Pension Advice Islington -We can help you build a better pension...

Pension Advice Islington -We can help you build a better pension...

A pension is a way to save money for later in your life.

You may be able to get:

  • a pension from the government
  • money from pension schemes you or your employer pay into

Check how much money you’ll need when you retire. You may need more money than just the State Pension when you retire.

Today the maximum basic State Pension you can get is £115.95 per week for a single person. You may also get Additional State Pension.

You’ll claim the new State Pension if you reach State Pension age on or after 6 April 2016.

Get a State Pension Statement to find out how much you may get.

How much a pension could be worth

Use the Money Advice Service’s pension calculator.

It shows you:

  • what you can expect to get from a pension, whatever age you start paying into one
  • what would happen to the value of your pension if you delay for 1, 2 or 5 years

Your pension options

You can pay into as many pension schemes as you want. It depends on how much money you can set aside.

You usually get tax relief up to certain limits on money you pay into a pension scheme.

Private pension schemes

Pension What it is
Workplace pensions Arranged by your employer. Usually both you and your employer pay into it.What you get depends on the type of scheme your employer offers.
Personal and stakeholder pensions A private pension that you pay into. Employers can also pay into them as aworkplace pension scheme. What you get depends on how much is paid in andhow well the investment does.

State Pension from the government

Current State Pension – if you reach State Pension age before 6 April 2016

Pension What it is
Basic State Pension The basic State Pension is a regular payment you can get from the government whenyou reach State Pension age. The amount you get depends on yourNational Insurance contributions and credits.Today the maximum you get is £115.95 per week.
Additional State Pension An extra amount on top of your State Pension. Not a fixed amount.How much you get depends on your earnings and whether you claim certain benefits.
Pension Credit For people on a low income. Tops up your weekly income to £151.20 (single people) or £230.85 (couples). You may get more if you’re a carer or severely disabled or if you have certain housing costs.

New State Pension scheme – if you reach State Pension age on or after 6 April 2016

Pension What it is
New State Pension The new State Pension is a regular payment you can get from the government if you reach State Pension age on or after 6 April 2016. The amount you get depends on your National Insurance contributions and credits. The full new State Pension will be no less than £148.40 per week.
Protected payment Any amount over the full new State Pension (around £148.40) that you may get from your National Insurance contributions or credits from before 6 April 2016 will be protected and paid on top of the new State Pension.
Pension Credit For people on a low income. Tops up your weekly income to £151.20 (single people) or £230.85 (couples). You may get more if you’re a carer or severely disabled or if you have certain housing costs.

Private pension schemes

Workplace pensions and personal or stakeholder pensions are a way of making sure you have money on top of your State Pension.

For most workplace and personal pensions, how much you get depends on:

  • the amount you’ve paid in
  • how well the pension fund’s investments have done
  • your age – and sometimes your health – when you start taking your pension pot

Workplace pensions

If your employer offers a workplace pension, they can make contributions on top of what you pay.

You may also be able to make extra payments to boost your pension pot.

Workplace pensions are protected against risks.

The government is bringing in changes to the law on workplace pensions. By 2018, your employer must automatically enrol you in a scheme if you’re over 22 and under State Pension age and earn more than £10,000 a year.

Personal and stakeholder pensions

You may want a personal or stakeholder pension:

  • to save extra money for later in life
  • to top up your workplace pension
  • if you’re self-employed and don’t have a workplace pension
  • if you’re not working but can afford to pay into a pension scheme

Some employers offer stakeholder or private pensions as workplace pensions.

Stakeholder pensions must meet standards set by the government.

Find out how to work out your retirement age on Pension Wise. You can also book an appointment to speak to someone.

Find a lost pension

The Pension Tracing Service might be able to trace lost pensions that you’ve paid into.

Nominate someone to get your pension when you die

Ask your pension provider if you can nominate someone to get money from your pension pot after you die.

Check your scheme’s rules about:

  • who you can nominate – some payments can only go to a dependant, eg your husband, wife, civil partner or child under 23
  • what the person can get, eg regular payments or lumps sums
  • whether anything can change what the person gets, eg when and how to start taking your pension pot.

Sometimes the pension provider can pay the money to someone else, eg if the person you nominated can’t be found or has died.

The person you nominate may have to pay tax if they get money from your pension pot after you die.

Pensions from the government

The State Pension is changing for people who reach State Pension age on or after 6 April 2016.

Your National insurance record

Your State Pension is based on your National Insurance record when you reach State Pension age.

If you reach State Pension age before 6 April 2016

You need 30 years’ worth of National Insurance contributions to get the full current basic State Pension. You may also qualify for some Additional State Pension.

If you reach State Pension age on or after 6 April 2016

The amount of new State Pension you’ll get depends on your National Insurance record. National Insurance contributions or credits made before 6 April 2016 count towards your new State Pension.

You’ll usually need at least 10 qualifying years of National Insurance contributions or credits to qualify for any State Pension.

Topping up your State Pension

You can get up to an extra £25 per week on top of your State Pension if you reach State Pension age by 6 April 2016.

You’ll be able to make a lump sum ‘Class 3A voluntary contribution’ between 12 October 2015 and 1 April 2017.

Deferring your pension

When you reach State Pension age you have the option to defer your State Pension (delay payments). By doing this you’ll get more money for every year you defer.

Pension Credit

Pension Credit is for older people on a low income to make sure they get a minimum weekly amount. You’ll have to apply and all your sources of income (eg savings) will be checked to make sure you qualify. Getting Pension Credit may mean you’re eligible for other benefits too.

You’re over 80

People over 80 with little or no State Pension can apply for a payment of £67.80 per week from the government through the Over 80 Pension. You can’t get the over 80 pension if you reach State Pension age on or after 6 April 2016.

Working past State Pension age

You might decide that you don’t want to stop working when you reach State Pension age.

If you do, you’ll no longer have to pay National Insurance.

The law protects you against discrimination if you’re over State Pension age and want to stay in your job or get a new one.

Staying in your job

There is no official retirement age and you usually have the right to work as long as you want to.

There are some circumstances when employers may have the right to set a compulsory retirement age that they choose.

Your employer can’t make you redundant because of your age.

Getting a new job

You don’t have to give your date of birth when applying for a new job. Employers can’t make you give this information if you don’t want to.

Employers also can’t set an age limit for a job, unless they can justify it (eg because of certain physical abilities) or it’s a limit set by law, eg for the fire service.

You may be considering flexible working options when you’re older.

Get financial advice

When planning your pension and retirement income you might need help with:

  • choosing a personal or stakeholder pension
  • planning your savings
  • choosing how you want to get your retirement income
  • delaying your State Pension payments (deferring)

You can get free guidance on your retirement savings options from:

Where to get Advice?

Make an appointment to see an adviser at GMP Independent Financial Advisers LLP on 0207 288 6400