The Pension Reform Again

Sorry for blogging about this topic again so soon, but I want to express the frustration that people of my age group are feeling because of the uncertainty about the way we will be affected.

The Daily Telegraph personal finance pages have been very helpful in answering queries, in contrast to The Guardian, which has been uninformative on the nitty gritty of the issue.

I’d assumed that I would be able to claim the new pension by deferring claiming until I’m 65 in 2017, but from the information provided by the DT, I gather I will not be eligible even if I do defer.  Well, never mind; if I defer taking the state pension for two years nine months (the difference between my entitlement date and my 65th birthday), then my old pension, with uplift for deferring, will not be much less than the new one.

In fact, it seems my husband is the real loser. He is also 65 in 2017 and so he will get the new single tier pension, but he won’t be automatically entitled to the full amount for two reasons. Firstly, he only has 30 years contributions, enough for the old pension but not enough for the new one.  He has time to buy the five years before 2017, but it is not at all clear how much he will have to pay. Secondly, his pension will be reduced because of his membership of opted out pension schemes and it’s not clear whether or not he will be able to make the shortfall to get the full single-tier pension, but it looks as if he probably won’t.

We are lucky.  Whether or not we get the old or new pension is not the difference between being comfortably off and poverty.  For some people it might be.  Nevertheless uncertainty about our retirement income at this point in time is most unwelcome.

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1 Comment »

  1. Jake Boyd said

    Hi from down here in the USA. I feel your dispair. My pension was terminated after I had retired from Delta Air Lines. Delta’s method was to use Chapter 11 bankruptcy laws to terminate ONLY the retired DELTA pilots pensions. Now Delta and Northwest airlines have merged and Delta survives and the former Northwest retired pilots continue to receive their pensions.. Not fair so we retired guys are trying to gain an audience with new Delta management by circulating a petition. Please take a moment to look at our petition (click on the petition tab to read actual letter) and please add you support by signing the petition and adding your comments. This is the link to the petition http://www.thepetitionsite.com/627/208/216/
    If you could blog our information so others can help us in our efforts, it will be greatly appreciated.

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