A cut to a pension credit which rewards over 65s who have made additional savings for retirement, may mean thousands of pensioners will not benefit from the state pension increase this year.
An increase to the eligibility threshold and a reduction to the maximum amounts payable in the savings credit will mean many people will see a cut to their retirement incomes. The Telegraph reported one pensioner was told that their basic state pension payment will be increased by £5.30 a week, while payments under their savings credit will be reduced by £4.40 a week. Tom McPhail, head of pensions research at Hargreaves Lansdown said it would affect current retirees with private savings of a few tens of pounds a week. He said: "These are the people who can least afford to see a few...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes