The number of people who will be relying on the state pension as their sole income when they retire is growing rapidly. But millions of people could miss out on the full “flat rate” pension. Nearly 60% of people who retired last year were surprised to find they were not entitled to the full £155.65 per week payment. From the beginning of April 2016, to the end of August 2016, that added up to 90,000 retirees getting less than they had hoped for.
BT reports –
“Then-Chancellor George Osborne pledged the new rate “would be simple; it would be based on contributions; it would be a flat rate, so people know what to expect”… However, it seems many people expecting the full rate have been surprised to learn this won’t be the case… It’s particularly concerning for anyone reaching retirement age who thought they were due a larger pension payout but don’t have enough time to plug the surprise gap in their income… To get the full rate, you must have accumulated 35 years of National Insurance contributions – five years more than under the old system… If you have less than 10 years of contributions, you’ll receive nothing. Anyone in-between will get a lower proportion.”