See why under my abolition of flat rate pension petition, in my
WHY THIS IS IMPORTANT section, at
https://you.38degrees.org.uk/petitions/state-pension-at-60-now
and the revoking of raise of retirement age petition:
https://you.38degrees.org.uk/petitions/revert-to-the-governments-promise-regarding-no-increase-in-the-state-pension-age-until-2016-2012
Re sections that are wrong, article on Gransnet about PENSION CREDIT:
... If you are a woman born before 6 April 1953 or a man born before 6 April 1951 ...
The raised retirement age denied state pension payout from 2013 to these people and they become liable to the flat rate pension 3016, retiring in about 2019-2020.
So these people cannot receive any form of
Pension Credit as not retirement age since 2013.
It is older people than those birth dates who immediately become liable to the flat rate pension and loss of pension credit, who retire on and from
6 April 2016.
... Meanwhile, Pension Top Up is a scheme starting this October which gives pensioners up to £25 a week on top of their State Pension, in return for a lump sum. ...To do this you will need to make a lump sum payment between 12 October 2015 and 5 April 2017.
Do not pay this lump sum, as the flat rate pension on and from 6 April 2016, abolishes
Pension Credit (savings) and
brings about complex conditionality even to current claimants for the guarantee credit component of Pension Credit.
Also do not defer your state pension as all the small print means easily lose all the months of payout and not get any lump sum and might affect your NI record history.
... For a single person, the standard minimum guarantee level is currently £148.35 per week, rising to £151.20 per week from April. For couples it is currently £226.50, rising to £230.85 from April. ... Pension Credit will continue to provide this safety net for the pensioners whose income falls below the standard minimum guarantee after the new State Pension is introduced in April 2016. ...
Again Pension Credit is being lost by the flat rate pension, so this is not correct.
Many women are getting as low as a pro rata state pension of £30 per week. There are many women on public sector works pensions as low as £60 per week. The £500 per month pension is listed by the Institute of Fiscal Studies as 4 per cent lowest income.
... individuals who have taken career breaks to raise children or for caring responsibilities are eligible for National Insurance credits to cover gaps on their National Insurance record. Those caring for adults can also benefit from specified adult childcare credits and carer’s credits. Women in their 50s are among those most likely to be providing informal care and stand to benefit here. ...
If you are beyond two tax years before you applied in retrospect, then you have lost those National Insurance Credits for life.
But this again may not be worth it, because you may find:
1. You were below the lower entitlement level for National Insurance, to receive either NI credits or pay NI contributions, in your wages during your employment history.
2. If you were opted out of the State Earnings Related Pension Scheme that became known as the State Second Pension in 2002, then you will lose one year NI record for each year contracted out. People are already getting official government forecasts for retiring on and from 6 April 2016, of as low as £55 per week with no top ups.
3. It is women in their 50s suffering the biggest loss from the flat rate pension. Half of over 50s / over 60s are within the working poor. And the working poor include people earning below the NI entitlement lower level, so not earning NI history.
The flat rate pension changes the current right from 1 year NI record minimum, to 10 year NI record minimum to get any state pension at all.
There are many poor workers with no works or private pension.
.........
Full article on Gransnet
Pension credit and top ups - what you need to know
Pension credit is, we are told, the least claimed of all benefits. So what is it? How does it work? Who is elgible? And how do you get it? We've got the details right here.
Meanwhile, Pension Top Up is a scheme starting this October which gives pensioners up to £25 a week on top of their State Pension, in return for a lump sum. It's a good alternative to Pensioner Bonds. Again - we've got the low-down below.
Pension Credit
This is the means-tested benefit for people who have reached state pension age. It tops up their household income to a guaranteed amount known as the “standard minimum guarantee”. So, if your State Pension is below the “standard minimum guarantee” and you don't have enough additional income to put your household income above this level, you are able to claim Pension Credit to top up your weekly income.
For a single person, the standard minimum guarantee level is currently £148.35 per week, rising to £151.20 per week from April. For couples it is currently £226.50, rising to £230.85 from April. Pensioners who have a disability, caring responsibilities or housing costs can claim additional amounts depending on their circumstances.
Pension Credit will continue to provide this safety net for the pensioners whose income falls below the standard minimum guarantee after the new State Pension is introduced in April 2016.
One thing that it's important to note is that individuals who have taken career breaks to raise children or for caring responsibilities are eligible for National Insurance credits to cover gaps on their National Insurance record. Those caring for adults can also benefit from specified adult childcare credits and carer’s credits. Women in their 50s are among those most likely to be providing informal care and stand to benefit here.
Other things you might like...
National Insurance credits may be available to people who are unable to work and pay contributions because they are unemployed, are incapable of working or have limited capacity to do so, or are caring for others. But as with any benefit, there are conditions of entitlement - although many are awarded automatically in some cases applications are required.
Those who stay at home to bring up their children are awarded NI credits automatically if they receive Child Benefit up to their youngest child’s 12th birthday.If the partner caring at home is not the Child Benefit recipient they can apply to have the credits transferred to them as long as the Child Benefit recipient does not need the credits themself.
A full list of credits currently available and the eligibility conditions can be found here
Pension Top Up
If you are a woman born before 6 April 1953 or a man born before 6 April 1951 then you can increase your State Pension by between £1 and £25 a week and get a guaranteed extra income for life with the State Pension top up scheme.
To do this you will need to make a lump sum payment between 12 October 2015 and 5 April 2017. You can find out how how much you’ll need to pay by using the State Pension top up calculator to find out how much you’ll need to pay. If you have further questions you can email [email protected] for more information about the State Pension top up and how to make a payment.
