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Bob Scott, partner at LCP said:"We have been expecting today's announcement for some time, and we are pleased to see that the Pensions Minister's plans to simplify the state pension system will be put into place.
Taking away the complexity of the current system, which is exceptionally confusing for individuals, and replacing it with a single payment can only be seen as a positive move. Importantly, for the man on the street, today's announcement also means that he or she will be able to save for their retirement without the worry that means testing will impact on the pension they will receive. Good savings practice now will not be punished at retirement.
On a note of caution, while today's announcement will mean that we can all be clear on what we will be entitled to receive in retirement, the state pension plus any benefits received through auto-enrolment into a pension scheme, are unlikely to be sufficient for retirement on their own. A good workplace pension will be more vital than ever to ensure that individuals receive a meaningful income in their retirement. Today's announcement will open the doors for companies to review the pension schemes they offer to their employees and ensure they are providing good value for their members."?
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