New State Pension to be at least £151.25 a week
Autumn Statement confirms revised figure.
The new State Pension, due to launch in April 2016, will now be at least £151.25 a week, it was revealed in the Autumn Statement.
Previously, the new single-tier pension was pegged at no less than £148.40 a week.
The increase is because the amount of Pension Credit paid to current pensioners is increasing in line with the so-called 'triple lock' guarantee and the two payments are linked.
The actual amount to be paid in new State Pension to the first batch of pensioners from April 2016 will be announced in autumn 2015.
The new State Pension
If you’re a man and you reach 65 or a woman and you reach 63 on or after 6th April 2016 you’ll receive the new State Pension.
You’ll need at least 10 qualifying years of National Insurance contributions or credits to get any State Pension, and 35 years to get the full amount.
Currently, the Basic State Pension is topped up with Pension Credit if you’re have a low income, but this will be scrapped for new pensioners from 2016.
You may receive a reduction in the new State Pension if you ‘contracted out’ of the Additional State Pension to pay into a personal or workplace scheme instead.
And you may receive more than the weekly amount if you have over a certain amount of Additional State Pension accrued.
How lovemoney's new Plans tool can help you plan for a richer financial future
Call for more flexibility
Accountants PwC have called for more flexibility in when people can access the State Pension, proposing a ‘window’ where people could access their pension within a certain time period, which could be earlier than the official age.
If people did access their pension earlier, PwC suggests, then they would receive a commensurately reduced amount each week based on their National Insurance record.
How lovemoney's new Plans tool can help you plan for a richer financial future
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Comments
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Although many ladies are complaining about the changes it was certainly unfair that men had to wait until 65 whilst females were able to draw the pension at 60 meaning that men lost about £25000 of payments. At least the ages are being equalised now.
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What's also not fair is the changes that have been implemented to increase the age of when women can receive their State pensions.Women who like me, were born in the mid 1950's are being punished, as we are taking the brunt of these pension changes.In my case, i have to work for another 5 years and 6 months when i will be over 65.There is a big leap from those born before April 1953 .Many of my friends are single and in manual occupations, like care workers and cleaners, who don't think it will be possible to continue in that work for another 5 years or more,into their mid and late 60's. They cannot afford to retire until they receive their State Pensions.Many of us are also looking after our grandchildren too, as their parents can't afford Child Care. We had all planned to retire when we reached 60. We feel we are the forgotten female workers. It's scandalous . Someone has got to help, as there is a lot of us out there, with a lot of voting power
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CALL THIS FAIR AND EQUITABLE? It does seem patently unfair that those of the working community who have already retired on a basic pension with no additional benefits, or will be retired on this basis before April 2016, lose out on on a considerable difference in pension payments between themselves and post April 2016 retirees. These people have worked just as hard and just as long for their pension, but after April 2016 they will see approximately £35 a week less in their pension than a new retiree, (£70 if both spouses worked, equivalent to £3640 a year). That is a big difference. There are about 10 million pensioners who have been excluded from the new pension system payments. Another piece of half-baked legislation brought about by politicians, who seem to be on another planet when it comes to creating workable solutions to problems.
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19 December 2014