UK. More than 10,000 retirees set to lose £3,500 a year in state pension
That’s because the government is cutting the extra payments for “adult dependents”, worth up to £70 a week.
In total, 11,000 retirees are expected to lose a collective £33million, according to a Freedom of Information request by Steve Webb, policy director of insurer Royal London.
The so-called “adult dependency increase” (ADI) is typically paid for a partner who is below state pension age but who is financially dependent on someone receiving the basic state pension.
These extra payments closed to new applicants in 2010, but those who were already receiving them at the time were able to carry on claiming it.
But from April 6 this year, all these payments will stop, regardless of when you started claiming.
For someone claiming the maximum payment, this would mean a yearly income drop of £3,640. Although, you may be able to apply for pension credit or universal credit to make up for the loss.
Mr Webb said the changes will come as a “nasty shock” to the retirees who are relying on the payments.
He added: “It seems penny-pinching of the government to take this money away when the addition is gradually working its way out of the system in any case.
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