Enable’s IFA’s in Bishop’s Stortford know that many of us hoped that a single tier pension would iron out confusion about state pensions and would offer a simple solution. A new study from Hymans Robertson suggests that it’s not simple, and it’s not that generous. They say that “in fact, most people will be worse off under the new system.”
Sue Waites, Partner at Hymans Robertson, said: “There’s a widespread expectation that everyone who reaches state pension age from April 2016 will move from a basic state pension of £115 to a new flat rate of £151 per week. The reality is quite different. The transition to the new State pension brings many complications, particularly for those approaching State Pension Age. Some will be very surprised at how much they actually get.”
The study suggests that fewer than half of those reaching the right age soon after 2016 will qualify. The number of people with fewer than 35 years of National Insurance contributions will be partly responsible for this. However, the big problem is the number of people who have opted out of the state second pension at some point in their career – which the government will reflect in lower state pension payments. Waites says anyone approaching their state pension age should contact the DWP, explaining: “Get in touch with the DWP to find out what you’re likely to receive and avoid any unpleasant surprises.”
If you want to make sure your retirement is a comfortable as you hope it will be Enable’s IFA’s in Bishop’s Stortford can help you look at the whole picture including your State pensions.
Source -Hymans Roberson
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