David Cameron PM speaks at SAGA in Hastings

The video discusses the drawbacks of private pensions, where savings can reduce pension credit. It highlights the psychological impact of discouraging savings. From April 2016, a new single tier pension system was introduced, eliminating means testing and ensuring a decent pension for all contributors. This reform benefits those with unrecognized contributions, like parents or part-time workers, by counting all years as full contributions, providing a flat-rate pension.

What was a major issue with the old pension system?

• It offered high pension credits.

• It provided equal benefits to everyone.

• It encouraged people to save more.

• It penalized those who saved for their future.

What significant change was introduced in April 2016 regarding pensions?

• The introduction of a single-tier pension system.

• An increase in pension credits.

• A new tax on pensions.

• A decrease in pension amounts.

How does the new pension system affect means testing?

• It abolishes means testing for contributors.

• It increases the complexity of means testing.

• It introduces new means testing criteria.

• It reduces the pension amount for all.

Who benefits from the new state pension system?

• Those with previously unrecognized contributions.

• Only those with high incomes.

• Only full-time workers.

• Only retirees living abroad.

What is a key feature of the new state pension system?

• It requires additional contributions.

• It excludes part-time workers.

• It counts all years as full contributions.

• It offers a variable pension rate.