Pensioners Let Down By Government “Shambles” Of Communication

by | 6th April, 2016 | Financial Planning, Education, General Lifestyle | 0 comments

Pensioners Let Down By Government “Shambles” Of Communication

Most people retiring after the 6th of April 2016 will not receive the full £155.65 a week flat rate state pension

If you are retiring after the 6th April 2016 your state pension will fall under a new regime touted as being simpler and fairer.  However,  a Work and Pensions Committee final report has found “failures to communicate mean too few people understand” the changes and many are set to receive less money than they expected. MPs have been critical that government communication has been too “focused on the full flat rate”.

In what Saga’s director of communications, Paul Green branded a “shambles”, those worst hit are unaware with “inaccurate or outdated” information leaving them “little to no time to make up for this government information error.”

With the changes looming, MPs have called for those negatively affected to be written to “as a matter of urgency”.

Women Amongst Those Most Negatively Affected By Changes

While it is still unclear whether the new rules will meet their stated goals in the long run, it is the transitional years that are set to see many people lose out.  Those groups at the top of the MPs’ concerns include:

  • People with fewer than 10 years of qualifying contributions.
  • People (largely women) who would currently derive rights to a pension based on their spouse’s contributions and are not covered by transitional protection.
  • Those who built up a large guaranteed minimum pension in the period 1978-1988 and will reach state pension age during the early years of the new regime.

MPs are calling for a new telephone hotline for those concerned about their circumstances to be manned by expert advisors and annual state pension statements to be sent to all people aged 50 and over in line with the private sector.

For clear independent financial advice please feel free to contact Hoskin Financial Planning to discuss how you are affected.

THIS BLOG PROVIDES INFORMATION, IT IS NOT ADVICE. ANY OPINIONS ARE GIVEN IN GOOD FAITH AND MAY BE SUBJECT TO CHANGE WITHOUT NOTICE. OPINIONS AND INFORMATION INCLUDED WITHIN THIS EMAIL DO NOT CONSTITUTE ADVICE. (IF YOU REQUIRE PERSONAL ADVICE BASED ON YOUR CIRCUMSTANCES, PLEASE CONTACT US AT HOSKIN FINANCIAL