The new State Pension

Prior to April 2016, men born before 6 April 1951 and women born before 6 April 1953, qualified for a basic State Pension and an Additional State Pension.

If you were born after these dates you will qualify for the New State Pension and will no longer be eligible for the Additional State Pension (unless you inherit the Additional State Pension of your partner).

The remainder of this post set out details of the New State Pension (NSP). The basics:

• The earliest you can claim the NSP is when you reach the relevant State Pension Age.
• You will need to have paid at least 10 years National Insurance Contributions (NICs) to be eligible for any NSP payment.
• You will need 35 years of NICs to qualify for the full NSP.
• The NSP is currently £168.40 per week.

Check your pension record

You can apply online for a Pensions Statement that sets out the number of years contributions you have already made.

Claiming your pension

You have to claim your NSP, there is no automatic entitlement. You can claim online, by phone, by downloading a pension claim form or following a separate claims procedure if you live abroad.

Pension planning

Clearly, if a State Pension is your only income after you reach the State Retirement Age, this will be unlikely to cover the basics and you will need additional income or savings to make up the difference.

And the earlier you start this planning process, the more chance you have of achieving a reasonable income after retirement.

Action plan

We recommend that all readers consider the following action plan:

1. Apply for a State Pension Statement that clearly sets out the number of years NIC contributions you have made and those you still need to make to qualify for the NSP.
2. Organise a formal planning meeting with your pension’s advisor to ensure that you are keeping pace with your need to supplement the NSP with a private pension after retirement.

Time flies. Don’t leave this important aspect of your personal financial wellbeing until it is too late to create a reasonable pension fund, from State or private sources.