Pension reforms mean it will pay to save... eventually

The Department for Work and Pensions (DWP) said the more rapid reduction in means-testing - due to the introduction of the single tier state pension - will help people save more and have less taken away in benefit reductions. It explained for today's retirees for every ten pounds they have put into a pension, they will lose an average of three pounds in benefits entitlements. However, after the reforms people starting out in the workplace now who retire in 2060 will keep an average of nearly nine pounds in ten of what they save. The amount people's benefits are being reduced because o...