NAPF Welcomes UK State Pension Overhaul
09 May 2012 (PLANSPONSOREurope.com) -The UK’s National Association of Pension Funds (NAPF) has welcomed plans to overhaul the UK’s state pension announced in today’s Queen’s Speech.
The BBC reports the Queen's Speech outlined plans for the current full state pension, of £107.45 a week, which can be topped up to £137.35 with pension credit, to be replaced by a new £140 flat rate, with inflation expected to push this up to £155 by 2015 or 2016.
The state pension age will rise to 66 for both men and women by 2020, while the speech outlined plans to increase the state pension age further to 67 between 2026 and 2028 as well as for the state pension age to continue to rise auto
matically in line with longevity.
Joanne Segars, NAPF Chief Executive, said:
“We are delighted by this confirmation of the Government’s commitment to a long-awaited, landmark reform.
“This is another big step towards a simpler, more generous state pension that no longer penalises people for saving. A new system will take millions out of means-tested benefits and will encourage people to take control of their own age by saving towards it.
“The NAPF has been calling for a single-tier state pension for many years. This is the much-needed foundation on which people can build their own savings, knowing that it pays to save. And it will help ensure that auto-enrolment is a success.
“We are all living longer, so it is inevitable that retirement ages move upwards to reflect that. The trade-off for working longer must be a better state pension come retirement.”