Young savers "robbed of £19,000" under new state pension

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13 Apr, 2016

Young savers "robbed of £19,000" under new state pension

Under the new state pension rules which came into force on April 6th, savers in their 20s will miss out on an average £19,000 each, deVere Group can reveal.

According to analysis from the Pensions Policy Institute, 3 out of 4 people will be worse off under the new flat rate system. The new rules will affect 6 million people in their 20s, and a further 5 million in their 30s will lose an average of £17,000 upon retirement.

After deVere Group previously reported that MPs had severely criticised the government for their handling of women on state pension, today’s release suggests that it is men who will be hit harder by the new state pension regulations by losing an additional £3,000 due to differences with the older state pension regulations.

Just a quarter of people in their 30s and a third of those in their 20s will be better off under the new system.

Furthermore, it is highly expected that the state pension age, which is the age you need to be before being eligible, will continue to rise over the years, as life expectancy continues to grow. deVere Group reported at the beginning of March how there were fears that the state pension age could rocket into the 70s within the next few decades.

If this were to happen, then it would mean young savers of today facing the combined challenge of losing money under the new rules whilst being required to work longer during their lifetime.

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