State Pension

Have you thought about retiring?

Have you thought what the state pension might provide you as an income in later life?

You’d be glad to know your not the only one.

In order to achieve the full state pension, current legislation states you need a maximum of 35 years national insurance contributions. With this you can expect to receive an amount of £175.20 per week (£9110.40 pa)

To qualify for a state pension you need to have at least 10 years national insurance contributions.

For those who have taken time out of their working career will automatically qualify for a credit towards their state pension until their child reaches 12 years old.

To calculate how much of a state pension you could receive, take the monetary amount of £175.20 and divide this by 35 (the full number of qualifying years), totals £5.01 pw.

Assuming you have only met the minimum of 10 years you could receive a state pension of £50.05pw (£2602.60 pa)
A further example would be say 30 years of national insurance contributions would provide you with a weekly income of £150.17 (£7808.91 pa)

The UK government has also allowed you to top up your state pension if you have missed any years by paying a top up national insurance contribution so you could earn the full state pension. This top up is currently £796 per missed year.

In our example above with 30 years contributions you’d have missed 5 years. To fully bring this back to the maximum years would therefore cost you £3980. This may seem initially costly, however this amount could be recouped after a short 3 years of claiming your state pension, in short if you are in reasonable health it is certainly worth considering topping this up as by the fourth year you will be replenished your original spend.

Now I must stress you also don’t need to take your state pension at state pension age, you could defer this. For each nine weeks this is deferred your state pension will grow by 1%.

Please note the above figures are based on current legislation and figures set by the government and can be subjected to change.

I’d be happy to discuss these details further on 01483 654135