The state pension: then and now.

Jonathan Watts-Lay comments in How to Retire in Style magazine on the topic of ‘winners and losers under the new state pension.’

The new single tier State Pension has come into effect for those reaching pension age on or after the 6th April 2016. The full new State Pension is £155.65 per week but is dependent on individuals having 35 qualifying years of National Insurance (NI) contribution. In reality, not everyone is eligible for the maximum amount of the new State Pension; there will be a deduction for those who were contracted out of the Additional State Pension and you might get less.

Watts-Lay comments; “The problem is not so much with the details of the new pension, rather the way it has been communicated. Individuals talk about a flat-rate pension, but it isn’t and this is where there is the potential for people to feel that they have been misled.”

It is important for individuals to check their State Pension record and National Insurance contribution history early; if they have any gaps then they still may be able to make up the difference.

Those who are approaching retirement can make an enquiry to find out what they are going to receive by requesting a State Pension statement using a form called a BR19, which is available online or by calling the government helpline on 0345 3000 168.

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