Single flat rate pension of £144 planned
Saturday 12 January 2013
Details of a radical shake-up of the state pension are due to be unveiled by the coalition on Monday.
A single flat rate, equivalent to around £144 in today's money, is set to be introduced for new pensioners from 2017 in a bid to simplify the system.
Some six million workers will face higher national insurance payments in future as the practice of "contracting out" the state second pension to employers is ended.
Those affected are expected to include more than a million private sector staff enrolled in final salary schemes, and an estimated five million public sector workers.
However, it is not clear how many will lose out overall as they are likely to receive a higher state pension than before.
Funds and firms could also alter their schemes and contribution levels to take account of the shift.
Some groups - such as women who have taken career breaks to have children and the self-employed - will be clear winners.
The Department for Work and Pensions confirmed that the White Paper is being published on Monday.
Iain Duncan Smith and his Liberal Democrat deputy at the department, Steve Webb, are believed to have overcome Treasury concerns to get final sign-off for the policy.
Malcolm McLean, a consultant with pensions experts Barnett Waddingham, said: "The concept of a single, simpler-to-understand state pension pitched at a level that lifts as many people as possible off means testing and encourages them to save privately to give themselves a better standard of living in their later years is very desirable if not essential in a society such as ours with an ageing population."
But he warned: "The task of bringing together the various diverse components that currently collectively make up state pension provision was never going to be easy and it is inevitable that there will be some losers as well as winners in the process of change."
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
£65000 - £80000 per annum: Recruitment Genius: Finance Director required to jo...
£15000 - £25000 per annum: Recruitment Genius: This is a unique opportunity fo...
£50000 per annum + 26 days holiday,pension: Ashdown Group: A highly successful...
£27000 per annum + pension + holidays: The Jenrick Group: A Quality Technician...