Ten million workers could be forced to contribute more National Insurance to pay for their retirement under new Government proposals.
More at TTel.
Public sector workers, those in final salary pension schemes and the self-employed would be expected to pay more if pension ministers go ahead with plans to radically overhaul Britain’s state pension, experts warned.
Under the current system, workers in final salary schemes benefit from a reduction in the amount of national insurance they pay due to being contracted out of the second state pension, a top-up to the basic state pension. Similarly, the self-employed pay less National Insurance but get no second state pension.
But the Government hopes to simplify the existing complex system and unveiled a Green Paper yesterday which suggested a flat rate weekly state pension of £140.
It would bring an end to existing additional payments such as the State Second Pension for new pensioners.
More at TTel.
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