State Retirement Pension

Anyone who reaches State Pension age on or after 6th April 2016 will fall under the new rules for State Retirement Pensions. People who reach State Pension age before this date will get their State Pension based on the old rules.

There are some key differences between the old and the new schemes.

• Did you know about the New State Pension?

  You can claim your State Pension when you reach State Pension age.  State Pension age is different for men and women (but this is changing) and depends on your date of birth. You can check when you will reach State Pension age on the gov.uk website:
  https://www.gov.uk/calculate-state-pension
  
  For those who reach State Pension age from 6th April 2016 onwards there is a new State Pension.
  
  The new rules affect men born on or after 6th April 1951 and women born on or after 6th April 1953.
  
  If you reached State Pension age before 6th April 2016, your State Pension will be calculated based on the old rules.
  
  What are the differences between the old and new State Pension schemes?
  
  Under the old State Retirement Pension scheme rules, your State Pension can be made up of:

  
  a basic State Pension, based on your National Insurance record and

  for some people, an earnings-related additional State Pension (also referred to as state second pension or SERPS).

  The new State Pension is simpler because it is a flat-rate pension, based on your National Insurance (NI) record alone; not based on earnings.
  
  The number of qualifying years on your NI record you need to get the maximum new State Pension is 35. Under the old scheme you needed 30 years. You need a minimum of 10 qualifying years to be entitled to any new State Pension.

  
  You pay NI contributions when you work and earn over a certain amount and you can be ‘credited’ with NI contributions when you are unemployed, or cannot work due to illness or disability, or you are a carer or you get Child Benefit for a child under 12 (or under 16 before 2010).
  
  The new State Pension is an individual entitlement, this means that in general you will not be able to claim on your spouse or civil partner’s contributions at retirement or if you are widowed or divorced.
  
  For more information on the new State Pension you can visit the gov.uk website: https://www.gov.uk/new-state-pension

• Pension Credit

  Did you know that around a third of people who could be entitled to Pension Credit do not claim it? You could be missing out on extra money – read on for more information!
  
  There are two types of Pension Credit: Guarantee Pension Credit and Savings Pension Credit. Some people get one or the other and some people can get both.
  
  Guarantee Pension Credit
  
  Guarantee Pension Credit is a benefit which people of Pension Credit Age can claim; it tops up your income to a minimum level. It is much more generous than the working age means-tested benefits. Even if you are only entitled to a small amount, the good news is that you automatically qualify for maximum help with your rent too!

  
  What is Pension Credit age?
  
  Pension Credit age is gradually increasing: in December 2018 it was 65 and 9 months, in March 2016 it was 63 and by September 2020 it will be 66. You must have reached Pension Credit age to be able to claim Pension Credit. If you are not sure when you reach Pension Credit age, you can use the gov.uk website to check when you will. See: https://www.gov.uk/calculate-state-pension
  
  

• What if my partner has reached Pension Credit age but I haven’t?

  If you are a couple and one of you has reached Pension Credit age, you can make a claim for Pension Credit. But this is something that will change in the future – from 15th May 2019 many ‘mixed age couples’ will have to claim Universal Credit instead, which is much less generous. So it is worth checking if you could be entitled, and claim Pension Credit now; if you do get Pension Credit you can stay on it for as long as you remain entitled to it and will not have to change to Universal Credit.