The new state pension system is not good news for everyone, with around half of men now in their 50s set to receive a lower retirement income under the new system, official analysis shows.
Research from the Department of Work and Pensions (DWP) reveals those in their early 50s will lose as much as £11 a week – or £572 a year – when the new system starts in April.
And nearly 40 per cent of women in their early 50s are due to lose £8 a week when the new system commences.
When putting women and men together, close to 45 per cent of those in their early 50s will lose £9 a week.
From April next year the state pension will be paid at to the amount of £155.65 a week, up from £115.95 a week, in a move that aims to be fairer to women and self-employed. However, the state second pension, where workers can increase their pension by up to £164 a week, will be scrapped.
This means men in their 50s, many of whom would make extra payments to receive more than £155.65 per week, will be hit hardest.
Meanwhile, those in their 60s who will claim their pension in the first five years of the new payout will all lose: just under half of those who retire between next year and 2020 will be £3 a week worse off or see no change. From 2021 to 2025, the proportion of those retiring who will lose money will increase, with close to 40 per cent £6 a week worse off.
However, in an analysis that lays bare the winners and losers of the new state pension, close to 55 per cent of those in their early 50s will gain £10 a week.
The DWP said: "Between 2017 and 2030, around three-quarters of individuals will have a notionally higher outcome."