The Chancellor announced in the recent spending review that the basic state pension paid to current pensioners would rise by £3.35 to £119.30 a week in April. The “single-tier” pension paid to those who retire after that date will be £155.65 a week, he said. So the difference between the amounts paid by the two systems will be £36.35 a week, or just under £1,900 a year. This difference between the new and old state pension is finally clear and amounts to a significant about of money that is different in the basic entitlement.
Malcolm McLean, a former head of the Pensions Advisory Service said pensioners were waking up to the fact that only those who reached state pension age after the introduction of the flat rate in 2016 would receive it. Anyone who reaches retirement age before then will receive the existing state pension for the rest of their life. Ros Altmann, the pensions minister, said back in 2012: 'I would call on the Government to consider extending the flat-rate system to those who have already retired' but she has not been forthcoming yet. Rather than be wholly dependent on a state pension make sure you start saving as early as you can. Enable’s IFAs can help you look into the right kind of saving plan for you.
Source: The telegraph
Issued by: Enable Independent Financial Life Planners 25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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