State Pensions: The Basics
Did you know that as well as being accountants, tax consultants and business advisors, we also offer pension guidance? We regularly get asked about the State Pension and how it works, so here are some points from our team of finance experts.
What is the State Pension?
The State Pension is a regular payment from the Government, which most people can claim when they reach the State Pension age (more on this below). The amount you will receive depends on your National Insurance record, as you need at least 10 years (not necessarily consecutive years) of NI contributions to qualify for a State Pension and 30 years to qualify for a full State Pension. If you need help working out whether you will qualify for a full State Pension when the time comes, get in touch with our team today using the contact form below.
The State Pension age
The State Pension age is currently 66 but this will rise to 67 between 2026 and 2028 and then rise again to 68, most likely between 2044 and 2046 (although it could be sooner).
How much is the new State Pension?
The current (2022-23) rate of State Pension is £185.15 a week, although this changes regularly. Each year on the first Monday on or after 6th April, pensions are adjusted by the Government in line with the current cost of living.
Should I have a personal pension too?
Yes, everyone should have at least one additional pension to complement their State Pension. Many people have workplace pensions and there are numerous other ways to plan for retirement, such as Lifetime ISAs and savings accounts, each offering unique benefits and levels of tax efficiency. For tailored advice, contact our team today.
Ask us for pension advice
Looking for expert pension and retirement planning advice with the personal touch? Call our Northern office on 01482 235575, our London office on 0207 885 0605, or fill in the contact form below.
Tagged as: Personal Wealth
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