State Pension Bombshell – Less Than Half British Retirees To Get Full Pension – So the 55 Year Old Plus No Voters Get Their Return – Listen to Gordon Brown at Your peril- He Will Return Towards the End of the GE Campaign To Promise you more Goodies

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January 2014; Three quarters of women fear the struggle to survive in old age over pension uncertainty

Three-quarters of women fear they will struggle to get by when they reach retirement age because their current income is too low for a decent pension, a study shows. Research also showed widespread confusion among working age women over the effect of changes to the pension system and the rising retirement age. The study by the Pensions Advisory Service found that almost four in 10 women did not know when they would be able to draw their pension, because of changes to the qualifying age, and six in 10 had no idea if they had paid enough National Insurance.

Overall, it showed that seven in 10 did not feel confident about making decisions when saving for retirement. Meanwhile 76 per cent do not believe they will have enough income to be financially comfortable once stopping work.

Around 40 million people currently of working age will receive the new single-tier pension, which is due to come into effect in 2016, simplifying the state pension arrangements. It will run alongside the Government’s landmark plans to automatically enrol people into workplace pensions.

Michelle Cracknell, chief executive of the Pensions Advisory Service said: “The odds of women being able to provide for a comfortable retirement are stacked against them from the start. “Women are much more likely than men to have career breaks, work part-time and have low-paid service sector jobs. “The price they pay is an incomplete state pension in their own right and not much, if any, private pension to add to it.” http://www.telegraph.co.uk/finance/personalfinance/pensions/10592474/Three-quarters-of-women-fear-struggle-to-survive-in-old-age-over-pension-uncertainty.html

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April 2014; Government to give life expectancy estimates with pensions advice

Pensions minister Steve Webb has announced plans to give retirees rough estimates of their life expectancy as part of pensions advice from April 2015.

Specialist pensions experts will calculate how long older people have to live, based on their gender, lifestyle and location. The move is a reaction to concerns people will be irresponsible with their pensions, now that there are fewer restrictions around withdrawing their pot in one go.

The news comes a day after Office of National Statistics (ONS) figures revealed people in the UK are living longer, but stark regional contrasts persist. The area with the highest life expectancy is Purbeck in Dorset, where the average woman will now live to 86.6. The figure is 82.9 years for a man in the same region.

In Glasgow life expectancy is 72.6 for men and 78.5 for women.

Webb highlighted this geographical contrast, along with lifestyle considerations, as one of the main reasons behind the policy.

“The idea is that you come to think about retiring, but you don’t know how long that retirement is going to be,” he said. “My idea is to say to somebody, look, someone of your generation, living in this part of the country, you’ve not smoked, you could easily live for 27 years.”

Webb added the consultations would not be bespoke, but based on a chart for people with similar circumstances. He also said the Government was conscious the consultations should not be “crass and insensitive”. http://www.hrmagazine.co.uk/hro/news/1143568/government-life-expectancy-estimates-pensions-advice

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February 2014; The new state pension winners and losers – and what you can do about it

Single-tier pension winners;

• People who contracted out into a personal pension.

• The self-employed. Currently they are only entitled to the basic state pension of £110.15. Under the new system they will get the full £147 provided they notch up 35 qualifying years.

• Women and part-time workers. Broken work histories and low part-time earnings have meant many have not built up full state pension in the past.

Single-tier pension losers

• People who have never contracted out of the state system.

• Young people. Losses increase over time: someone aged 49 on £26,000 a year will be £29 a week worse off, while someone in their mid-30s will be £40 a week worse off by the time they retire, according to the TUC.

• Existing pensioners. Anyone who reaches state pension before 5 April 2016 will be excluded from the single-tier pension. Some could have got more under the new rules
You win and you lose.

• People in private-sector final salary schemes that are contracted out will get more state pension but will pay more national insurance. Employees currently contracted out will see an increase of 1.4% in their NI contributions from 2016 because their schemes will become contracted in.

What can you do

So if you are a pension loser, is there anything you can do about it? Find out what you have built up so far, so you can work out how much more you need to save. To receive an estimate of your future state pension go to; https://www.gov.uk/state-pension-statement

Think about buying extra years. Millions of people may be able to buy up to £25 a week of extra state pension. It is aimed at pensioners and those due to reach state pension age before April 2016, and will allow people to swap a cash lump sum for extra state pension worth between £1 and £25 a week. It is suggested pensioners will be allowed to pay from £900 to as much as £25,000 to top up their pension.

You may be entitled to top up your state pension with voluntary national insurance contributions (NICs). The 2014/2015 top-up is expected to be around £850 for standard class 3 voluntary NICs. However, you have to be eligible. Those entitled to pay class 3 voluntary NICs include everyone who has reached state pension age (though you can only pay for the past six years), plus some other groups. For more information; https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions http://www.theguardian.com/money/2014/feb/10/state-pension-winners-losers-single-tier

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January 2015; Fewer than half retirees will receive full state pension

The government has admitted that fewer than half of all pensioners will receive the full £150-a-week new “flat rate” state pension from 2016 despite promises by the work and pensions secretary, Iain Duncan Smith that it will give workers “clarity” about their retirement income. In response to a freedom of information request, the Department for Work and Pensions said only 45% of the 3.5 million people who will retire between 2016 and 2020 will receive the full £150 a week.

The new single-tier pension will from April 2016 replace the existing two-part system of basic state pension plus the state second pension (also known as Serps). A final figure for the combined pensions will be released nearer to the date of introduction, but is expected to be around £150 a week. However it is confirmed that because millions of workers are “contracted out”, they will not be entitled to the full amount.

Under contracting out, employees used a rebate of national insurance contributions to build up a separate private pension pot. Others, such as mothers and the self-employed, have frequently failed to build up a sufficiently long national insurance record to qualify for the full amount. Under the new system, employees will need to have 35 years’ of NI contributions to obtain a full pension, compared to 30 before. The figures reveal that one in three retiring workers will be paid a state pension of no more than £133.56 a week rather than the £150 many have been led to expect.

A pensions advisor said: It is imperative individuals receive a proper state pension forecast. Without this, they could get a nasty shock when they do reach state pension age.” It is possible to obtain an estimate of the state pension you will get at retirement from, https://www.gov.uk/state-pension-statement which also has information on how to pay in extra now to qualify for the full pension. The government says you are more likely to be contracted out – and therefore not eligible for the full new state pension – if you work in public sector organisations such as the NHS, local councils, the civil service or in teaching; http://www.theguardian.com/money/2015/jan/12/half-pensioners-full-state-pension-government

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January 2015; Less than half British retirees to get full pension

The UK government admits that less than half of all British pensioners will receive their full £150-a-week state pension from 2016. The Department for Work and Pensions says only 45% of the 3.5 million people who will retire between 2016 and 2020 will receive the full annuity. The new single-tier pension will from April 2016 replace the existing two-part system of basic state pension plus the state second pension (also known as Serps).

Now Rodney Shakespeare, a London-based professor of economy and political commentator, believes the pension system is being manipulated. “The pension system is part of a general cutback in state benefits of one source and another. Behind this is a collapse of the real economy, and that is because the UK system like that of Europe and in the Western system generally does not put any money supply into productive capacity. It only puts it into the banks and those who have existing assets and it all ends up in a sucking up of wealth to the one percent.”

“Just about half of the people who are retiring in the next year or two are going to have much less in state pension and they had been conned and they had been deceived. They were allowed in the past, in addition to their taxes not to pay an element of the national insurance pension contribution,” Shakespeare went on to say. Under the new system, employees will need to have 35 years’ of National Insurance (NI) contributions to obtain a full pension, compared to 30 before. The figures reveal that one in three retiring workers will be paid a state pension of no more than £133.56 a week rather than the £150 many have been led to expect. http://www.presstv.com/Detail/2015/01/12/392794/UK

Scotland’s Old Age Pensioners – Driven to Poverty – Sacrificed on the Alter of Bankers Greed and an Uncaring Government

 

 

 

 

 

Mortality Rates & Pensions

Up to the early 1950’s, Scottish mortality rates were broadly comparable with the rest of the UK. But from that time, (attributed to increased levels of deprivation) life expectancy, in Scotland has hardly increased over a period of 60+ years. In England, (over the same period) rates steadily increased year on year and there is now a very significant gap in life expectancy between England & Scotland.

 

 

 

 

England Home Counties & London

Male pensioners, (approximately 1 million) of affluent areas of London & the South East of England enjoy a life expectancy of approximately 80 years. Female life expectancy,(similar in total)is approximately 84 years.

 

 

 

 

 

 

 

Scotland

In Scotland, male life expectancy is approximately 72 years. Female life expectancy is approximately 78 years.

 

 

 

 

 

 

 

 

Scottish Pensioners Ripped Off – Subsidising Pensioners in the South of England

Allow individual pension contribution payments, (through taxation) approximately £60,000, (assume 40 years @ £1500 per annum) are the same for all taxpayers.

Maximum pension payments to male Scots. £6k x 7 years = £42K

Maximum pension payments to male English. £6K x years = £90K

Maximum pension payments to female Scots. £4k x 13 years = £52K

Maximum pension payments to male English. £6K x 19 years = £76K

Summary.

Scottish pensioners are heavily subsidizing pension payments of English pensioners. In his article the, “Artful Dodger”, (Gordon Brown) proves once more that, “liars can figure but, “figures don’t lie”. Ignore the negative hype of the, “No” campaigners we should not be subsidizing pension payments for the rest of the UK. Vote, “Yes” to independence.

 

 

 

 

 

Worrying Statistics

The Office of National Statistics provides, age expectancy for 2010-2012, the years most favourable to England;

London & SE England: Males 80y Females 84y.

Glasgow & West of Scotland; Males 73y Females 78y.

Babies born in Glasgow & West of Scotland that reach age 65y; Males 73% Females 79%, (attrition rates much higher than those enjoyed by males and females in London & S/East England)

27% of males and 22% of females in Glasgow & West of Scotland will contribute to a pension all of their working lives and get NOTHING in return by way of pension, (Nice saving Mr Osborne). Scotland is poorly served by the United Kingdom. We would be much better off running our own affairs.

So as to be fair, I selected one, (similar in population density) conurbation in each country, namely,”Glasgow & West of Scotland & London & S/East England”.

Statistics extracted reflect an accurate snapshot of age expectancy in both countries.

Scotland is much worse off in the UK. Our people are dying much earlier than those in England and life expectancy for 25%+ of our children indicates they may not survive beyond age 65y. 

A damming indictment of the so called fair and equal distribution of resources in the UK. Time we were out of it.

 

 

 

 

 

 

 

Pensions have been severely eroded from the time Gordon Brown changed the rules and tied old age pensions increases to the rate of inflation.

Brown, armed with his insider  knowledge well knew that all was not well with the UK economy and the adverse effects of his change would be to hit pensioners very hard. Indeed the old age pension was increased, in the first year by a miserable 14pence.

 

 

 

 

 

 

The Banking Crisis – Old Age Pensioners – driven to poverty meeting the heavy cost of the Bankers bail out

The financial crisis has had and will continue to have a negative impact on pensions and pensioner poverty will continue to increase. This due to the Westminster governments, (Labour then Tory) fiscal policies.

The Uk taxpayer (including pensioners) owe the world bankers nearly £1.8trillion.  Interest payments are horrendous and it is doubtful the prime sum  of loans will ever be repaid.

David Cameron, George Osborne and the rest of the Tory Party introduced the phrase “austerity, we are all in it together” to the nation.  Many of the electorate in England and Wales believed the mantra and returned the Party to office in 2015,  for another 5 years.

But bankers in the UK who plunged the nation into financial crisis have escaped unpunished. Indeed there are many former bankers and associated politicians appointed to high office as peers of the realm who now sit in judgement over the many millions of citizens they ripped off.

Bankers who remained in the “bailed out by the taxpayer banking system”  have been and are continuing to attract bonus payment measured in the hundreds of £million simply for doing their job. The rich have got much richer and old age pensioners and many other member of society are increasingly dependent on charity (faced with a lack of support from an uncaring welfare state) to remain alive.

Apart from severe cuts in welfare the major weapon deployed by the government was and still is maintaining interest rates at or near zero. The policy, has in effect reduced the value of pensions by around 30% in the past 10 years resulting in ever increasing numbers of pensioners needing welfare assistance which cannot be guaranteed. Other changes in the pipeline will result in many more cases of pension poverty.

 

 

 

 

The UK has the worst state pensions in Europe

The UK has the worst state pensions in Europe;

A study shows the state pays pensioners an income equivalent to just 17% of average earnings. The, “inadequacy” of the UK’s state pension system is, “beyond question”.

This is the lowest level in Europe and well below the average for all European Union countries of 57%. Even the Netherlands, which has the second-lowest level, provides a state pension nearly double the UK figure, the study shows.

At the heart of the problem is Westminster’s failure to undo the damage caused by the Tories under Margaret Thatcher, who cut the link between average earnings and pensions in 1980. Since then annual pension increases have been tied to retail price inflation.

So much for a caring Westminster political system. Scotland would be better served by being independent from the corruption that is Westminster. Vote, “Yes” in the referendum

http://www.thisismoney.co.uk/money/pensions/article-1615956/UK-state-pension-is-the-worst-in-Europe.html