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WE’VE teamed up with Andrew Tully, technical expert at financial giant Canada Life, to answer some of your recent questions on the state pension.
Q
HOW much will I receive in state pension?
A
THE new pension was introduced in April 2016 and is currently worth £175.20 per week for those who qualify for the full amount. To show how valuable the state pension is, it would ‘cost’ you around £302,000 if you were looking to generate that annual income (and rising each year) using an annuity.
Q
A
NO, you will only receive the full amount if you have a full 35-year national insurance record and haven’t previously been contracted out.
To complicate matters further there was a significant lock in future – a less generous system – but that has yet to be confirmed.
Q
WHEN can I start claiming the state pension? change to state pensions for on your record if the new
A those reaching pensionable state pension had been in FOR men and women the age after April 2016. place at the start of your current state pension age
If you had qualifying work working life (35 years). is in the middle of moving years before April 5, 2016, the So, your starting amount from age 65 to 66. It will DWP works out your “starting could be less than, more than reach age 66 for men and amount” on the new pension. or equal to the full new state women by October, and then
It is the higher of two pension – yes, we know, it’s increase to 67 for men and amounts: utter confusion. women by March 2028.
■ What you would have got It’s intended that it will then Q under the previous state HOW can I check out what increase to 68 for both men pension system up to April 6, I’m going to receive? and women by March 2046 2016 (30 years) plus an (affecting people born after
A allowance for the new scheme YOU can get a pension April 5, 1977), although this for years worked after 2016. forecast by filling in form hasn’t been confirmed.
■ Or it’s the amount you get BR19 available at gov.uk.
Q
The DWP will inform you CAN I defer payment if four months away from your I’m planning to continue state pension age; do nothing working? and you will automatically
A defer payments. YOU can defer but it must
At the moment benefits be for at least nine weeks, have a triple lock rising in line giving you a 1% increase – so with the highest of a fixed around 5.8% for each year 2.5% or average earnings or you defer. inflation. The extra amount is paid as
There has been speculation income with your regular that we will move to a double state pension and is taxable.