Public unaware of reforms to state pension

THE GOVERNMENT must do more to explain the new state pension to the public, according to a report released today by MPs who fear workers could lose out if they are not warned about the forthcoming changes.

Reforms announced earlier this year will see the existing system replaced with a new single-tier pension worth £144 a week from 2016.

But with just three years until the changes are implemented, the work and pensions select committee is calling on the government to publicise the fact that some individuals may need to make additional national insurance contributions in order to be eligible

The report also raises concerns that women born between April 1952 and April 1953 will miss out on the new pension after seeing their retirement age increased.

“Individuals will be affected in different ways depending on a number of factors, including their age, and their previous pension and National Insurance contributions,” said committee chair Dame Anne Begg MP.

“Now that the implementation date has been brought forward to 2016, it is even more important that people receive understandable and accurate information as early as possible.”

Despite this, the report broadly welcomes the reforms, saying they will simplify the pension system and give certainty when people are planning for their retirement.