State Pension Changes 2016 -
Single Flat Rate
There will be fundamental basic changes to the UK Pension
Payments from the year 2016. The new system will simplify matter
relating to State Pension Payments. Simplification does not mean
that you will automatically be a winner!
The current payments system will stay in force until then.
In 2016, there will be the introduction of a single tier flat
rate for all pensioners who are qualified to receive State
Pension. This single flat rate pension will be worth £144.00 per
week for each person. This is calculated at today's money. In
year 2016 with cost of living rises etc. it is expected to be
somewhere between £150.00 and £160.00 per week. This is totally
dependent upon rises in cost of living
Winners and Losers in 2016!
Nothing is simple in the world of State Pension Payments, so as
you would expect, there will be both winners and losers when the new
flat rate pension comes into force..The maximum flat rate pension
will be for
everyone in Britain who has spent at least 35 years working and
paying NI, or who has been unable to work because of caring for
children or caring the elderly has taken place of normal work. It
will undoubtedly be a simpler system than the present 2 tier system.
But, there will still be the clauses that cause so much hassle -
relating to if you have qualified for the FULL basic Sate Pension,
or whether you are precluded because of insufficient NI payments.
- Lower Income Earners, should be better off than with the
existing system of Pension Payments, as will many self-employed
- Many higher earners will be worse off under the new system -
mainly because of the abolition of the secondary pension
scheme - S2P.
We will update this page as and when the full details emerge, rather
than simply speculating on what may, or may not happen.
Pension Rates as of 2013