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£140 pensions for all

Community Veteran
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£140 pensions for all

Seems discussions are taking place regarding a sum of £140 being paid to most pensioners around 2015-16.
What I do not get is the bit regarding existing pensioners being excluded from this.
I Know it's all at the discussion stage but where is the logic in excluding existing pensioners. The main group to miss out will be women who have taken time out to raise a family and currently get the state pension.
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Community Veteran
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Re: £140 pensions for all

I'd guess that basic State Pension would evolve to be £140pw by 2015-2016 (with inflation running as it is).
Community Veteran
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Re: £140 pensions for all

I'm useless at maths but guess it would be well below that figure based on the current inflation rate !
No doubt some kind person can do the maths on this for us.
David_W
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Re: £140 pensions for all

It's the age of austerity so you may have got that wrong, we'll retire at 140 and be paid £66 a week pension  Crazy
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Re: £140 pensions for all

That sounds about right Cheesy
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Re: £140 pensions for all

Quote from: gleneagles
I Know it's all at the discussion stage but where is the logic in excluding existing pensioners.
The main group to miss out will be women who have taken time out to raise a family and currently get the state pension.

I don't see any connection between those 2 points, or maybe none was intended?  Undecided
Surely the rules have changed quite significantly regarding women's contributions, firstly in terms of "home responsibilities" credits and secondly reducing qualifying years, so I also doubt point 2 at all (looking forwards).
My own other half is past retirement age (though still working as she wants to) and took over 10 years off work to raise our children, but definitely qualifies for a full state pension in her own right.
geoffp0
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Re: £140 pensions for all

I don't know if it still happens now but once upon a time women could pay only a half a stamp whilst working, a friend of mine done this and a few years ago when she retired and applied for her pension she had the biggest shock of her life when she was told that she did not qaulify for a pension as she only paid a "Half Stamp" I think there are a lot of women in that position Cry
Geoff
jmd
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Re: £140 pensions for all

I have married friends who are in that position as years ago when you got married you just paid the reduced national insurance "stamp" automatically, and then when the option came [I think it late 80s] to pay full contribution many married ladies were only working part time so opted to continue as they were.  It was noit recognised at the time what the effect would be on pension and I know one of my friends struggles a lot as her husband was out of work for many years and so  they only have a very basic amount of pension [topped up by pension credit].
Having always been single I have not been in that situation fortunately.
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Re: £140 pensions for all

Quote from: jmdlp
when the option came [I think it late 80s] to pay full contribution (1)
very basic amount of pension [topped up by pension credit] (2)

I'm absolutely certain (1) was a very long time before that, or SWMBO would not have the entitlement she does.
And (2) has been around since about 2003 I think, something to give GB credit for?
jmd
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Re: £140 pensions for all

Like I said I thought it was late 80s but actually it was 1977 [found it on Google after posting!] when it was changed and married women would pay full rate national insurance.
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Re: £140 pensions for all

@jmdlp, as I said it WAS LONG BEFORE1977 that (using your words)
Quote from: jmdlp
married women could pay full rate national insurance.
or SWMBO would be affected, but she definitely wasn't.
The option was REMOVED in 1977 (with exceptions), married women could and did pay full "stamp" long before that - I know my wife did!
Here's a quote from a parliamentary briefing which should clarify:
"Before 1977, married women were able to choose to pay reduced National Insurance contributions in return for not accruing entitlement to contributory benefits, such as the state retirement pension, in their own right. The option was removed for marriages on or after 6 April 1977, but women who had already married were given the option of retaining it."
For more details see: http://www.parliament.uk/briefingpapers/commons/lib/research/briefings/snbt-01910.pdf
jmd
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Re: £140 pensions for all

OK - you are right.
However, many married women in the 50s/60s/70s worked part time and so the lower rate made a difference to what they took home,  and when the change came opted to stay on the "married women contribution" as it was a cheaper option at the time - this is what several of my colleagues did in local government and other married friends.  I seem to recall that at the time it was not pushed by many employers as it kept their wage bills down. Women too then were not covered by equal pay laws in same way as now and so even full time work was poorly paid in many cases. I know when I moved to the Civil Service in 1978  that the Union were very keen to remind women of situation that they would face when they came to retire so many did alter what they paid.
But for those in  jobs with low pay it was more difficult to make this decision -  a friend of mine worked as a sewing machinist part time and continued to pay the lower rate.  She retired before her husband but then he was made redundant in his late 50s so they were on very reduced income for some years - she now wishes that she had opted to change but her employer had discouraged his staff to do so!
On another note, my great aunt [who died 17 yrs ago aged 103] decided when the National Insurance Stamp came in that even though she was not working would pay for a stamp[at 6d a week] until she was 60 [about 4 yrs] as the Government guaranteed a pension if you had paid - so she got her pension for 43 yrs for a very small outlay! 
itsme
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Re: £140 pensions for all

I can't see how paying a reduced  married woman rate kept the wage bill down for the employer as I assume that the employer contribution did not change. Otherwise I could see the employer pressurising all married woman to go on the reduced rate. It's not the employer responsibility to advise on this as it would require information of the husband's situation.
geoffp0
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Re: £140 pensions for all

WOW! at a total loss now, just had a letter from the pensions dept. telling me that I have got a pension increase of £7 pw mind you probably 30% of that will go in tax, so what do I buy now, maybe an extra pork chop for Sunday dinner or maybe an extra Viagra tablet Grin anyway thank you Mr Chancellor.
Geoff Undecided
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Re: £140 pensions for all

Better than the 75p that Clown Brown tried to con the pensioners with Sad