For many years everyone has complained about the country's
over-complicated State pension system. Now the Government has
published its White Paper on State pension reform, and people are
still complaining!
The White Paper proposes a flat-rate pension of £144 a
week for everyone from 2017. Naturally this pension has
qualifications – you only receive the full £144 if you
have paid National Insurance contributions for 35 years – but
no-one ever got something for nothing.
There will be a vast saving in administration costs, as the
complicated State second pension, which was related to earnings,
disappears. National Insurance contributions will now be the
same for everyone. This does mean some workers will now pay
1.4% more than they used to – but that goes to pay for the
difference between the current basic State pension (£107) and
the new amount of £144.
