Too many people are missing out on their state pension entitlement following the introduction of pensions credit, according to pension expert Steve Bee.
Now interested parties have a chance to have their say on the new system. Scottish Life's head of pensions strategy Steve Bee has welcomed the announcement by the Work and Pensions Committee that it is to hold an inquiry into the introduction of the pensions credit system and the ability of the Pension Service to deliver.
Bee is a supporter of the proposal to give everyone a higher state pension and then to claw back from the pensions of those who don’t need the ‘credit’ element. In this way, the 1.25m pensioner households which are entitled to the credit but don’t claim would not be unnecessarily impoverished.
Currently only 2.55m of the 3.8m households entitled to the credit claim.
“What we are doing is paying out low levels of contribution-based State pensions that fall below the level of income we think is sensible,” says Bee, “and we have build a means-tested system for those who are missing out to use when claiming their entitlement.”
The Committee will be holding oral evidence sessions in the Autumn but for now welcomes written submissions from interested parties on a number of issues. These include: experiences of people claiming the credit; the contribution the credit makes to current and future pensioner incomes and feedback on the various means and suggested means of delivering service and benefits.IFAonline
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