Personal Pension  

Government informs on pension changes

The government has launched a public information campaign to mark the fact it is less than 500 days until changes in the state pension come in.

Steve Webb, the pensions minister, (pictured) has urged people to make sure they know what the changes mean for them. He said: “Arriving in April 2016, the new state pension will help create a simplicity that hasn’t existed in decades.

“It will give workers the knowledge that there is a strong foundation upon which they can build their savings. This is a real game changer.”

The campaign will include press, radio and online advertisements. More than 18,000 people have already received a statement on how they can increase their state pension.

Under the new system, pensioners will receive approximately £150 a week or more if they have notched up 35 years of full-rate national insurance contributions.

The launch of the campaign coincided with the publication of research carried out for the department for work and pensions. This showed that 42 per cent of people yet to retire admitted they needed to find out more about saving for retirement, while 38 per cent try to avoid thinking about what will happen when they retire.

Adviser view

Kevin Edwards, director of Derbyshire-based Midland Financial Solutions, said: “We have had very little detail through on these changes, and while one or two clients are aware of them, they do not know the detail.

“If we haven’t seen a lot of information on it, then the public has not got much chance.”