Basic State Pension
Everyone who pays National Insurance contributions for a certain number of years qualifies for all or part of the Basic State Pension (currently £115.95 per week) when they eventually reach State Pension age. Some people will also qualify for Additional State Pension based on their earnings from employment however, self-employed people will only qualify for Basic State Pension, not Additional State Pension. You can request a statement to find out how much you can expect to receive by following the relevant link on our Useful Links page.
There are changes being made to the state pension and when you’ll be able to receive it. The age at which you can retire will depend upon your sex, when you were born and whether or not you are due to retire before December 2018.
New legislation is bringing inline the age that men and women can retire and the overall retirement age is slowly being increased for everyone.
State Pension age is currently 65 for men and depending on when a woman was born it is currently between 62 and 65. By 2020, pension age for men and women will be 66, and 67 between 2026 and 2028. This will continually be under review and so is likely to change in the future.
All personal pensions (including stakeholder pensions) and the majority of workplace pensions are defined contribution schemes which means that the amount in your pension pot at retirement will depend of many factors such as how much you have paid in, the charges within the scheme as well how your investments perform over the time period they are invested.
By 2018, all employers must offer a workplace pension by law. If you’re currently employed you may already have heard about the ‘automatic enrolment’ scheme. If you are employed by a small to medium size employer it may be that your company will be enrolling you into their workplace pension soon.
It’s worth remembering that the earlier you start saving for retirement the more time there is for your pension to grow.
The Government can change the rules about State Pensions at any time as so having other pension provision in place will ensure that you’re not solely relying on the Basic State Pension later in life.
Should you have a pension related question or if you’d like to make an appointment to see an Adviser please complete the form below and we’ll be in touch with you shortly.
Please note: We do not offer financial advice over the telephone