The New 'Flat Rate' Pension
In April 2016 a new system of state pension will be launched. It will replace the existing two tier arrangement of a basic pension plus an extra earnings linked payment.
The new flat rate pension is expected to be £155 per week. The present pension is £115.95 per week.
The Government, however, have acknowledged that many retiring from next April will not receive the full flat rate because deductions will be made for periods spent ‘contracted out’ of the state scheme. Over 55’s are able to obtain forecasts of their expected pension from the DWP web-site.