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The aim is to create a single personal allowance for all, regardless of age, but in a process the chancellor claimed would mean no current pensioner loses in cash terms.
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She is among 11,000 mainly low-paid workers whose jobs are now at risk, and 20,000 former and current pensioners whose pensions face cuts of up to 77%.
It will be open to current pensioners, and those who reach state pension age before 6 April 2016.
That cut will save $1.4bn over five years and means new recipients of the aged pension would get around $7 a week less than current pensioners, and new Newstart claimants would get $4 a week less – amounts that seem small but are essential for people already living on so little, Acoss says.
Current pensioners will also receive a lump sum to make up for any underpaid pension benefits since March 2016, when the scheme, in effect, was under PPF rules during an assessment period.
Retirees in Colorado, Minnesota and South Dakota are currently suing those states, which have passed laws that trim the benefits for current pensioners.
However, current pensioners were rewarded with a permanent annual winter fuel allowance.
They face cuts of up to 30% in their retirement income compared to current pensioners.
Current pensioners and those retiring before 2017 will have to settle for the current, less-generous, pension.
Whereas current pensioners are withdrawing far more than they paid into the system, today's workers will receive negligible or even negative rates of return on their contributions.
These rates are going to be frozen for current pensioners and from next year they will be scrapped for all people who subsequently turn 65.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com