Pensions Minister, Andrew Smith, has issued details of a new lump sum payment of £30,000 that will be paid to pensioners who delay their pension until age 70.
Under the proposed deal, single pensioners who defer state benefits from age 65 to 70 would receive £20,000 and a married couple £30,000.
Our view
In simple terms, the Government is attempting to encourage people to work longer to age 70 by offering the lump sum sweetener.
What a load of tosh! - You can still work on and receive your state pension - you do not have to finish work anyway!- The current State Pension is £77.45 per week for a single person and £123.80 per week for married couples. - Allowing for inflationary increases at 2.5% pa - if you took your pension at 65, based upon current rates, single pensioners would get £21,169.72 and a married couple would get £33,838.48.
There is the argument though that if you have the lump sum up front, could you get a guaranteed return greater than above. Based upon current climates, we think not.
If you really think this is about giving more flexibility then think on! Does an employer want a 70 year old working for them? Some will, certainly at a 70 year old can offer advice and use a computer as easily as any other in fact a 70 year old probably has greater life experience to guide people, but what about manual workers?
Let us have the small print and we can probably give a more positive view.