# UK Pension Changes - Wait a Wee Minute!



## ossian (Apr 8, 2016)

This one seems to have sneaked up on me and I am not clear what the Government are playing at.

Most of my family are employed in the public service. Today we learned that the rate of National Insurance that they will pay is to increase from this month. This is because the old additional contributions contracted out arrangements to allow for the investment in a private pension will cease. However, the contribution that they need to make to their private pensions will remain. Now as far as I understand it. The new State Pension will be a flat rate pension and the old additional contributions to allow you to increase your State pension will no longer apply. Of course, the earned additional pension for any contributions paid prior to April 2016 will be paid - presumably.

So.... what am I missing here? We pay new higher (or the same 'higher' cont if you are not contracted out) NI conts for a flat rate pension which will be less than the old Sate Pension plus the additional pensions (SERPS). And those who were contracted out still need to pay for our private pensions?

As we would say here.......... 'Hawd own a meenit, Davie boy' Unlike our Prime Minister not all of us have been squirrelling money away into tax free offshore accounts for our old age!


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