Chancellor Jeremy Hunt’s move to implement the state pension triple lock and provides everyone a ten.1 percent increase from April has did not quell pensioner frustration. Many feel unfairly treated and have been pouring out their hearts to Express.co.uk.
There at the moment are two state pensions, and which one you receive will depend purely on the date you retired.
The brand new state pension was introduced for those retiring from April 6, 2016, and was designed to simplify the system.
It rolled basic state pension, State Second Pension (S2P) and state earnings-related pension scheme (Serps) entitlement right into a single payment.
From April, it is going to pay £10,600.20 a 12 months to those that made the utmost 35 years of National Insurance contributions.
The old state pension, paid to those that retired before April 6, 2016, can pay just £8,121.20, a staggering £2,479 a 12 months less.
Those that built up entitlement to S2P and Serps during their working lifetimes will get more pension on top of that.
Nevertheless, many should not have any additional state pension, and can receive a pittance consequently (although they could claim pension credit).
The 2-tier system was introduced greater than six years ago but stays a live issue for tens of millions who feel helpless and abandoned.
Reader jandevon said. “You possibly can bet basic pensioners feel hard done by. We’re treated like 2nd class residents.”
Jandevon identified that many on the essential state pension actually made much more NI contributions.
Before 2010, to get the total basic state pension men needed to pay NI for 44 years and ladies for 39 years.
That was cut to 30 years for the ultimate six years of the old scheme.
Many pensioners on the old basic state pension will likely be frustrated to see headlines suggesting they will likely be getting £10,600 a 12 months, when in practice they won’t.
Irvin Carl Jackson wrote: “State pensions should all be the identical whether you’re a girl, old generation pensioner or a young pensioner. Absolutely disgrace.”
READ MORE: State pension to hit £10,600 but older pensioners get £2,500 less
Reader mugginsnumberone said: “Some will say older folk need extra money to get by. Definitely not less.”
Many Express.co.uk readers identified that the gap between the 2 pensions will only widen over time. Each rise by the identical percentage annually, but the essential state pension has a lower start line.
Fed-up from London said it’s “ridiculous” that an older pensioner gets less money every week than a younger one. “Old folk don’t stand a likelihood.”
Many railed on the sheer complexity of the system, including diactivated. “Why do they should make the whole lot so complicated? Just give every pensioner the identical amount.”
Reader lilyswan agreed, adding: “Cost of living and energy hikes affect all, no matter once they retired. Price increases don’t rely upon age.”
Top 10 fixed rate savings accounts with high interest now [INSIGHT]
State pension triple lock ‘must be scrapped and sum cut to £125 [WARNING]
‘Pensioners raid retirement funds to support cash-strapped families [LATEST]
Nevertheless, reader mableone, who retired in 2009 on the old state pension after 50 years at work, said headline figures are “misleading” because many on the essential state pension get Serps on top.
Mableone wrote: “As Serps increases in keeping with inflation, my old state pension plus Serps will rise to £11,300 a 12 months.”
That’s true for some but offers little consolation for many who don’t get S2P and Serps. Women living on the old state pension are particularly hard hit, as they often gave up work to lift a family, so made fewer NI contributions.
Many expected to continue to exist their husband’s pensions at retirement only to see their hopes dashed by death or divorce
Reader Porter held out little hope of presidency motion. “They are only waiting for us oldies to kick the bucket then it won’t be an issue anymore.”