Chapter 9 - State Schemes & An Indicidual’s Pension Planning Flashcards
How much is a single persons New State Pension (NSP) pw?
£185.15 and has triple lock
What are the three additional state pension schemes?
Guaranteed retirement benefit
State earnings related pension scheme (SERPS)
State second pension (S2P)
To obtain full state pension an individual needs how many qualifying years of NIC’s?
35 qualifying years
Voluntary NIC’s are also known as…
Class 3 NIC’s
Individuals need to defer the state pension for at least how long to receive any increase in income?
At least 9 weeks, increase is 1% pw or 5.8% for every full year.
However, if someone is in receipt of the state pension BEFORE 2016 then it is reduced to at least 5 weeks
Can a spouse inherit a deferred state pension?
No, though the estate could claim 3 months arrears of their state pension
Someone who lives overseas could claim state pension if they spend a minimum of how long in the UK each year?
6 months pa
The higher rate of Bereavement Support Payment is only payable to people who receive which benefit?
Child benefit, and current rate is £3,500 up front and £350 pm for 18 months
Which State benefit is taken into account when assessing someone’s eligibility for Pension Credit?
Carers allowance
Who is entitled to the higher rate of bereavement support payment?
The higher rate is payable to claimants who are pregnant at the time of their spouse/civil partner’s death or who are entitled to receive child benefit.
What is the formula for calculating someone’s pension credit entitlement?
(Savings pot - 10,000) / 500
Only on any savings over £10,000
How does the Additional State Pension increase in payment each year?
In line with CPI
Class 2 and 4 NIC’s are paid by which type of individual?
Self employed people
What were type 3A NIC contributions?
They were voluntary contributions people could make to increase their additional state pensions, stopped in 2017
