The government has set out its intention to "transform pension saving in this country" with the launch of a green paper consultation on a single-tier £140 state pension.
If approved, it will replace existing means-tested arrangements for new, but not existing, pensioners from 2015 or 2016. The current full state pension is £97.65-a-week, but can be topped up to £132.60 with pension credit. This is to be replaced by a new £140 flat rate, with inflation expected to push this up to £155 by the time it comes into effect. Pensions minister Steve Webb unveiled the consultation - A state pension for the 21st century - today, saying it was a radical redesign of the current system that would, over time, lift millions out of means testing. Webb said: "The...
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