With Liz Truss recently confirming that the triple lock will remain in place (meaning the state pension will rise by 10.1% next April in line with inflation), we wanted to explain how the state pension works.
Martin Lewis recently estimated that paying voluntary contributions to your state pension could increase the income you receive by thousands of pounds. We would highly recommend checking your state pension forecast, and seeing if this is something you can do for yourself.
Helpful links:
Checking your State Pension forecast:
Claiming your State Pension:
More information on Adult Childcare Credits:
Applying for Adult Childcare Credits:
Wealth of Advice website:
Our Facebook page:
Send us an email: enquiries@wealthofadvice.co.uk
Financial Conduct Authority Register:
Chapters
00:00 – Introduction
00:34 – What is the State Pension and how much can you get?
01:43 – I have over 35 full years, but not the maximum state pension
02:33 – Voluntary Contributions
03:35 – “Grandparent Credits” / Adult Childcare Credits
04:09 – How do I claim the state pension?
04:27 – Deferring the State Pension
IMPORTANT: Matthew is a Chartered Financial Planner at Wealth of Advice, who are authorised and regulated by the Financial Conduct Authority. You can find us on the Financial Conduct Authority register, with the reference number 563909.
This material is provided for general information available from sources generally available to the public. It is not a personal recommendation. Past performance is no guide to future returns, and the value of your investments can go down as well as up, so you may get back less than you originally invested.
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The State Pension is a regular payment from the UK government that you can receive once you reach State Pension age. It is one of the main sources of income for retirees in the UK and is designed to provide a basic level of income for those who have reached retirement age.
The State Pension is funded through National Insurance payments made by workers during their working years. To be eligible for the State Pension, you must have paid a minimum amount of National Insurance contributions throughout your working life. The amount of National Insurance contributions you need to pay to qualify for the full State Pension is currently 35 years.
If you have not paid enough National Insurance contributions to qualify for the full State Pension, you may still be eligible for a reduced amount. This will depend on how many years of contributions you have made.
The current State Pension age is 66 for both men and women. However, this is set to rise to 67 by 2028 and then to 68 by 2037. The government has also announced plans to link the State Pension age to life expectancy in the future.
The amount of State Pension you receive is determined by your National Insurance contributions and is currently £179.60 per week for the full State Pension. However, this amount can be higher or lower depending on your individual circumstances.
It’s important to note that the State Pension is just one source of retirement income and may not be enough to live on comfortably. To ensure a comfortable retirement, it’s important to plan ahead and save for retirement through workplace pensions, personal pensions, or other savings vehicles.
If you’re approaching retirement age or want to plan ahead for your retirement, there are a number of tools and resources available to help you. The government’s Pension Wise service offers free and impartial guidance on retirement planning and the different options available, while the Money Advice Service also provides support and information on retirement planning.
In conclusion, the State Pension is an important source of income for retirees in the UK. It’s funded through National Insurance contributions and provides a basic level of income for those who have reached retirement age. However, it’s important to plan ahead and save for retirement to ensure a comfortable and financially secure retirement.
Why does the pension forcast tell me i have 44 paid yrs contributions, but doesnt tell me how many of those yrs i was conracted out for. So i might not get the full pension
But why bother at all, who cares, just get pension credit
Hi, could you tell me how to merge pensions from 2 countries? I worked in Italy for 6 years and obviously paid contributions then moved to UK in 2001….so I have been working 6 years in Italy plus 20/21 years in UK so far…. Who I need to talk to about it? Thanks
You get a miserable 7½ grand if you were born in or b4 1950, but 9½ grand if you were born after. How does that work and how is that fair?
Some of us are denied access to the Government Gateway because we do not hold a valid UK passport and a driving licence. Accordingly, I cannot check anything.
Hello. Thank you for the informative video. I have two questions 1. How late can I change my mind to delay retirement for both state and private pensions? 2. How much do pension / financial advisors charge to help plan pensions when one is 8 years from retirement age?
I have 42 years of contributions and will retire in 2025 aged 66, will I get more than the £185.15 pension given I have surpassed the 35 year threshold? also I currently work part-time (20 hours per week) in a carehome and recieve working tax credits & PIP due to a long term health condition – Will I still recieve the WTC & PIP when I get the state pension if I carry on working?
How accurate is the 'Gateway' forecast. And do these NI contributions of 30 plus years have to be paid consecutively over the last 35 years – or from anytime from which you started working?
If you're still around , it would be helpful to know as I'm hearing much conflicting information. Thanks.
The main issue with videos that try to explain the state pension is they gloss over why more than 35 years are required for a full new state pension. People contracted out of SERPS still received full credit for each year worked. People who started work before 2016 have a mixture of old and new state pension. In 2016 a calculation was done and the number of post 2016 years needed for a full new state pension was established. The 35 years for a full new state pension is only applicable to those starting work after April 2016.
I reached pension age before 2016, why do I get less than people who retire later than that, I paid full contributions for 50 years.
I went onto the government website and checked my contributions. I'm not eligible for new state pension till 1934, but have some gaps in my record and only 27 years contribution. The government website says I need 3 more years contribution. That would only make it up to 30 years and not 35 years total. Is that correct? I have decided to retire early, so wondering if I need 3 or 8 more years.
I have missed a year of my state pension 2009-2010,I will be 66 in 2025 as was born in 1959 but by that time then I would have contributed 38 years ,my question is do I still need to pay the year i missed of 824.00 by April this year even though I have already done 38 years by 2025?
The British Pension is the biggest scam going, and having to pay tax on it is a disgrace, you have already paid this when you work! These opt in pension schemes that you have to pay these days are also ripping people off!
You pay state pension for 35 yrs for a full pension and work for 50 yrs with no extra benifit for the extra 15 years you pay in,if a private pension company did the same the government would be on them like a ton of bricks claiming they're defrauding the people paying into the scheme
last year was my 35th year contribution for state pension but was still short by £5 per week at £180 per week. so hopefully with this years contribution Ill finally catch up to get my full state pension. Which will be in 2034.