The current State Pension is made up of a basic flat-rate pension and an additional State Pension.
In May 2014, the Government passed legislation that set up a new State Pension system, referred to as the Single Tier State Pension. The new system comes into effect on 6 April 2016.
The new state Pension will be a regular payment from the government that you can claim if you reach State Pension age on or after 6th April 2016.
You will be able to get the new State Pension is you’re eligible and:
- a man born on or after 6th April 1951
- Woman born on or after 6th April 1953
The new State Pension system will:
- provide a higher flat-rate pension; and
- Only affect those who reach state pension age on or after 6 April 2016.
If you reach State Pension age before 6 April 2016, you will not be affected; you will continue to receive your State Pension under the current rules.
The full new State Pension will be no less than £151.25 per week. The actual amount will be set in Autumn 2015. The amount you get can be higher or lower depending on your National Insurance record. It will only be higher if you have over a certain amount of Additional State Pension.
You don’t have to stop working when you reach State Pension age but you will no longer have to pay National Insurance, you can also request flexible working arrangements.
If you would like to discuss this or any other pension related query with our advisors, then please call us on
0151 924 0775, or get in touch below