The Pension altered on 6 April 2016 for those who are of state pension age after the date. This article is for men born on or after 6 April 1951 and women born on or after 6 April 1953.
The old rules were hard to understand, making it even harder to calculate how much amount you’ll get unless you were close to the claiming age. With the new changes, people will know from a much early time how much they’re expected to be paid, providing a firm base for their saving and retirement plans.
What Is State Pension
The state pension is a steady sum by the government which most people can get when they have reached the age. However, no two people get the same quantity. Your National Insurance record will specify how much you will get.
For many people, this pension is the only means of their income in retirement. For instance, they may also have money from a workers’ pension, another fund, and savings.
How It Works
The new state pension depends on National Insurance records of the retiree.
People having no such records before 6 April 2016 will need 35 years to qualify for the full amount of new pension when they reach the claiming age.
However, most people will likely have made or provided, National Insurance contributions (NICs) before April 6, 2016. When they are of pension age, in most cases, their new pension will factor in their records both before and after April 6, 2016. The new rules ensure that the Pension amount you get for your payments to 6 April 2016 is the same under new Pension as compared to the old laws, given that you are at least ten years from the age you’ll retire.
For the new pension, you will generally need at least ten years to qualify in your National Insurance records. The years before or after 6 April 2016 factor in, they don’t have to be ten years in series.
How much you get will usually depend on your own National Insurance record solely.
How Much Is State Pension?
Not everyone qualifies to get the full state pension amount; it depends on your National Insurance record. The total amount is at least above the minimum level of tested support. The full amount of the new pension is £168.60 per week (2019 to 2020 rate).
Work After Pension
Some people want to stay in a job after they reach pension age. If you work after the pension age, you need not pay NICs.
For many people, a fixed retirement age no longer exists (the age at which you retire). Also, all workers now have the right to work docilely and have it taken seriously by their boss. You, thus, have more options for when and how you retire from work.
Lastly, by retiring from work at 65 rather than 55, an average retiree can increase their pension sum by around 60 percent.