Less than half British retirees to get full pension

Less than half British retirees to get full pension

Home Mon Jan 12, 2015 6:0PM
http://www.presstv.ir/Detail/2015/01/12/392794/UK

The UK government admits that less than half of all British pensioners will receive their full £150-a-week state pension from 2016.

The Department for Work and Pensions says only 45% of the 3.5 million people who will retire between 2016 and 2020 will receive the full annuity.

The new single-tier pension will from April 2016 replace the existing two-part system of basic state pension plus the state second pension (also known as Serps).

Now Rodney Shakespeare, a London-based professor of economy and political commentator, believes the pension system is being manipulated.

“The pension system is part of a general cutback in state benefits of one source and another. Behind this is a collapse of the real economy, and that is because the UK system like that of Europe and in the Western system generally does not put any money supply into productive capacity…It only puts it into the banks and those who have existing assets and it all ends up in a sucking up of wealth to the one percent,” he told Press TV’s UK Desk on Monday.

“Just about half of the people who are retiring in the next year or two are going to have much less in state pension and they had been conned and they had been deceived. They were allowed in the past, in addition to their taxes not to pay an element of the national insurance pension contribution,” Shakespeare went on to say.

Under the new system, employees will need to have 35 years’ of National Insurance (NI) contributions to obtain a full pension, compared to 30 before. The figures reveal that one in three retiring workers will be paid a state pension of no more than £133.56 a week rather than the £150 many have been led to expect.

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