Monday, 14 January 2013

Pension changes

oakbookkeepingservices.co.uk   Your local  Bookkeeper based in Reading.

The Government has announced a new flat-rate State Pension of £144 a week, which will be introduced in April 2017.  Pensioners will now only be able to get the full State Pension if they’ve paid NI contributions for 35 years, instead of the current level of 30 years.

As the Second State Pension will be phased out under the new system, everyone will be paid the same amount and there won’t be a choice to opt-out.  The self-employed will benefit from this as currently they are unable to contribute to the Second State Pension.