What about State pensions?

What about State pensions?

State Pension Age (SPA) is now between age 60 and age 68 depending on when a person was born and their gender.

The State Pension is based on National Insurance Contributions (NICs) paid and the number of years over which these have been paid. A member can find out how much their state pension will be by contacting:

For those reaching SPA on or after 6 April 2016, a new State Pension comes into force, known as the single tier pension (STP).

HOW TO FIND INFORMATION

  • The website has an on-line calculator that those under age 55 can use.
  • For those over age 55, they can obtain a statement by completing a BR19 application form.
  • If a person is within 30 days of SPA, they will need to call the Pension Service on 0800 731 7898 or Textphone: 0800 71 7339

HOW TO MAKE A CLAIM

  • A person can claim online to get the State Pension paid directly into their bank when they are within 4 months of SPA.
  • A person can defer taking their pension if they intend to continue working.

THE AMOUNT OF PENSION

  • The full amount of the basic state pension is currently £122.30 per week from April 2017.
  • It is paid every 4 weeks and increases each April.
  • The new STP for new pensioners from April 2017 is £159.55 per week.

STATE PENSION & RETIRING ABROAD

If a member intends to retire abroad they can still claim the State Pension, however, there are a few things they need to bear in mind when considering this.

PENSION PAYMENTS

Payments can be made to a bank in the country in which they live; or

  • To a bank or building society in the UK; or
  • If a member intends to divide their time between countries they must decide where it will be paid. A member can’t choose to have their State Pension paid in one country for part of the year, and a different country for the rest of the year.

AMOUNT & TAX

The amount will be paid in local currency so will be subject to fluctuations in exchange rates.

  • UK tax may need to be paid – this depends on the member’s taxable income and whether or not they are classed as a UK or non-UK resident. The HMRC Residency helpline will assist in determining residency.

INCREASES

The pension will only increase if the person lives in the UK for 6 months or more each year; or

  • Lives in the European Economic Area (EEA); or
  • Lives in Gibraltar; or
  • Lives in Switzerland; or
  • Lives in a country that has a social security arrangement with the UK (except Canada or New Zealand).