Millions of pensioners could miss out on the full state pension following confusion over the contracting out scheme.
Reforms last year fixed the state pension at £159.55 a week, however the amount received depends on a person’s national insurance record.
Those who were contracted out will receive a lower state pension to reflect the period they paid less National Insurance contributions.
Contracting-out was in place from 1978 until April last year, allowing savers to work towards a basic state pension, as well as an additional state pension.
Those who contracted out their additional state pension were offered a 1.4 per cent rebate by the Government if they put the savings in a separate pot such as a company or private pension plan.
However, according to The I newspaper 90,000 people were denied the full state pension in the first five months of the new scheme due to this, with thousands claiming they were under the impression they would receive the full flat state pension rate, with some even unaware they were contracted out in the first place.
The Department for Work and Pensions has said that despite the confusion no one would be losing out as those that paid less from their basic state pension should benefit from their other pension
He added: “Private or occupational schemes will, in most cases, provide a pension at least equivalent to the additional state pension foregone.”
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