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What is The New State Pension?

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As you may be aware, some major changes to the state pension came into force in April 2016, but what has changed? The new state pension is a regular payment from the government which you can claim if you are eligible and have reached the state pension age on or after 6 April 2016.
You will be able to claim the new state pension if you are:

  • A man born on or after 6 April 1951
  • A woman born on or after 6 April 1953

And have at least 10 qualifying years on your National Insurance record, the 10 years do not have to be consecutive and can include National Insurance credits and voluntary National Insurance contributions. The full new state pension has increased to £155.65 per week, but the amount you will receive will depend on your National Insurance record and the number of qualifying years.

Even at the full amount, the new state pension will only provide a small income for your retirement, if you are unsure if you are eligible or want advice on pension planning, our experienced financial advisers can advise on all aspects of the new state pension, pension planning and provide independent pension advice in Lincoln and across the East Midlands.

Should I Have Another Pension?

Although the government will provide those eligible with a new state pension, which is currently £156.65 per week (depending on your NI record), this is likely to be significantly less than your income and it is advisable to make your own “top-up” arrangements to secure a financially secure future for you and your family.

Aside from food and somewhere to live, you will want to remain in the lifestyle to which you have become accustomed, so unless you are guaranteed a large inheritance or windfall, then you need to provide yourself with a secure income which enables you to enjoy your retirement without money worries.

At Castlegate, a firm of Chartered financial planners, we offer independent, whole of market sourced, pension advice in Lincoln and across the East Midlands. We work with our clients to ensure that they have the best pension plan in place that meets their needs and is regularly reviewed to ensure that changes in personal circumstances have been considered.

There are a variety of pension options available and the best one for your requirements will depend on a variety of factors such as your employment status. Whether you are employed, self-employed or a director should be considered when planning your pension to ensure you are choosing the right plan.

Auto Enrolment Pensions

Under a new law called ‘Automatic enrolment’, employers (with at least one member of staff) must automatically enrol every employee between the age of 22 and state pension age that is earning in excess of £10,000 a year into a company-managed occupational pension scheme. Each payday, a percentage of the employee’s pay is deducted automatically from their salary or wages and invested in the scheme. The employer also contributes to the scheme on the employee’s behalf as does the government in the form of tax relief.

Personal Pension Plans

A personal pension plan helps you save money for retirement and is available to any UK resident who is under 75 years of age. You choose the pension provider and make the arrangements for paying the contributions to the plan. You can start a personal pension even if you have a workplace pension or if you’re self-employed and don’t have a workplace pension.

At Castlegate, we offer pension advice in Lincoln and across the East Midlands, if you are looking for a pension advice in Lincoln or the surrounding areas, please do not hesitate to get in touch to talk about the most appropriate financial products for your personal circumstances.

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