'Disappointing that single-tier pension mired in confusion'

Pension firms have called for greater clarity on the state pension, following the Queen’s Speech yesterday. The Queen delivered the traditional summary of the Government’s five year legislative plans in Parliament.She said: "Measures will also be brought forward to secure the real value of the basic State Pension, so that more people live in dignity and security in retirement."David Brooks, technical director at Broadstone, said: “I believe this comment was aimed at the basic state pension but it is up for debate how - or if - it will have any impact on the single-tier pension at all.{desktop}{/desktop}{mobile}{/mobile}“It is disappointing that the single-tier pension is becoming mired in confusion when it will be in payment in 11 months’ time. The level of payment is still not known and the lack of clarity around the calculation method means people are still unaware of what they will get. This represents a clear conflict with the original intention.”The Government has pledged to increase the Basic State Pension by a ‘triple lock’ , the higher of inflation, earnings or 2.5% a year up to 2020.Kate Smith, Aegon’s regulatory strategy manager, said this would be popular for existing pensioners.She said: “But tomorrow’s pensioners need clarity now on whether the triple lock applies to the new single tier pension from April 2016.“Remember that not everyone will get the full single tier pension due to complicated transitional arrangements.“People need certainty now, so they can plan ahead and live in dignity and security in retirement.“They need to be told as a matter of course how much state pension they will receive, rather than waiting until their 55th birthday. This information is also essential before deciding how to use the new pension freedoms.”

'Disappointing that single-tier pension mired in confusion'

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