Much has been published about the proposed rise in the State Pension to £140 in 2016. What has been little published however is the fact that this will not apply to existing pensioners, only those reaching the pension age by that year. Seems a wee bit unfair!
A story I believe. All that is happening is the current basic is supplemented by extras-[SERPS and things like it ] all being brought together as one basic- which in time will have its own extras [ inflation/cost of living increments] I would imagine. MY State pension basic plus extras - is above that £140 base line now - by the time 2016 comes along with the annual increases will still be above the new baseline.
Perhaps off subject slightly, but for the last two years my private pension as remained stagnant with no increase whatsoever. This 2011/2012 session year it would appear that the provider will be able to give a 'slight increase' in monthly payments.
Things must be looking up, both for the public and private sector?.
That pay a fixed amount each year regardless until you expire. My private annuity - which was 3 private pensions amalgamated to one to purchase the annuity was worth at the out set the equivalent of one week of state pension per month- in other words for every four weeks of state the private provided one more. Now because it is fixed and the State has 'increased' over the past 12 years- my Private now only provids the equivalent if two and a half days.