The single-tier pension: a simple foundation for saving
The government's plans to reform the current state pension into a simple single-tier pension.
On 14 January 2013, the government published the white paper ‘The single-tier pension: a simple foundation for saving’. It outlines proposals to reform the State Pension into a single-tier State Pension. The white paper also includes proposals for a regular and structured mechanism with which to consider changes to the State Pension age in the future.
On Monday 18 March 2013, the government announced that the single-tier pension will be introduced in April 2016.
The ‘Single-tier State pension fact sheet’ and the note on ‘National Insurance credits and the single-tier pension’, are based on the single-tier pension starting on April 2016. The other documents published here reflect the position at the time they were published – which was that the single-tier pension would be introduced in April 2017 at the earliest.
This reform will affect people who reach State Pension age from the time it is introduced. Current pensioners and those reaching State Pension age prior to introduction of the single-tier pension will not be affected and will continue to receive their State Pension in line with existing rules.
These reforms will provide a foundation to support automatic enrolment launched in October 2012, which will see 6 to 9 million people saving more, or saving for the first time, into an occupational pension.
The Pensions Act 2014 contains provisions to reform the State Pension system and implement the single-tier pension.
Note on the cohort of women born between 6 April 1951 and 5 April 1953
We’ve published a note that explains the effect of the single-tier proposals on women born between 6 April 1951 and 5 April 1953. It takes into account the government’s announcement that the single-tier pension will be introduced in April 2016.
Last updated 2 July 2013 + show all updates
Documented added entitled The single-tier pension: transistion and contracting out. The document explains the reasoning behind the two valuations taken at the introduction of the single-tier pension.
Added note on National Insurance credits and the single-tier pension.
Added new publication: National Insurance credits and the single-tier pensions.
Updated information with references to publication of the Pensions Bill.
Updated to include a link to a note explaining the effect of the single-tier proposals on women born between 6 April 1951 and 5 April 1953