Some people’s state pension may be reduced due to a data issues.
According to report by Which, a number of state pensioners could see less in their bank accounts when they receive their payments.
Why is this? A number of pensioners have received letters that state their pension will be slashed.
According to reports, the government was given the wrong data about a number of pensions, meaning some Britons have been paid too much.
Now their payments will be reduced to make up for the overpayments.
A number of employees opted to ‘contract out’ their state pension in 1978.
This meant the paid less national insurance but would get a higher private pension.
Employers agreed to at least match the state pension they would have got if they did not contract out their pension, and this guarantee was called the GMP.
However, a mismatch in data as meant that HMRC has not deducted GMP from some people’s state pensions when they should have.
It is not yet known exactly how many people will have been affected.
How much is the state pension? The new state pension is £164.35 per week.
The is the full amount, however, you must have a certain number of qualifying years of national insurance to be eligible.
Martin Lewis pension advice revealed some big changes to much Britons will pay in.
The minimum total auto-enrolment contribution rises to eight percent (from five percent) of your pre-tax salary above £6,316 and below £50,000 (£43,430 in Scotland) in 6 April 2019.
The minimum employer contribution increases to three percent (from two percent) of your salary.
But there are some ways you can increase your state pension.
This includes deferring your state pension.
Deferring your state pension by a year can equate to an extra £600 in the bank.
Should you defer your payments? Experts at PensionBee explained all.
Pensions experts at Pensionbee told Express.co.uk: “Delaying your State Pension by just a few weeks could result in you receiving a higher weekly state pension amount, or even a lump-sum payment.”