BENEFITS EXPERT: Reduced Earnings Allowance changes explained once you reach pension age

By Lance Fugle
Published 27th May 2022, 16:00 BST
If you are not working then Reduced Earnings Allowance becomes Retirement Allowance, will either be 25% of your current Reduced Earnings Allowance or £18.86/week, whichever of these two figures is the lowest.If you are not working then Reduced Earnings Allowance becomes Retirement Allowance, will either be 25% of your current Reduced Earnings Allowance or £18.86/week, whichever of these two figures is the lowest.
If you are not working then Reduced Earnings Allowance becomes Retirement Allowance, will either be 25% of your current Reduced Earnings Allowance or £18.86/week, whichever of these two figures is the lowest.
Q. I am approaching state pension age soon and have received my pension forecast. I currently receive Reduced Earnings Allowance as I have vibration White Finger. I have been informed that once I reach pension age then my Reduced Earnings Allowance will decrease in value. Is this correct and if so why.