Reader Q: Will I lose my state second pension when the new flat rate pension comes in?

1 min Read Published: 10 Jul 2013
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 Reader Question:

When the new flat rate pension comes in April 2016 will I get the new fixed £144 pension or my higher SERPS/Additional State pension of £157.99 as forecasted ? My date of birth is 15 Sep 1951, I retire on 15 Sep 2016. I have over 35 years of NI contributions.

My response:

The introduction of the new flat rate pension will bring an end to the state second pension when it is introduced in April 2016.

However, under the proposed changes anyone retiring after April 2016 who has built up a state second pension entitling them to more than the flat rate £144 a month (available to those with 35 years of National Insurance Contributions) will keep the higher value. The amount over the flat rate is known as the 'protected payment' and will increase in line with the CPI measure of inflation when in payment, unlike the flat rate pension which will be increased by at least the growth in average earnings.

Also, it is worth pointing out that it will not be able possible to accrue any more entitlement to an additional state pension after April 2016.

Obviously the only way to be sure that what  you will be entitled to when you retire is to get a State Pension forecast.


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