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Old 25.04.2017, 16:03
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Will you ever get a UK state pension?

Assuming you're 40 today, and looking forward to retirement at 65, you'd have 25 years to wait before you collect your UK state pension, i.e the year 2042.

Only, the pension age is going to increase to 66 by 2020 and plans already afoot to increase it to 67 by 2026/2028.

Maybe if the pension age increases by 1 year every 7 years, you'd get your pension finally at the age of 70 - assuming the UK pension system, or indeed the UK, hasn't imploded by then.
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Old 25.04.2017, 16:26
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Re: Will you ever get a UK state pension?

Will it be worth anything by then ?
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Old 25.04.2017, 16:33
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Re: Will you ever get a UK state pension?

If you live >67 you will get whatever they pay.
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Old 25.04.2017, 16:36
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Re: Will you ever get a UK state pension?

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Will it be worth anything by then ?
With the triple-lock in place, yes.

But that is unsustainable and I imagine it will be dropped. But even if it moves with inflation and earnings, it will still be something... provided the ponzi scheme hasn't popped by then.
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Old 25.04.2017, 17:46
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Re: Will you ever get a UK state pension?

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Assuming you're 40 today, and looking forward to retirement at 65, you'd have 25 years to wait before you collect your UK state pension, i.e the year 2042.

Only, the pension age is going to increase to 66 by 2020 and plans already afoot to increase it to 67 by 2026/2028.

Maybe if the pension age increases by 1 year every 7 years, you'd get your pension finally at the age of 70 - assuming the UK pension system, or indeed the UK, hasn't imploded by then.
Why would you assume that the same scheme is even in place by then??? Most western European countries are going to have to reform their pension scheme in the coming years... Who knows what will be in place.

The Irish system is very similar to the UK and some nutters (sorry, economists) advising the government are pushing for a three pillar system with a conversion rate of Ä2K per year of benefits being the buy out => very low state pension going forwards and the rest is up to you to do your best with the Ä50K as per your 25 year comment.
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Old 25.04.2017, 17:58
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Re: Will you ever get a UK state pension?

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Why would you assume that the same scheme is even in place by then??? Most western European countries are going to have to reform their pension scheme in the coming years... Who knows what will be in place.

The Irish system is very similar to the UK and some nutters (sorry, economists) advising the government are pushing for a three pillar system with a conversion rate of Ä2K per year of benefits being the buy out => very low state pension going forwards and the rest is up to you to do your best with the Ä50K as per your 25 year comment.
1. Please tell me what specifics of a scheme I have assumed will be in place
2. Please say what should be assumed instead
3. Please note that I talk only about the potential retirement age of the UK state pension scheme
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Old 25.04.2017, 17:59
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Re: Will you ever get a UK state pension?

Should we feign some sort of shock that A state pension fund is starting to move the start date after years of keeping it rigid despite increasing life expectancy?

In the early 60s it would cover 6-11 years (based on a life expectancy of 71 - and a man retiring at 65 and a woman at 60)

By 2014 it was covering 16-21 years (based on a life expectancy of 81).
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Old 25.04.2017, 18:07
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Re: Will you ever get a UK state pension?

The interesting thing is that the pension age will be above the life expectancy in many areas.

Given that life expectancy is lower in poorer areas, it makes the pension scheme a kind of forced tax on poor people to support the rich people in their retirement!
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Old 25.04.2017, 18:14
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Re: Will you ever get a UK state pension?

Currently if you apply to pay (I think) class 2 voluntary contributions its about 140 quid a year to get a full state pension. You need 35 qualifying years, and as long as you have more than 11 years you will get something. Obviously the years you paid into the system when you resided in the UK plus any bonus years remain and cant be changed.

So in really basic terms, the pound is very weak at the moment. 100 pound is at least 20 francs cheaper than it was this time last year. Itís a government so arguably secure, and the current pay out sits at 150 quid a week. My 140 pound a year, increases my pension pot by 220 pound a year each time I pay. If they pay me out at 75 years of age and I only get 1 year benefit, its still a good return on what is essentially peanuts

Its worth the gamble!
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Old 25.04.2017, 18:30
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Re: Will you ever get a UK state pension?

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Currently if you apply to pay (I think) class 2 voluntary contributions its about 140 quid a year to get a full state pension. You need 35 qualifying years, and as long as you have more than 11 years you will get something. Obviously the years you paid into the system when you resided in the UK plus any bonus years remain and cant be changed.

So in really basic terms, the pound is very weak at the moment. 100 pound is at least 20 francs cheaper than it was this time last year. Itís a government so arguably secure, and the current pay out sits at 150 quid a week. My 140 pound a year, increases my pension pot by 220 pound a year each time I pay. If they pay me out at 75 years of age and I only get 1 year benefit, its still a good return on what is essentially peanuts

Its worth the gamble!
Some arguments against:

- Future GBP is worth even less than today
- You might not live to 75

However, I did calculate that in my case, paying voluntary class 2 NICs had an IRR of ~20% assuming collecting pension at 70 and living to 90.
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Old 25.04.2017, 18:39
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Re: Will you ever get a UK state pension?

I have worked for about 8 years in the UK and the system gave me a 34 GBP per week estimate for future pension. There is no min years requirement to get this pension, right?
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Old 25.04.2017, 18:45
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Re: Will you ever get a UK state pension?

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I have worked for about 8 years in the UK and the system gave me a 34 GBP per week estimate for future pension. There is no min years requirement to get this pension, right?
More than 10 years. But with your 8 years, they may have gave you some additional credit years from 16-19 years of age
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Old 25.04.2017, 18:50
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Re: Will you ever get a UK state pension?

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I have worked for about 8 years in the UK and the system gave me a 34 GBP per week estimate for future pension. There is no min years requirement to get this pension, right?
10 years minimum for the new state pension.

but you can check online how many years you actually have.
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Old 25.04.2017, 18:51
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Re: Will you ever get a UK state pension?

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More than 10 years. But with your 8 years, they may have gave you some additional credit years from 16-19 years of age
This assumes that I will be UK resident when claiming the pension (67)?
I wonder what is the deal if at that time you live in the EU or outside the EU?


Can you get a refund of your contributions if they don't give you a state pension?
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Old 25.04.2017, 19:46
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Re: Will you ever get a UK state pension?

As an aside can anyone explain know how to calculate the COPE reduction?
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Old 25.04.2017, 19:52
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Re: Will you ever get a UK state pension?

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This assumes that I will be UK resident when claiming the pension (67)?
I wonder what is the deal if at that time you live in the EU or outside the EU?


Can you get a refund of your contributions if they don't give you a state pension?
My husband is a resident in Switzerland and gets his UK state pension, no problem. Apart from the current rate of exchange that is.
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Old 26.04.2017, 09:02
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Re: Will you ever get a UK state pension?

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The interesting thing is that the pension age will be above the life expectancy in many areas.

Given that life expectancy is lower in poorer areas, it makes the pension scheme a kind of forced tax on poor people to support the rich people in their retirement!
Surely by the time you retire Phil the pension will only be 3s 6d per week - following the UKs return to LSD after Brexit??

It could also be argued Phil that:
- The rich will contribute the vast majority of the UK national pension pot
- The poor typically take a lot from the system ahead of retirement
- A state pension issued weekly/monthly infinitum is flawed when the reality of the pension universe has now moved to defined contribution.
- Any attempts to reduce the state pension to the rich will hurt the middle far more and be a massive vote loser.

#1 of pension/investments/assets for ANYONE is to make your own provisions.
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Old 26.04.2017, 09:28
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Re: Will you ever get a UK state pension?

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10 years minimum for the new state pension.

but you can check online how many years you actually have.
I read on another forum that if you live outside the EU you can buy additional years to meet the 10 years min requirement. If inside the EU (current laws of course) you do nothing and get partial pension for the 8 years.

So to buy 2 additional years how much it will cost me? Any ideas?
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