Biggest state pensions overhaul in generations

December 30, 2014   //   No Comments

In November the Government launched a major new drive to help people understand historic reforms that will introduce a flat-rate State Pension.

Designed to give people a greater sense of economic security and peace of mind in retirement, the reforms will tackle inequalities of the past, with women, carers, lower earners and the self-employed to benefit the most.  In the first 10 years, Department for Work and Pensions (DWP) analysis suggests that around 650,000 women are expected to benefit from the transition valuation, receiving on average £8 a week more in State Pension.  Ministers are urging everyone – and the over-55s in particular – to look at what the changes will mean for them and to secure a detailed State Pension statement so that everyone can plan accurately for retirement.

Under the new system, pensioners would in time receive around £150 a week or over if they have 35 years of full-rate National Insurance contributions, but those soon to retire will need to check what it means for them, with transitional arrangements in place as the system switch over.

Arriving in April 2016, the new State Pension will help create a simplicity that hasn’t existed in decades. It will give workers the knowledge that there is a strong foundation upon which they can build their savings. You may read more on the government’s website.