New pensions minister Emma Reynolds has vowed to ‘go further’ with industry review as she issues plea for older people to check what pension support they can get
This Pensions Awareness Week, I’m urging Mirror readers to check your financial health and plan for your pension. And the sooner you act, the better. Why? Because it’s never too early to prepare for a secure retirement.
More people are saving into a workplace pension than ever before, but we want to go further – which is why later this year we’ll be looking at how to help people and employers put more into their pension pots.
This will build on the Chancellor’s plans to boost the pensions of more than 15 million savers, improve pension scheme investment in the UK, and reward ordinary people with a better retirement.
This Pensions Awareness Week, make sure you’re taking up the free support to help you plan for later life. Our handy guide will help you get your retirement off to the best start:
What is the State Pension, and when do I get it?
The State Pension will give you financial support once you reach the current State Pension age of 66. You can check what age you’re able to get your State Pension online.
You won’t receive your State Pension automatically – you must claim it. You’ll receive a letter no later than two months before you reach State Pension Age telling you how to claim.
How much State Pension will I get?
To qualify for the State Pension, you’ll need to have made enough National Insurance contributions or received credits over your working life. And you’ll need at least 10 qualifying years to get any State Pension. The amount you receive depends on your National Insurance record which you can check along with your state pension forecast on the HMRC app.
Increase your State Pension
If you’ve got gaps in your National Insurance record, you may be able to fill them to increase your State Pension. You can do this online with our new tool on the HMRC app or contact HMRC directly. You can also check if you are eligible for National Insurance credits to fill future years or gaps. You might also want to defer your pension rather than claim it from State Pension age – which could increase your pension payments.
I have a private pension – how do I know how much is in it?
It’s important to be aware of all your private pension pots – especially if you’ve changed jobs. Keeping track of them will help you make decisions about consolidating them or adjusting the contributions.
If you think you have a lost pension pot you can get help at Pension Tracing Service.
Check what support you could get
If you’re over State Pension age on a low-income you could be entitled to Pension Credit. Pension Credit tops up weekly incomes which are below £218.15 for a single person or £332.95 for a couple.
It is worth on average £3,900 per year and we are encouraging all those who could be missing out to check their eligibility online with our Pension Credit calculator. It could passport you to other benefits, including the Winter Fuel Payment and help with housing or heating costs.
I need help understanding my retirement options
Your State Pension age is the earliest you can start receiving your State Pension, but you have more flexibility with private and workplace pensions. Most people can start accessing these from 55.
With Defined Contribution pensions, you can choose to take your money out as a lump sum, draw a regular income or buy an annuity for a guaranteed income for life. You can get free guidance on your retirement savings options from MoneyHelper.
Pension Wise also has information to help you decide what to do with your money if it’s in a Defined Contribution pension. And if you’re over 50, you can book an appointment to speak to someone.