Overwhelmed by all the pension jargon? Fear not, our pension glossary has you covered. All the important terms and acronyms explained right here.
What is the State Pension?
The state pension is a regular payment given by the government to most people once they reach state pension age. Not everyone gets the same amount of state pension because it depends on how much you paid in National Insurance over your working life. At present the full state pension is just under £165 a week.
State Pension video transcript:
Hi, I'm Michelle Gribbin, Chief Investment Officer at Profile Pensions. We know that pensions can be complicated to understand, so we've put together some impartial videos to help answer some of the most common customer questions.
So the State Pension is the amount you get from the government when you retire. Currently, the State Pension age is 65 for both men and women, but that's increasing to 67 from 2028. To be eligible for a full State Pension you need to make 35 years of National Insurance contributions. However, you will be eligible for some State Pension once you have made more than 10 years worth of payments.
Currently the amount you get from your State Pension is £164.35 per week. If you take time out of work to look after children, you could receive National Insurance credits. Which means you'd receive the same from your pension as if you'd been working. The most important thing in terms of State Pension is to check how much that is likely to give you in combination with your personal pension to make sure you have sufficient monies in retirement.
It's easy to see what you might get from your State Pension by logging on to the government website under check your pension. If you don't need your State Pension when you come to State retirement age, you can defer taking that pension, which means you'll get a higher amount when you do decide to take it.
Many people believe that the State Pension won't be there for the younger generations, but it's actually protected by something called the triple lock protection.This means that you will get each year an increase of either; 2.5%, consumer price inflation, or at national average earnings, whichever is the higher.
It's important to seek impartial pension advice regarding whether your State retirement pension together with your own pension provision, will provide you with sufficient income in retirement.