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State Pension
Basic State Pension
You can claim the basic State Pension from State Pension age: currently 65 for men and 60 for women born on or before 5 April 1950. The State Pension age for women born on or after 6 April 1950 will increase from 60 to 65 between 2010 and 2020 It will increase for both men and women from age 65 to 68 between 2024 and 2046.
You can get a basic State Pension by building up enough 'qualifying years'. A qualifying year is a tax year in which you have sufficient earnings upon which you have paid, are treated as having paid or have been credited with, National Insurance contributions.
You don't have to claim your State Pension as soon as you reach State Pension age. You can claim it later and get a higher weekly amount or take the option of a one-off taxable lump-sum payment in addition to the normal State Pension.
Additional State Pension
You may also be entitled to an additional State Pension. For instance, if you're in full-time employment and make Class 1 National Insurance contributions.
When you retire and claim for a basic State Pension, any additional State Pension due will be added.
If you've been a member of a company pension scheme you may have paid a lower rate of National Insurance contributions which will have qualified you only for the basic State Pension. If you do this, most or your entire second pension will come from your company pension rather than the State Second Pension.
If you wish to discuss the above further or require information on any of our services, then please contact us.
Any reference to legislation and tax is based on FPP’s understanding of UK law and HMRC practice. These may be subject to change in the future. Tax rates and reliefs will also change and their value to you will depend on your individual circumstances. No guarantees are given regarding the effectiveness of any of the above strategies.