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Legal, pensions and money

Triple lock

(3 Posts)
ElderlyPerson Fri 09-Jul-21 17:31:02

bump

ElderlyPerson Wed 07-Jul-21 17:49:01

www.mirror.co.uk/money/state-pension-rise-8-194-24476447

However, it is not as simple as that, for various reasons, including at least the following.

Many retired people were 'contacted out', so they get the lower figure from the State and the guaranteed minimum extra from their occupational pension provider,

BUT, it appears that rises in the guaranteed minimum payment, anything from all, some or none of it, depending when the employment took place, is paid with the State pension,

In addition, some of us worked for a while not in a contracted out pension scheme, perhaps in a student summer vacation, or because back then some pension schemes only allowed people to join at the start of the next financial year, for many of the people here they may have accumulated points or whatever they are called in the Graduated Pensions scheme that ran in at least the late 1960s and much of the 1970s and though the scheme closed to gaining the points the government is honouring those already gained

In addition, it appears that in the scheme that is going now and has run for the last five years or so, someone retiring needs to have 35 years of work or credits (during jobseeking, or illness, or as a carer in some circumstances) and for as many years as they have after 2016 or whenever it was they get the new higher rate of pension and the rest at the older lower rate of pension,

Also, if someone does not with all their income (including I think a deemed 10% from capital over a certain value) to go over that high figure, then they MIGHT get pension credit top up money, though I seem to think that the pension credit system gets abolished for the years of the new post-2016 or so system, so that eventually it goes for good, as I think contacting out has now gone too.

However, as the personal allowance for income tax did not rise this April, but the State pension did, the amount of the personal allowance left over to be allowed against the private pension decreased, so there is now increased taxation on the private pension. So if the pension rises but the personal allowance for income tax does not, then the tax on the private pension will increase for some people.

I am not a lawyer or a tax expert, the above is just chat on what I have picked up over the years.

The net result is that it is not as simple as someone either getting the higher figure or the lower figure, many people will get something between those two figures as their State Pension.

By the way, the article mentions getting the pension in arrears every four weeks. When I retired I was asked if I wanted it weekly in arrears or four-weekly in arrears and I chose weekly. I pay for my Tesco grocery deliveries out of it, so it makes it much easier to manage the money receiving it weekly.

Pixxie7 Wed 07-Jul-21 01:05:51

So the government is now considering getting rid of the triple lock, due to potential rise of 8 per cent this year, mainly due to COVID. Despite the fact that a majority fortunately didn’t need to take advantage of any of the government’s interventions.
What do people think.