View more on these topics

Govt to announce £25 a week state pension boost

The Government is set to confirm details of a scheme to allow existing pensioners to boost their state pension entitlement by up to £25 a week.

Under the plan, outlined as part of the Autumn Statement in December, anyone who has reached state pension age or will do so by April 2016 will be able to pay between £900 and £25,000 to top up their pension.

According to The Daily Mail, the Government will increase peoples’ weekly state pension by around £1 for every £900 paid in. A senior Government source confirms this figure is “in the right ball park”, with full details to be published in the coming weeks.

Speaking at a Headlinemoney event last week, pensions minister Steve Webb said the scheme will particularly benefit women.

He added: “I’ve had pensioners say to me, ‘I’m getting a lousy return on my savings, Steve, please can I give you my money?’ And I felt I had been saying no for too long.”

Hargreaves Lansdown head of pensions research Tom McPhail says: “On the open market, an inflation linked single life annuity for a 65-year-old currently costs £1,468 for each £1 a week of income.

“This suggests the Government may be offering this new scheme on very generous terms.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm