Reforms 'to impact pensions for couples'

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Reforms 'to impact pensions for couples'

Fri 9th Dec 2011

The new Reform Bill could pose difficulties for individuals approaching retirement age in the future, with people seeing returns of £100 less per week than is currently the case, it has been revealed.

Charity group Age UK has argued pensioners in the future could be better off living alone, as this would entitle them to higher annuities under the new Reform Bill system of pensions calculation.

Michelle Mitchell, charity director of Age UK, said: "Just because one half of a couple is below pension credit age does not mean that their income needs drop."

She highlighted the plight of those who may have partners that are unable to work or who are unemployed in the run-up to retirement, as they will be significantly worse off than they are at present in the coming years.

Dave Prentis, general secretary of Unison, also recently noted the switch from the retail price index to consumer price index for pensions calculation is set to have a significant detrimental impact on UK pensioners, but the situation is likely to worsen as the gap between the two indices rises.

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