Could the rules change before the UK pension is drawn down?

Everything in this discussion assumes that the rules won't change.

If you are 65, it's unlikely that the rules will change before you qualify for the pension. but if you are 30 they might well do.

Would the UK re-joining the EU change the ability to qualify for two pensions?
The UK could just change the rules about qualifying for OAPs e.g. they could means test them or link the pension to the contributions made.
They could limit pensions paid to people living overseas.

The risk is small in any short time period. But it gets larger the longer you have to retirement.

There is no doubt that someone qualifying for Class 2 should do this, as the ratio of payout to contribution is so high.

But should a 30 year old who has to pay Class 3 do it?

Brendan

Also, what happens if the UK decide to rejoin the EU before our pension age. If we pay into this would we not lose our money?

Ash21 said:

Also, what happens if the UK decide to rejoin the EU before our pension age.

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Of all the risks, UK rejoining EU would be bottom of my list of possibilities.

Ash21 said:

Also, what happens if the UK decide to rejoin the EU before our pension age. If we pay into this would we not lose our money?

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why would there be a risk of losing the money? This is about Uk state pension entitlements for years worked/studied in the Uk.

RedOnion said:

Of all the risks, UK rejoining EU would be bottom of my list of possibilities.

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davy200 said:

why would there be a risk of losing the money? This is about Uk state pension entitlements for years worked/studied in the Uk.

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I thought that within EU, a person could choose only one state pension from a country not two.

My husband is from a staunch conservative area, huge shift particularly in the last year. Wouldn't surprise me, or at least joining a version of the SM.

llgon said:

Thinking about it more, it makes no sense for the UK to allow voluntary contributions from those living long term abroad with no intention of returning. There must be a strong possibility that at some stage in the future this will be stopped.



Given that possibility this could turn out to be very bad advice! Better to grab the opportunity while it's there in my opinion.

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Thats the thing that concerns me, why if the UK state is going to have this liability for all these people topping up their pensions with relatively small sums of money in comparison to the pension benefits they will eventually receive. Why have they extended the deadline and why is it so well advertised, surely they should be trying to do the opposite, close the whole thing down and make it very difficult for people to qualify for this

joe sod said:

Thats the thing that concerns me, why if the UK state is going to have this liability for all these people topping up their pensions with relatively small sums of money in comparison to the pension benefits they will eventually receive. Why have they extended the deadline and why is it so well advertised, surely they should be trying to do the opposite, close the whole thing down and make it very difficult for people to qualify for this

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I share some of the same questions joe sod. Why are they going to this much effort on this...?

Ash21 said:

I thought that within EU, a person could choose only one state pension from a country not two.

My husband is from a staunch conservative area, huge shift particularly in the last year. Wouldn't surprise me, or at least joining a version of the SM.

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No - this was possible when UK was in EU - so there's no reason why rejoining should make any difference.

I agree anything could happen in 35 years (look at what happened between 1909 and 1944!!!) but for me the risk of missing out on what could be the best investment ever, at a relatively low cost, means paying up is a risk worth taking. Might the payback still be as good - maybe not but even half as good would be a bonus!! Many of those people may well end up working again in the UK at some point in the next 35 years too.

It's right to highlight and discuss the fact that todays rules for anything to do with pensions will be very different in 35-40 years but what i don't think will change is that once you have a qualifying year you have a qualifying year. What that entitles you to will be anyones guess, but I'd rather have the years even at class 3 cost.

Brendan Burgess said:

Everything in this discussion assumes that the rules won't change.

If you are 65, it's unlikely that the rules will change before you qualify for the pension. but if you are 30 they might well do.

Would the UK re-joining the EU change the ability to qualify for two pensions?
The UK could just change the rules about qualifying for OAPs e.g. they could means test them or link the pension to the contributions made.
They could limit pensions paid to people living overseas.

The risk is small in any short time period. But it gets larger the longer you have to retirement.

There is no doubt that someone qualifying for Class 2 should do this, as the ratio of payout to contribution is so high.

But should a 30 year old who has to pay Class 3 do it?

Brendan

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Brilliant question, Brendan! Or what about a United Ireland? Probably more likely than Brexit being reversed. Loads of people in the border area have social insurance history in both jurisdictions. Apparently, after independence in 1922, the Irish Free State took on responsibility for pensions here, including civil service and RIC pensions. What would happen people whose UK social insurance record was acquired in Northern Ireland and who also have an Irish PRSI record? Would a 32 county UI pay up on the double, I wonder?

Right Winger said:

Or what about a United Ireland?

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Ah, that's why the British government is being so generous. Anyone getting two pensions will vote against a united Ireland.

Brendan

Brendan Burgess said:

Ah, that's why the British government is being so generous. Anyone getting two pensions will vote against a united Ireland.

Brendan

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Could lead to some perverse incentives alright!