The Government though have confirmed they are committed to give us at least 10 years notice of any intention to increase the state pension age .
5 . Can I receive more than £ 221.20 per week ?
There are 2 ways you can receive more , if you have over a certain amount of Additional State Pension , or If you delay taking the new state pension after your state pension age . The additional amount is 1 % extra for every 9 weeks delay which is equivalent to roughly 5.8 % per annum .
6 . Should I delay taking the new state pension ?
One consideration is if you delay taking the state pension , you ’ re missing income for that period . So , although you will get an extra 5.8 % per annum , when will you catch up with the missed income ? You need to take into consideration the rate of tax you ’ re paying . So , for example if you ’ re a higher rate taxpayer , then your state pension will attract higher rate tax . But of course , what you might try and achieve is if you ’ re a higher rate taxpayer initially , perhaps because you ’ re still working , then delay your state pension until you ’ re a basic rate taxpayer so all your income will be taxed at basic rate .
If you ’ re a higher rate taxpayer at state pension age , and you delay taking your state pension for a year when you ’ ll be a basic rate taxpayer , it will take to age 77 to make up for the missed income . However , if you were either a basic or higher rate taxpayer both at state pension and after the delay of one year , then the breakeven age would be 80 .
7 . Should I top up my state pension ?
If you do go online and get your state pension forecast , find you do have missing years , you ’ re
not going to get a full new state pension and you are looking for guaranteed income in retirement , topping up via class 3 NI contributions is about the most cost-effective way to go about it . Admittedly you are limited to how much you can get but it is cost effective . Just for reference , buying an extra year of state pension via class 3 NI contributions costs £ 907.40 which will get you 1 / 35 of NSP , approx . £ 329.77 per annum increasing by the triple lock . Therefore , you only need to live 3 years to break even . If you are covered by the new State Pension system you can top up your National Insurance record for years from 2006 / 07 onwards . You need to do this by 5 April 2025 . After this date , missing years have to be topped up within six years .
There is no reason in principle why you cannot top up your pension after pension age . This is provided that you come under the ' new ' state pension system and reached pension age on or after 6th April 2016 .
8 . What happens to the State Pension on death - will any pass to my spouse ?
Under the new state pension rules , each person builds up their own entitlement in their own rights , therefore on death no new state pension will be passed on to the surviving spouse .
However , the surviving spouse may be entitled to inherit part of their deceased partner ’ s Additional State Pension if their marriage or civil partnership was before 6 April 2016 and one of the following applies : their partner reached State Pension age before 6 April 2016 ; or they died before 6 April 2016 but would have reached State Pension age on or after that date .
VISIT THE WEBSITE TO FIND OUT MORE .
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