Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • October 2015
10

MPs launch state pension inquiry

Open-access content Wednesday 28th October 2015 — updated 5.50pm, Wednesday 29th April 2020

The Work and Pensions Committee has launched an inquiry into the new state pension, which will be introduced in April 2016.

2

MPs will be investigating the Department for Work and Pension's communication strategy, the impacts on specific groups of people and the UK government's "administrative readiness" for the implementation.

The committee said there were concerns for people who are close to retirement and may have done most or all of their planning under the "old" system. 

The new system consists of a flat-rate single tier pension designed to offer a simpler pension. Men who were born after 1951 and women born after 1953 with at least 10 years of national insurance contribution are eligible to receive it. The full amount will be at least £151.25 per week, but the specific level will be set this autumn. 

MPs said the transition period to the new pension would be "long and complex" with "a lot of uncertainty".

The committee said while many people were expected to be better off under the new system, those with fewer than 10 years of national insurance contributions would not receive any state pension.

"People need a good understanding of what to expect from the new state pension to aid retirement planning, and avoid confusion and shocks," said the committee.

Frank Field, chairman of the committee, commenting on the impact on different groups, said: "There is a group of women born between 1951 and 1953 who feel particularly aggrieved by the way they are affected by the transition to the new state pension."

Field said the committee, under previous membership, had "stressed the need for good communications" in advance of the changes.

"There is a sense that government has somewhat moved the goalposts in retirement savings without providing enough information about what are in the end, complex changes, and a risk that some people may face a shock when they come to claim their pension," he said.

"It is important that groups most affected by the changes receive targeted communications that highlight the options available to them."

The deadline for written submissions is 30 November.

This article appeared in our October 2015 issue of The Actuary.
Click here to view this issue
Filed in
10
Topics
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Manager - Employee Benefits

£2958.18 - £3549.82 per month
Reference
145973

Manager - Employee Benefits

£2958.18 - £3549.82 per month
Reference
145972

Portfolio Management/Business Planning Actuary

London (Central)
£100000 - £125000 per annum
Reference
145971
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ