This week it has been announced that the Pensions Bill has been passed into law, which will make the state pension easier to understand, whilst bringing a simple, single flat rate pension “a step closer”.
The reforms to the state pension are set to be introduced in April 2016, and will see a flat rate state pension set above the basic level of the means tested support; which according to figures from the Department for Work and Pensions will leave many better off.
According to the latest data published by the Department for Work and Pensions, the introduction of a flat rate state pension will see low earners and women better off in retirement; with estimates suggesting over half a million female employees will be roughly £400 a year better off.
Following the announcement that the Pensions Bull has been passed into law, the Pensions Minister, stated that the new state pension will reduce the current complex mix of additional and basic state pension; whilst also providing pension savers clarity about the income they will receive from the state upon retirement.
Although reports have suggested that following the reforms of the state pension, which will take place in two years time, more employees will be better off – at Birchwood Investment Management Ltd, we believe that everyone should start saving for retirement at the earliest opportunity.
This is why our experienced independent financial advisers are committed to providing a comprehensive retirement planning service, which is tailored to your individual needs and requirements.
Through our service, we will help you consider every aspect of your retirement – not just saving for it – to ensure that you are able to continue to live a comfortable life; whilst also making sure your money works hard for you both now and in the future.