The new flat rate state pension is on the way – with fewer than 600 days to go before pensioners can start drawing their cash.
April 6, 2016 is the date to keep in mind – but if you are a landlord, do you know exactly how much you will get?
Probably not is the answer.
The carrot the government is dangling is for all women born after April 5, 1953 and all men born after April 5, 1951 is a state pension of a minimum £155.86 a week, equivalent to £8,104 a year..
The problem for landlords is qualifying for the full payment.
If a professional, full-time landlord has not clocked up 35 years of national insurance contributions, then they will receive a reduced amount.
Many landlords believe they have enough qualifying years, but that’s because the current rules only require 30 years to qualify for the full state pension.
The Department of Work and Pensions (DWP) has calculated only 20% of retirees are likely to receive the full amount before 2020, but from then 75% of retirees can expect the full payment.
Under the triple lock, the pension should be worth £172 a week or £8,946 a year by then, assuming a minimum 2.5% a year cost-of-living increase.
Pensions minister Steve Webb said: “The new state pension will iron out a lot of wrinkles under the current system and offer a fairer deal to those who have felt hard done by under today’s rules.
“People will know how much to expect when they retire and can make better financial plans for their later lives.”
For landlords who are not sure of their state pension entitlement, the DWP is running an online inquiry service from later this year through the .gov.uk web site.