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Thursday 12 June 2014

New Single Tier State Pension

The government has announced that anyone who reaches retirement age with effect from 6 April 2017 may be eligible to receive the state pension at a rate of approximately £155 per week. This will replace both the current basic and earnings related state pensions.In order to be eligible,an individual will need to have at least 35 year's worth of National Insurance Contributions or credits. Individuals who have been contracted out of National Insurance may receive a lower amount. The detail of how this will be calculated is expected in late autumn 2014.

Anyone approaching retirement age in the next 10 years should request a State Pension Forecast to check their level of contributions.Anyone with a shortfall may be able to make this up by 'buying back' missing years.There are time limits for this top up - hence the importance of a State Pension Forecast. A new National Insurance Contribution will be introduced in October 2015 which will enable some individuals to buy up to an extra £25 per week pension.

Advice should be sought if you feel this may apply to you.