Self employed are big winners from new state pension

6th April 2016


The self employed are set to be the big winners from the new state pension which goes live today.

The self-employed are now entitled to up to £155.65 a week compared to a previous maximum entitlement of £119.30 under the previous basic state pension says pension firm Aegon.

Aegon’s research shows seven in ten self-employed people are not aware of the new level.

Steven Cameron, Pensions Director at Aegon UK said:“For those self-employed individuals who reach state pension age from today (6 April), it’s a case of ‘What a difference a day makes’. Someone who reached their state pension age (currently 65 for men and 63 for women) on or before 5 April will continue to receive a state pension under the previous regime.

“The self-employed were excluded from the additional earnings related pension so their maximum possible state pension was £119.30. But those reaching state pension age on or after 6 April will receive the new state pension which can be up to £155.65 a week – an extra £36.35 a week.  With many people spending more than 20 years in retirement, some self-employed could gain almost £40,000 more from being eligible for the new state pension.”

“While this may come as a very pleasant surprise to the growing number of self-employed who reach state pension age in future, even at the higher level it is unlikely to provide a comfortable lifestyle in retirement. Unlike employees, this group are not benefitting from automatic enrolment into a workplace pension, making it even more important to make adequate private pension provision for themselves.”

Leave a Reply

Your email address will not be published. Required fields are marked *