Living wage = state pension - £100

Living Wage

The Summer Budget introduced the concept of a National Living Wage for those age 25 and over from next April at the rate of £7.20 per hour.

 

The Summer Budget introduced the concept of a National Living Wage for those age 25 and over from next April at the rate of £7.20 per hour. For a 35 hour week, that equates to £252. Coincidentally, the new single-tier state pension also begins next April. The full rate for the new pension has not yet been set, but the Department for Work and Pensions (DWP) says it is £151.25 a week in 2015/16 terms.The £100 gap between the two underlines the fact that the new state pension still needs to be supported by private provision if you are to enjoy anything like a comfortable ‘living’ retirement.

 

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The information in this article does not constitute advice and should be used for informational purposes only. This content has been provided to Helm Godfrey by Taxbriefs.