The Department for Work and Pensions (DWP) looks set to spend £25m on a new campaign to encourage all those people who have benefits paid via the traditional benefits book from the Post Office to switch to having it paid directly in to a bank, building society or Post Office account.
Our View
If successful, this move will save millions in the administration of the pension benefits system. 13m people currently collect benefits from the Post Office. We doubt, however, that any cost savings will be passed back to pensioners in the form of pension payments increasing at a faster rate than inflation e.g. earnings, so that old age pensioners income would be able to keep pace with people working.
Did you know you can get a free state pension forecast on what benefits you are likely to receive in retirement? You can do this by completing a simple form called a BR19.
Visit our site Pensions Adviser.com to download a BR19 state retirement forecast form.