NEWS
We’re
living longer lives
The good news is that we’re living longer lives. Life expectancy is
increasing and someone reaching State Pension age today could have around
20 years in retirement. This means extra years to enjoy – but people
do need to think ahead about how they will fund them. To help with this,
over the next few years the Government is introducing important changes
to both state and private pensions.
State Pension changes will come into effect from 6 April 2010. The State
Pension will become fairer and more widely available, so more people will
qualify for it when they retire. But there are simple steps that some people,
including those recently retired, approaching retirement and carers, may
need to take now to make sure they don’t miss out.
You can find out more about the changes to pensions at:
www.dwp.gov.uk/pensionsreform
The State Pension is changing. Don’t
miss out on money for your future
The State Pension is changing from 6 April 2010 so that more people qualify
for it. But some people need to take action now to make sure they don’t
miss out on money for their future.
To get the full basic State Pension you need to build up a certain number of years of contributions, called ‘qualifying years.’ Currently this is usually 39 years for women and 44 years for men. For men and women reaching State Pension age on or after 6 April 2010, this is reducing to 30 years, to make it easier for people to build up a full basic State Pension.
If you’re over 55 and have ever taken time out of the workforce, you could do something now to boost your income in later life.
Think about any time you’ve spent out of the workplace. This might have been a career break, time taken out to raise children, or a period when you’ve been a carer for a partner, relative or friend.
It’s important you do this because your State Pension depends on your National Insurance record. When you are working you pay National Insurance contributions from your wages and these go towards your State Pension, among other things. However you can also be credited with contributions if, for example, you have been caring for someone or claiming certain benefits, or you may have paid some voluntary contributions.
If
you’ve ever taken time out of the workplace, there’s a chance
you may not have built up enough qualifying years to get the full basic
State Pension.
Visit www.direct.gov.uk/pensions
now to find out how the changes affect you. You’ll find simple steps
to improving your pension, such as the State Pension Profiler tool. Alternatively,
you can call 0800 678 1132.
