Always read the fine print: Surprise with new UK pension terms

26 May 2014

Millions of workers nearing retirement in the UK may not get the new flat-rate weekly pension of £155 and may have to settle for a far less amount, according to a Money Mail investigation.

The report predicts that as many as one in four pre-retirees in UK could miss out on the full flat-fee weekly state pension of £155 that will be introduced from April 2016. This could mean a rude shock to the plans of those retiring within the next two years.

Money mail has uncovered a series of highly complex and technical details in the fine print of the new flat-rate pension which could prevent pensioners with full National Insurance contributions from receiving the new rate of pension that was guaranteed to them after the recent pension reforms.

Under the current system, these workers would qualify for the full basic state pensions of £113.10-a-week, and it is likely that many of them who are expecting the new rate of pensions could end up with far less. The more disturbing fact is that not even the government has calculated exactly how much less.

Read more about what could prevent the pre-retirees from receiving the full-rate UK pension. Click here

Tags: UK pension

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