Basic State Pension - May 2009
State Pension is paid to people who claim it having reached state pension age. It is based on National Insurance (NI) contributions and it is made up of different elements.
State Pension age
The State Pension age is currently 65 for men and 60 for women. The State Pension age for women will increase gradually from 2010, so that by 2020 it will be 65.
The increase in the State Pension age will not affect women born on or before 5 April 1950. Women born between 6 April 1950 and 5 April 1955 (inclusive) will have a State Pension age between 60 and 65. Women born on or after 6 April 1955 and before 6 April 1959 will have a State Pension age of 65.
The State Pension age for both men and women is to increase from 65 to 68 between 2024 and 2046.If you are a married woman and cannot get a full basic State Pension because you do not have enough qualifying years based on your own National Insurance (NI) contributions, you may be able to get a State Pension based on your husband's NI contributions. You can only do this if he is already getting a basic State Pension and you are aged 60 or over.
If you carry on working after claiming your State Pension, your earnings will not affect how much State Pension you get. But if you get an increase for a dependant, their earnings may affect how much increase you get for them.
If you put off claiming your State Pension for at least five weeks when you reach State Pension age, you can earn extra state Pension. The weekly amount of your State Pension will be higher, but you will not get any State Pension for the weeks you put off claiming.
From April 2005, if you put off claiming your extra State Pension for at least 12 months, you may be able to choose between extra weekly pension and a one-off taxable lump-sum payment when you do finally claim.
If you would like to consider your upcoming pension position and would like us to obtain a pension forecast for you, please let us know.
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