MPs launch inquiry into new State Pension

The Committee is particularly concerned about people who are close to retirement now and may have done most or all of their retirement planning and saving under the "old" system.

It added:

"Although in the long term the reforms will simplify the State Pension, the transition period will be long and complex, and there is a lot of uncertainty among people who will be affected about the impact of the reforms, especially for those now closest to State Pension age.

"While many people are expected to be better off, people with for example less than 10 years of National Insurance contributions will no longer receive any State Pension, and people will no longer be able to count on a percentage of their spouse’s pension after their death. People need a good understanding of what to expect from the New State Pension to aid retirement planning, and avoid confusion and shocks."

Jeremy Quin MP, Committee Member, said:

"There have been numerous major changes to pensions over the last few years. The introduction of the new State Pension from next April is another.  It will affect millions of individuals of working age and it is critical that the changes and how they will effect retirement are clear and easy to understand.  This inquiry will be looking closely at the implementation of the new State Pension and the Government’s communication strategy around it."

Chair of the Committee, Frank Field MP, said:

"Our predecessor Committee’s report on State Pension changes stressed need for good communications in advance of the changes. In addition, there is a group of women born between 1951 and 1953 who feel particularly aggrieved by the way they are affected by the transition to the new State Pension. There is a sense that Government has somewhat moved the goalposts in retirement savings without providing enough information about what are, in the end, complex changes, and a risk that some people may face a shock when they come to claim their pension.  It is important that groups most affected by the changes receive targeted communications that highlight the options available to them."

Tom McPhail, Head of Retirement Policy at Hargreaves Lansdown, added:

“The state pension reforms will ultimately lead to a simpler, more equal system and no one disputes that the transition from the current system to the new one will involve complex adjustments. What is incomprehensible though is that until recently the DWP seems not to have made any meaningful plans to communicate these changes to the people who are actually affected by them.”