The State Pension conditions have gradually changed, leaving many confused as to when they are allowed to claim it and how much they are entitled to.
The State Pension is a government funded sum of money which is paid to those of a certain age who have worked and paid into the pension previously. There are two types of State Pension, Basic and New. Let’s take a look at the differences between the two and which one will apply to you...
Basic State Pension
The Basic State Pension applies to men born before April 6 1951 and women born before 6 April 1953. The value of this pension increases in value each year based on whichever is highest from average growth of earnings, the percentage growth in UK prices as measured by the Consumer Prices Index, or 2.5 percent. As of April 2019, this value is currently £129.20 a week.
New State Pension
If you are a man born after 6 April 1951 or a woman born after 6 April 1953, then you will qualify for the New State Pension instead. You can claim this when you reach State Pension age, and you check when you will be eligible on the government website, but be aware that the State Pension age is constantly under review and will increase to 66 by October 2020. The amount you will receive can vary depending on how much you have paid in National Insurance during your time at work, however the full amount is £168.60 per week.
It’s never to early, or too late to start investing in your retirement. If you would like help planning your pension, please get in touch.