State pension changes will 'hit young workers'

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People born after the mid-1980s will suffer the most from proposed changes to the state pension, a think tank has said.

The Institute for Fiscal Studies (IFS) said young workers could get thousands of pounds less a year from the state if plans to introduce a single-tier state pension from 2016 are implemented. The IFS said that someone who was born in 1986 and who spends 35 years as a low earner would receive nearly £1,000 per year less under the proposed new system than under the current system. This figure could be nearly £2,300 per year for a high earner of the same age. People close to state pension age would likely see no change in the state pension income, the think tank said. The biggest g...

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