There is a shocking lack of public awareness regarding state pensions. Retirement firm Aegon conducted a survey of 4,000 working age people in the UK and nearly 70% of them were unable to correctly identify what they will be paid for the pension, or maximum weekly payments as part of the full state pension.
Pensions Director Steven Cameron, at the retirement firm Aegon stated “With just a number of days before the new flat rate state pension comes into force, it’s alarming that so many people don’t know how much they’re due to receive”.
From April 2016 the new state pension will rise to £155.65 per week as part of Chancellor George Osborne’s news ‘flat rate’ approach. You need to have worked for at least 35 years making full National insurance contributions to be able to qualify for a full state pension in the UK, and at least 10 years to qualify for at least some state pension.
However not everyone that has worked for 35 years will qualify for the full weekly pension amount of £155.65. In the past employees were presented with an option to take home more in their pay packages by opting out (‘contracting-out’) of pension top-up schemes which came in two flavours (serps, S2P). Anyone that previously opted out of these schemes, will not have been paying the full amount and won’t receive the full amount as a result.
Start teaching yourself about UK pensions now – so you can ensure you’ll be in the best position when it’s time for you to enjoy your golden years.
Remember you can receive your pension, salary or benefits directly into your Monese current account, and you can easily stay on top of your spending using our mobile banking app which tracks and visualises all of your transactions – and also provides you with real time account activity notifications pushed straight to your mobile phone.
Photo credit: LendingMemo