Refresh your PENSION
The Department of Work and Pensions’ tips to help you boost your retirement
1 Check what you can expect to get
The amount of new state pension you will receive depends on your National Insurance record. So you need to check what you’ll get. Anyone of working age can request a state pension statement at gov.uk/check-state-pension.
Find out if you’re eligible for National Insurance credits. These can be available to people who are out of work for a taking time out to raise a child aged under 12 and can count towards their state pension entitlement.
2 Add some more National Insurance contributions
If you have gaps in your National Insurance contributions record, there are times when you might benefit from filling them with voluntary contributions. You can check your contributions here: gov.uk/checknational-insurance-record.
3 Defer your state pension
If you’ve reached state pension after 6 April 2016, you could receive a 5.8% increase for each year that you defer. You can do it as long as you like. If you’re not sure how, contact the Pensions Advisory
Service. The downside is that you may have to pay tax if your income exceeds your personal allowance (currently £11,850).
4 Boost your pension contributions
It may be a stretch but small increases in contributions to your workplace pension can go a long way. Because workplace pensions
benefit from compound interest, the sooner you get money into a pension pot, the more value it will be worth at retirement. Even additional contributions of just 2% of your annual salary can add up to thousands over 10 or 15 years.
5 Increase your retirement income
If it’s right for you, working in later life in appropriate paid work could improve and maintain your physical and mental health. By retiring at the age of 65 instead of 55, a male average earner could have £280,000 extra income and increase their pension pot by 55%. A female who has had a 10-year career break and retires at the age of 63 instead of 55, and is an average earner, could have £180,000 extra income, thereby increasing her pension pot by an impressive 50%.