New state pension comes into effect
A new single-tier state pension will be introduced for those who reach their state pension age on or after 6 April 2016.
The full state pension will be set at £155.65 a week. Men born after 6 April 1951 and women after 6 April 1953 are eligible for the new system.
Workers will be required to have 10 years’ worth of national insurance contributions (NICs). 35 qualifying years is also required for the full new state pension which has been extended from 30 years.
Workers who have already retired before 6 April 2016 will continue on the old two-tier system where they’ll receive the basic state pension of £115.95 a week plus additional savings (Serps).
In March 2016, Daniela Silcock, head of policy research at The Pensions Policy Institute, said:
“Once the new state pension has been fully phased in there will no longer be significant differences in state pension income between women, ethnic minorities, disabled people, carers, the self-employed and the average for all pensioners.
“However, lower private pension saving and income among the under-pensioned are projected to continue.”
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