Retirement expert advises people to learn about state pensions
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As Britons look ahead to their retirement, they can use various online tools to map out their state pension. This could help them gain a better understanding of a core part of their retirement income.
Here is a breakdown of the information available as future retirees look ahead to their post-working life.
State pension amount
People can find out an estimate of how much state pension they will receive online.
This can be done for free through the Government’s state pension forecast tool.
The tool is available to anyone who has not yet reached state pension age.
Therefore, people who have deferred their pension once reaching state pension age cannot use the service, even though they are not receiving anything at present.
The forecast tool provides an idea of how much state pension someone is due to get once they become eligible by reaching state pension age.
It may also tell Britons how to increase their state pension entitlement, if they can.
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The state pension is based on National Insurance (NI) contributions. The more qualifying years someone has, the more state pension they will be able to get.
To get the full state pension, 35 years of NI contributions may be required, and 10 years are needed to get anything at all.
Qualifying years are accumulated through working, but can also be earned by receiving certain benefits or making voluntary contributions.
That means if someone has gaps in their NI record which are preventing them from getting the maximum state pension, they could boost their entitlement using benefits or voluntary contributions.
The current full new state pension is worth £179.60 per week, but this will increase every year under the terms of the triple lock policy. By the time many people retire, the value of the state pension could be quite different to what it is today.
State pension age
The current state pension age is 66 in the UK, but it is not as simple as that.
People who retire in the future may not reach state pension age until 67 or even 68.
This is because the state pension age is set to increase in 2028, and again some time in the 2040s.
Fortunately, the Government offers another free online tool to help people find out when they will become eligible for their state pension.
It is simple to use, with the only information required being an individual’s date of birth.
This can be then used to tell someone when they will reach state pension age, as well as when they become eligible for Pension Credit and a free bus pass.
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