Make the most of the Basic State Pension

How-to Guide Tips 1 tip on this task  | 

1. The Basic State Pension is the first layer of income you get from the government when you retire. On current rates (for the 2010/11 tax year) it provides a maximum weekly income of £97.65. You'll only qualify for the maximum amount if you have built up enough qualifying years and paid enough National Insurance (NI) contributions before State Pension age.

2. To find out how much of the basic state pension you’re entitled to, get a State Pension forecast. If you’re more than four months away from retirement you can get a forecast online from The Pension Service.

3. You might find you don’t qualify for the full Basic State Pension if you don’t have enough qualifying years and there are gaps in your NI record. For each qualifying year that you have earned, you will get some basic State Pension. But don’t panic because you can make up the shortfall by buying missing years with voluntary NI contributions. Find out how to do that here.

4. You'll also need to think about when to take your basic state pension. You won't be entitled to start receiving any income until you reach the State Pension age.  You can work this out here.  However, by delaying when you take the state pension, you could receive a significantly higher income.

To find out more, take a look at Boost your pension by 52%!

5. On top of the Basic State Pension you may qualify for a host of other benefits when you retire depending on how much income you have. Extra cash for pensioners is available to cover the cost of heating, travel, health, TV licensing, as well as Pension Credit which can be a welcome boost to your State pension for low income pensioners.

Enjoyed this? Show it some love

Twitter
General

Tips on this task (1)

  • Glasgow43
    Love rating 0
    Glasgow43 said

    Here's a tip - don't EVER rely on the government Pension forecast! Despite having been paid a certain amount that include SERPS, over several years that was never previously questioned, some bright spark at DWP claims to have discovered an "anomaly" that means my pension would be about 15% LOWER. No indication as to WHAT or WHY, no explanation or advice on what I will get on the NEXT payment day (my bank manager is VERY interested as he's looking to take his regular money from my account under the agreements I made when the Government "backed" my future income. Now, that income looks uncertain (certainly unspecified) So inflation racing, fixed income pensioners ESPECIALLY hit (old folk - please don't ever, in future, think you have an "agreement" with the government. OAPs are an easy target.) My income will be at least 20% DOWN on last year. (Thinks. I wonder if the Poll Tax people, Tesco and the Utilities will accept 80% of my future bills?)

    Report on 13 April 2011  |  Love thisLove  0 love

Post a tip

Sign in or register to post a tip.

Most popular tipsters

W3C  Thank you for using The Four Horsemen of the Apocalypse