OVER 10,000 retirees will see their state pension drop by more than £3,500 a year from April.
That’s because the government is cutting the extra payments for “adult dependents”, worth up to £70 a week.
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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.
How can I check my retirement age?
IF your pension is something that is on your mind, then you might be wondering what age you can retire.
Firstly, use the government’s tool to check your state pension age.
Next check retirement ages on workplace pension schemes – Aviva says this can massively impact your windfall once you enter your golden years.
For advice, you can contact The Pensions Advisory Service for free online or on 0800 011 3797.
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.
“Losing over £3,500 per year over night will make a material difference to the standard of living of those who are affected.”
A DWP spokesman said: “The ending of ADIs was part of a package of reforms in 2010, which meant that overall more women received the full basic state pension and more generous national insurance credits for carers were introduced.
“After April 6 ADI recipients may be eligible for a means-tested benefit such as universal credit or pension credit.
“Those already in receipt of a means-tested benefit should see no change to their income.”
The state pension is rising by 3.9 per cent in April giving pensioners an extra £343 a year.
Meanwhile, hundreds of thousands of women could be entitled to an extra £129 a week in their pension pot.
Plus, we explain how to boost your state pension by up to £250 a year.
