State Pension

When Nicholls Stevens draw up a financial plan for a client it is important to include the value of the State Pension. this can be obtained by going on line to obtain a forecast or by the completion of a form BR19

The State pension is not as straightforward as it may appear. We show below the basic facts

  • Basic State pension – From April 2016 the contribution period to qualify for a full state pension will be 35 years. You may be able to pay extra contributions to make up lost years.
  • Anyone reaching State Retirement Age after Aril 2016 will be entitled to a flat pension. However in some cases the full pension will be reduced. One of the circumstances in which it will be reduced is if you have a period of contracted-out service.
  • From April 2016 a married woman reaching State Retirement Age will no longer be able to rely upon her husband’s national insurance record to secure the State Pension

The State Pension Age for women has gradually increased from 60 to 65 .For those born after April 1955 State Retirement Age is now 65. Anyone born after April 1959 whether male or female will see their State Retirement Age increased so that by 2046 those born after April 1978 will have a State Retirement Age of 68.