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Pension confusion

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Glossop Davis Blank Furniss Solicitors Pensions Which?

Many people are still confused about changes to the rate of state pension which came into force on 6 April, according to a Which? survey.

The new figure for people with 35 years of National Insurance contributions is £155.65 per week. Those with fewer years of contributions will get proportionately less and anyone with less than 10 years is unlikely to receive any state pension.

Women and the self-employed are expected to be better off, but younger people may lose out.

Pensions Minister Ros Altmann said: “It is vital that people check what their state pension is likely to be when planning their future later life income.”

She said it would be easier to understand and that a new individual state pension forecast would soon be available online.

The Which? survey also found that only one in five people know that by the end of 2018 the state pension age will be 65 for both men and women

The news about confusion over the state pension changes came as new figures were released on drawdowns from pension pots. The figures show that over-55s have accessed nearly £6bn of cash from their pensions since the introduction of radical reforms a year ago. The changes removed the requirement for retirees to buy an annuity.