Last month, we looked at the reasons people might defer their State Pension. This month, we thought we’d look at a more fundamental question:
How much could you get, and when?
Research from B&CE shows 52% of non-retired adults are unsure of the age at which they will be able to start receiving their State Pension. Further to this, 55% don’t know how much the current weekly State Pension income is.
This lack of knowledge is even worse among younger people as, 18-24-year-olds:
- 93% do not know how much the State Pension is
- 83% don’t know their State Pension Age
Why do you need to know?
With so much riding on your income in retirement, it is vital that you start planning as early as possible. Whether retirement is 10 years away or 50, it’s never too early to make sure that you’re on the right track to an enjoyable retirement.
Start with finding out the what and the when, then build on that knowledge with a financial adviser to get the most out of life when you stop working.
With the average UK adult changing job eight times throughout their career (source: LV), workplace pensions may end up forgotten and a portion of your pension could be lost. Fortunately, Gov.uk has a pension finding service which allows you to find the contact details for providers you may have a pension with. Find it here.
The what?
Use the Gov.uk website to find out how much State Pension you are entitled to. To access the page, click here. You will need to have your Government Gateway details ready, if you have used any online government services before. However, if you haven’t you can make a new account.
You can also use this platform to find out how many years’ National Insurance you have paid. You need to have contributed for 35 years to get the full state pension. This is also where you will make voluntary payments to increase the number of years and boost your State Pension payments when you retire.
The when?
You can find out your exact State Pension age here. The closer you currently are to retirement, the earlier your State Pension Age will be. However, for youngers people, the State Pension age is due to rise, so make sure to check for any changes before setting a plan in motion.
Tell your friends and family
The best thing to do with knowledge is to share it. Let your friends, family and colleagues know that the State Pension age might no be when they think it is, and help even more people gain confidence in their retirement plan.
Talk to an adviser
An independent adviser will be your best friend when planning for retirement. We know how difficult it can be to think about the future, especially if the end of working life seems to be far away. But we also have the experience, qualifications and knowledge to ensure that your plan works with your lifestyle and financial needs and help you to achieve the retirement you want.
Ready to talk about your retirement planning? Get in touch with Ben.