09 Mar, 2016
Thousands won’t be eligible for state-pension
A charity has warned that tens of thousands of people may not be eligible for the new state-pension between now and 2030, reports deVere Group.
Charity Age UK has announced that around 70,000 people, 50,000 men and 20,000 women, currently don’t meet the criteria set to qualify for the new system. They also claim that they have no idea how these people will be affected over the coming months, as the changes are implemented in April.
The current system has no limit on the amount of National Insurance contributions that must be made before a person can benefit from the state-pension. Therefore, even people who have worked abroad for the majority of their lives can return with no problems.
However, the new rules, set out by Chancellor George Osbourne, will change this so anyone that hasn’t made contributions for at least 10 years will not be allowed access to a state-pension.
Furthermore, the new system will see retirees get £155.65 a week after April 6th, but this can lower substantially depending on your National Insurance record. To get the full amount of the aforementioned figure, people will need to have contributed for 35 years or they will receive a smaller amount.
Charity Age UK’s director, Caroline Abrahams, commented that: “Big changes are about to come in to simplify the state pension system, yet we know that many people in their fifties and sixties are completely unaware of how they will be affected. There is evidence suggesting that some people in this age group are so worried about what their finances will be once they retire that they are reluctant to think about it at all, but our strong advice is to take action now to find out exactly where you stand.”
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