New State Pension v Old State Pension
People who reached state pension age before April 2016, are entitled to the basic state pension plus any additional state pension they have built up.
Those who hit state pension age after April 2016 will receive the new single-tier state pension.
If you’re entitled to the full new single-tier state pension your weekly payments will increase by £4.25 taking them from £164.35 to £168.60.
This means that you’ll get an extra £221 in state pension by the end of the 2019-20 tax year – bringing your annual state pension income to £8,767.20.
BUT if you receive the basic state pension, you’ll get a weekly boost of £3.25; increasing your payments from £125.95 to £129.20.
Over the 2019-20 tax year, basic state pensioners will receive just an extra £169 a year, making the overall annual income £6,718.40.
Why are we paying those who retired before April 2016 a second class pension? The contributions were the same value so why has it bought a second class pension? Over two thousand per year or – using an average of a person drawing their pension for twenty years means that those on the old system will LOSE over £40,000!