For people who retire after April 2019, as well as those who already claim state pension the Government has confirmed they will receive a slight increase. There are also changes to the age you can claim your state pension which is worked out using your date of birth and gender. As part of ongoing changes, the age your pension can be claimed was equalised for men and women to 65 in November 2018. Eventually, the state pension age will reach 68.
What are the MAJOR changes to state pensions?
There is currently a transition for the state pension age to become 66 for both men and women.
Nick Onslow, a chartered financial planner at Russell Ulyatt told iNews: “It is becoming increasingly important to regularly obtain a state pension forecast to ensure that you fully understand when you will receive a state pension and more importantly how much.
Mr Onslow said there will be “incremental increases every three months through to October 2020 when everyone will receive a state pension from age 66.
“This means that many people will have to wait slightly longer than they might have expected to start receiving this money.”
More changes to the age are expected to take place between 2026 and 2028 – moving the state pension age to 67.
Changes to amounts you receive are also underway, and Mr Onslow explained: “This year, in April 2019, state pensions will rise by 2.6 per cent as the CPI inflation was 2.4 per cent when measured on 30 September 2018 and national average earnings (wage growth) were 2.6 per cent on 31 July 2018.”
Should you receive the basic state pension, your rate will increase from April 2019 by £3.25 a week – making the total £129.20 when it had been £125.95.
This will grant pensioners an extra £169 per year.
Should you receive the new state pension – which came into effect in April 2016 – the rate of this will increase by £4.25 a week giving you an extra £220 each year.
This means the weekly rate rises from £164.35 per week to £168.60 per week which equates to £8,767.20 per year.
Reaching state pension age does not mean you automatically stop working – you can work for as long as you and your employer decide.
The overall amount of state pension you receive depends on your National Insurance record.
Your record is build up by paying contributions as you work, but there is a minimum amount required to pay National Insurance.
This amount is over £162 per week for 2018/19 according to gov.uk.