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Why is new state pension higher than old?
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If you believe that you will believe anything.arnoldy said:Why is new state pension higher than old?
It is to reduce the poison of means testing. Under the old system if you did the right thing and put away a modest amount for old age you would find your self no better off, in fact usually worse off, than those on means tested pension credit. The new system is a refreshing step away from means testing to personal responsibility and reward.It’s basically a way of taking extra state pension from those who pay in more and nothing else.0 -
The impact of single-tier pension on means-tested benefit eligibility is usually very much overstated. DWP analysis showed only a small impact on the proportion of pensioners entitled to means-tested benefits under single-tier relative to the pre-2016 system.
The chart below shows expenditure change - it doesn't look much, but a reduction of 0.5% of GDP over the coming decades is a noticeable cut.
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