Millennial losers highlighted as single-tier pension launches

Three quarters of people in their twenties are set to lose an average of £19,000 over the course of their retirement, working out at £15 a week, as a result of the switch to the new single-tier pension which comes in today.

But 2.1m in that age group will gain £10,000 on average, as a result of the new system’s different qualification rules, working out at an average £8 a week.

Approximately two thirds of people in their thirties are set to lose £13 a week, adding up to an average of £17,000 over the course of their retirement.

The research found 46 per cent of people in their forties will lose out to the tune of an average of £10 a week, while 23 per cent of those in their fifties lose out, down on average £6 a week, and 400,000 people in their 60s will lose out on average £3 a week.

The PPI says these figures, which are based on DWP statistics, mask some extreme winners and losers. Some individuals could have received more than £50 a week more under the old system.

Chris Curry, PPI Director, said “As well as simplifying the state pension system, the new state pension also significantly reduces the cost of state pensions in the future.”

 

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