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Pensions Advisory Service welcomes state pension reform

A Government white paper setting out changes to the state pension is expected to be released this afternoon.

The Government has previously announced that it will reform the state pension system into a simpler, single tier state pension for future pensioners.

The new system will be introduced in the next Parliament.

The Government has made it clear that when it introduces the new rules, it will recognise contributions that have been made into the current system.

You will not be affected if you reach state pension age before the new scheme starts, even if you choose to delay starting your state pension until the reforms come in.

We welcome these changes as we believe it will be easier for people to understand what they will receive from the state pension.  This in turn will make it easier for people to work out how much they need to save to ensure they have a comfortable retirement. If you have any queries, please telephone our helpline on 0845 601 2923. We will be examining the white paper in detail and we will put further information on our news service tomorrow.

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