Pensions - Articles - Analysis on the impact of the new State Pension


The majority of millenials will see a notional loss from the new State Pensions" says the Pensions Policy Institute. The PPI has undertaken analysis of the Department for Work and Pensions’ (DWP) impact assessment of the new State Pension (nSP), to estimate the number of people of different ages who may be notionally better or worse off under the nSP.

 This analysis highlights that:
     
  1.   Approximately three quarters of people in their twenties are set to lose a notional average of £19,000 over the course of their retirement (6.3m of 8.4m expected pensioners). The 2.1m who will make a notional gain are expected to gain £10,000 on average;
    2.  
  2.   Approximately two thirds of people in their thirties are set to lose a notional average of £17,000 over the course of their retirement (5.1m of 7.7m expected pensioners). The 2.7m who will make a notional gain are expected to gain £10,000 on average.
 Chris Curry, PPI Director, said “As well as simplifying the State Pension system, the new State Pension also significantly reduces the cost of state pensions in the future.”
  
 “While the majority of millennials will see a notional loss of state pension income as a result of the introduction of the new State Pension they will benefit from greater clarity about what that income will be.”

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