New £144 State Pension: How does it work?

Know how the new £144 a week State Pension will affect or benefit you when you retire.

14:46 21 January 2013

The government has announced a new flat-rate of £144 a week State Pensionthat will take effect in April 2017.

 

As the name implies, everybody who’s eligible for State Pension will automatically receive £144 a week when they retire. But is it beneficial to everyone? Some people do not think so.

 

Based on the changes, it seems that the new flat-rate will mainly benefit the low-earners and the self-employed.

 

Those who are eligible for higher pension will also find the new scheme not favourable at all.

 

It is thought Pensioners will only be eligible for the new flat rate if they’ve paid NI contributions for 35 years. The minimum number of years to start receiving a State Pension will be ten.