Those who reached State Pension age on or after 6 April 2016 became the very first recipients of the new, so-called ‘flat rate’ State Pension. However, almost everyone is receiving a different amount to the headline flat rate of £155.65 per week.
Of the many reasons why this is, the two main ones relate to the old system, which featured an entitlement to additional State Pension for many and lower State Pensions for those who had been ‘contracted out’.
We recommend that anyone who is planning for their retirement gets an up-to-date pension forecast. You can do this online at at www.gov.uk/check-state-pension (although this service is still in the testing stage) where you will find details of other ways to obtain a forecast.
Then all you have to do is understand it!
The Work and Pensions Committee raised concerns earlier this year that information sent to individuals regarding when they will receive their State Pension and its expected value were insufficiently clear and open to misunderstanding. But it is far better to have this information than no information at all.