New State Pension GBP155 Minimum

New State Pension £155 Minimum.

Detailed plans are due to be published next week detailing plans to reform the state pension and introduce a new flat-rate scheme to start in 2015 or 2016.  The current full state pension for men and women is £97.65 a week, but is topped up to ensure a minimum income of £132.60.  The current minimum income guarantee also makes sure that couples get £202.40 a week through means-tested pensions credit.

According to Hugh Pym, BBC’s chief economics correspondent, it is believed that inflation-linked increases will take the means tested guarantee up to around £155.  The flat-rate pension would only be available for new pensioners reaching state pension age.  

The planned reform would also mean the state second pension would be abolished, but the government would honour contributions that had already been made ahead of the changes.  Contracting Out arrangements would also come to an end.

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