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Changes to state pension "will disadvantage millions"


New changes to the state pension are set to adversely affect millions of UK workers, who could be thousands of pounds a year worse off, according to the TUC.

The current state pension is to be replaced with a single-tier pension that will provide a worth of around £144 a week in today’s money. This will come into effect in 2016 and will affect anyone who reaches retirement age from then onwards.

The changes are likely to have the worst affect on low to middle-income workers, who are further away from reaching their retirement age. The report issued from the TUC confirmed that those on the average UK income of £26000 would lose out on around £29 per week from 2030, and losses would continue to increase over time for those retiring after that date.

There are thought to be around 20 million UK workers who will rely on the state pension to some extent when they retire, and the TUC has predicted that most of these people will have a smaller income when they retire than they would have had before the changes.

Frances O’Grady, the TUC general secretary said: “Many low and middle-income private sector workers, particularly those several decades away from retirement, could be thousands of pounds a year worse off in retirement”

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