Chloe Smith MP: New Single Tier Pension builds stronger foundation for retirement saving

This week sees the introduction of the new Single Tier State Pension. Those reaching the state pension age on or after the 6^th of April 2016 will benefit from a new system, which is simpler and will enable people to know from a much younger age how much they are likely to receive.

 

A number of constituents have been in touch with me in the build up to this.  People are naturally keen to know what pension they will receive and so the Government has published some handy factsheets on this which can be read here: https://www.gov.uk/government/publications/state-pension-fact-sheets.

 

I have supported the introduction of the Single Tier Pension, because I think it does a good thing in creating a simple flat-rate pension set above the basic level of means-tested support. In short, it provides a better, stronger, platform for retirement saving. What’s more, it also significantly helps the many women retiring now or in the future whose predecessors were short-changed by the way that working and family lives were before.  The new pension also improves things for the self-employed.

 

I also like that we’ll know further in advance how much we’re likely to receive. This is essential if people are to properly plan for their retirement. The Conservatives in government have already put the basic state pension up and ensured that it will always rise by the highest of price inflation, earnings growth or 2.5 per cent. As a result of this action, your state pension is now at its highest level relative to earnings than at any point since 1992.

 

So, if you are shortly to retire, make sure you look at the information for your own state pension.  If you are some years off, then you can be reassured of the new way the state pension will benefit you, but don't forget to look at other savings now too for how you will put by all of what you need for later life.