STATE PENSION OVERHAUL IS GETTING CLOSER
December 22 2014.


With less than 500 days to go before the state pension system is overhauled, the government has launched a new campaign – “Your Pension, Your Future” - to help workers understand the reforms that will introduce a flat-rate state pension.

The government believes that the reforms will “tackle inequalities of the past, with women, carers, lower earners and the self-employed to benefit the most.” It expects that in the first 10 years, 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.

The campaign coincides with the publication of new research carried out for the government which confirmed the lack of understanding many people have about the British state pension system. Some 42 per cent of people, yet to retire, admit they need to find out more about saving for retirement, while 38 per cent concede they “try to avoid thinking about” what will happen when they stop working. And only 60 per cent of all adults surveyed realise it is possible to take action to increase their state pension.

For more detail on the campaign CLICK HERE.

Individual personal pension statements can be found HERE.