The fact you are looking for, or already receiving advice from us would indicate that a career in financial planning is not for you. We’ve designed our resource centre so that you can dip into subjects or linger on those that interest you most. Nothing beats personal advice in our view but we hope you find the information available here useful.
Do you really know your state pension age?
This used to be a simple question – but do you actually know the age at which you qualify for the State Pension? The state retirement age isn’t always the trigger for retirement but the income it provides often plays a significant role in retirement planning.
The age at which people become eligible for State Pension is changing, but the administrative task for government that sits behind making this change is a mammoth challenge that will take years to complete. Indeed, the transitional stage between now and completing the change is incredibly complex.
However, there are three steps you can take to help you gain a better understanding of the impact the changes will have on you.
Step 1 – When can I retire?
The first thing to do is to understand when you are eligible for your State Pension. This is not as easy as it sounds because the calculation is dependent on many things, such as your date of birth and sex.
We could produce a very complex table heavily laden with caveats and asterisks but by far the quickest and most accurate way to determine your State Retirement age is to use an on-line calculator.
The best one we have found is at the Pensions Advisory Board, an independent voluntary organisation funded by the Deptartment of Work & Pensions.
Step 2 – How much?
As well as the retirement ages changes a new flat rate pension will be introduced in April 2016.
Currently, providing you have made sufficient National Insurance contributions, the Basic State Pension is £113.10 per week. This may increase if you qualify for the Additional State Pension.
The new flat rate State Pension will be no less than £148.50, although the exact level will not be set until autumn 2015.
Irrespective of when you retire everything is dependent on the National Insurance contributions you have made throughout your working life. As you might expect, this is not always that easy to determine.
The best place for up-to-date information on National Insurance contributions and how they may affect your State Pension entitlement is on the Government website and you can find that here.
Step 3 – Speak to us
The changes being introduced to the State Pensions system are the most wide-ranging in decades. The question is not whether these changes will affect you, but will you be prepared for the changes when they do affect you?
The trick is not to let the changes creep up on you. Better to work with us now to incorporate them into a structured retirement plan that can be monitored and actively managed.
- work out your State Retirement age
- consider your State Pension in the context of your monthly expenditure
- sit down with us to develop a retirement strategy