It's interesting to see that even the so called 'experts' don't seem to understand what's going on with the new NICs and the new State Pension.
Paul Johnson, Director of the IFS, was recently quoted in the DT as saying;
“Members of final salary occupational pension schemes and their employers will now be paying the same NI contributions as the rest of us.
"Since they will be building up just the same state pension rights this can only be right.”
Well that might be correct for individuals just starting out on their working life, but if reports are correct, those already well into their careers will be hit very hard by the contracting out, with even a short period contracted out, a year or 2 for example, leading to a hefty reduction in the new pension seemingly out of proportion to the time spent contracted out. I for one expect to get nothing close to the widely touted State Pension of £155 or whatever it is in a couple of decades time because of the time spent in AFPS.
I wonder if he conveniently forgot about this or just didn't realise ... politics or incompetence, which noose would you rather hang yourself with Mr Johnson?