State pension
What will I receive from the State when I retire?
The amount of basic State Pension (or old age pension) that you will receive on retirement depends on the amount of National Insurance contributions that you have paid during your working life. Depending on your individual circumstances, you may also be entitled to an additional Second State Pension.
The full basic Sate Pension in 2009 – 2010 is £95.25 a week. For a married woman using her husband’s National Insurance record, it is £57.05 a week. This means that if you are a married couple you could get a total of £152.30 a week combined. If you both qualify for a full basic State Pension, then this could be £190.50 a week combined. In all cases, you must remember that your individual circumstances may affect the amount you receive. Financial planning from an experienced financial planner is essential to ensure you have sufficient income in retirement.
You can get a State Pension forecast by following this link or go to our Useful website links page.
I don’t think the State Pension is going to be enough for my retirement
If you don’t think that the State Pension will be enough for your expenditure during retirement, then you should seek some independent financial advice and ask for pensions advice. Even if you are a millionaire, it is never too late to supplement your pension income, although the sooner you put a financial plan in place, the better.
People talk about changes to the State Pension, how has it changed?
Changes to State Pensions will start to take effect from 6th April 2010. These changes will affect everyone reaching State Pension age from the 6th April 2010 and a small number of people who have reached that age before that date.
Retirement age for the State Pension is currently 65 for men, 60 for women born on or before 5th April 1950. The State Pension age will increase for women born after this date to 65 between 2010 and 2020. Then, for both men and women, it will change from 65 to 68 between 2024 and 2046.
Most people will not need to do anything as the changes will happen automatically. Changes to the State Pension age will affect the age at which you can receive certain other benefits that you may receive.
Other changes will make it easier to get a full basic State Pension for many people with caring responsibilities. That can include, children under 12 (now or in the past), a sick or disabled person (now or in the past), or those who are or have been a registered foster carer.
What is the State Second Pension?
This is an amount paid in addition to the basic State Pension. Your entitlement to additional State Pension (from SERPS – State Earnings-Related Pension Scheme, or from the State Second Pension), is calculated when you claim the basic State Pension.
In April 2002 SERPS was reformed and renamed and is now the State Second Pension. It is designed to give more additional State Pension to earners, certain carers and people with a long-term illness or disability. By around 2030, the State Second Pension should be a simple, flat-rate weekly top-up to the basic State Pension.
Any questions about pensions advice and your State Pension?
Please call us on 01582 839280 or Email us.
