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Ask Justin

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Will I lose extra state pension?

Retirement | State Pension Helpful? 10

Asked by malci, submitted 01 November 2010.

Open Quote Can you please help. I have read about the proposed increased state pension at 65 . I am currently 57, 58 in January 2011. I was relying on my state pension at 65 to be £199.27 per week, as I paid high rates of tax and N.I. whilst working for 37 years. Will this still be the case or will it be reduced under the proposed new rules?End Quote

Answered by Justin on 02 November 2010

I'm afraid it's too early to tell as at present there are no firm proposals, other than the Government vaguely saying it would like to introduce a flat £140 weekly state pension by 2015.

If plans for a flat state pension do go ahead I think there's a reasonable chance existing SERPs/S2P benefits that take the total state pension over £140 per week (or whatever it ends up being) will be preserved, if for no other reason than it would cause immense anger amongst those affected - of which the majority may well be potential Tory voters.

As soon as there is any concrete news I'll put an update on the site (although you can bet it'll be all over TV and the newspapers).

At least you'll just escape the planned increase in state pension retirement from 65 to 66. The age will gradually increase to 66 between December 2018 and April 2020, affecting men born after 5 December 1953 and women born after 5 April 1953 (the reason for the difference is that the retirement age for men and women will harmonised at 65 by November 2018).

Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

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Readers' Comments (1) - To post a comment please register or login .

Comment by malci at 4:58pm on 02 Nov 2010:

Once again a fast informative and proffesional response. many thanks.