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Scottish Financial Advisor William George is concerned that with the Governments new Pension Calculator just weeks away, so many upcoming retirees are only now finding out with a shock, they may not get the full £155 per week “Flat Rate” payout advertised.
He explains…
“More and more confused retirees worried about the new Single Tier Pension due to be introduced on APRIL 6 2016 are asking for clarification. They were under the impression everyone would get £155 per week as long as they had 35 years of National Insurance contributions behind them. That is not the case.”
Concerns were first raised in the summer when UK Pensions Minister Steve Webb confessed in the Telegraph he may have been “guilty of oversimplifying the new flat rate state pension.”
Guilty or not, this unsettling news is worrying for many upcoming retirees who urgently need to establish exactly what they will get under the new state pension warns George. He suggests getting in touch with the Department of Work and Pensions (DWP) now, without waiting until their new calculator is ready.
“I encourage anyone concerned they will not get a full payout even though they have 35 qualifying years of National Insurance to write to the DWP now so they can send you a quote as soon as the new calculator is ready. Try and get in the queue now so you get a figure quicker because then you can plan accordingly.” says George.
Most likely to suffer lower payouts under the new pension rules stand to be those contracted out into Final Salary schemes (common with Teachers, NHS, Fire, Police, Council, Civil Service, Armed forces etc), as well as mothers with gaps in their work history because they were caring for children George advises.
He suggests writing to the Department of Work and Pensions at this address…
The Pension Service 9
Mail Handling Site A
Wolverhampton
WV98 1LU
United Kingdom
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Release ID: 65430