pension? I'm putting my cash anywhere but.

[The Spartan]

As they change the rules every two minutes, who can blame people for not investing in a pension? I'm putting my cash anywhere but.

WHS

Pensions are a sham, especially having to pay for Public Sector pension and the idle

[DimPrawn]

As they change the rules every two minutes, who can blame people for not investing in a pension? I'm putting my cash anywhere but.

In a nutshell.

And I'm sure if YOUR pot saved is bigger than average you will be labelled GREEDY, and the tax you didn't pay legitimately will be levied on the pot in the name of FAIRNESS to others.

On that basis and the fact you can't get your hands on it when you might need to, I'm out*


* If you are an employee and you have a final salary pension or your employer chucks loads of money in it as part of your package it might be a different story.

[formant]

Yeah. I'm sort of puzzled by the idea that this is meant to beneficial to the long-term self-employed. I mean surely, you should think of a plan B if your self-employment isn't lucrative enough for you to make private pension arrangements of some sort. Surely you're doing something wrong, if after a life of self-employment you're going to rely on those 144 quid/week. No?

[eek]

Yeah. I'm sort of puzzled by the idea that this is meant to beneficial to the long-term self-employed. I mean surely, you should think of a plan B if your self-employment isn't lucrative enough for you to make private pension arrangements of some sort. Surely you're doing something wrong, if after a life of self-employment you're going to rely on those 144 quid/week. No?

You're looking at it from the prospective of an expensive IT consultant. Many self employed people earn far far less than we do.

[formant]

You're looking at it from the prospective of an expensive IT consultant. Many self employed people earn far far less than we do.

No doubt, but then is it really smart to do that long-term?

Also worth considering that a lot of self-employment consists of lifestyle-businesses, never designed to make anyone a fortune. Why reward that?

[eek]

No doubt, but then is it really smart to do that long-term?

Also worth considering that a lot of self-employment consists of lifestyle-businesses, never designed to make anyone a fortune. Why reward that?

Because its far cheaper to give everyone x rather than topping it up which costs a £1bn for admin on top and still doesn't reach many who should get the money),

The state pension should give everyone enough to live on without form filling (as an aside Age Concern are brilliant at filling the forms in) as that would save money (its the reason why winter fuel and travel cards are universal benefits).

At the end of the day this is supposed to be a universal pension for those who reached the age at which a significant majority of people are unable to work. Does it really matter what people did prior to reaching that age?

[rootsnall]

it's really just another tax-increase

You've sussed it ! I very very much doubt the old age pension won't be means tested in 20 years time so I wouldn't factor it in to your retirement unless you'll be living off the state. The worry is that the majority of the UK will be living off the state, or attempting to.