State Pensions

Question 1

From which year will state pension age increase to age 66?

Answer 1

October 2020

Question 2

NI credits for basic state pension are provided in what circumstances?

Answer 2

1. Where a person is in receipt of unemployment, maternity or sickness benefits.
2. Unemployed men under 65 who have reached or over state pension of a women with same DOB
3. Parents & foster parents looking after children up to the age of 12 & other carers providing 20 hours of care per week
4. Age 18 & over in full time training for up to a year

Question 3

How can you defer the receipt of the basic state pension?

Answer 3

1. Defer for a higher income (pension increases by 0.2% for each week of deferral, equivalent to 10.4% pa)
2. Increase in pension can be replaced by a lump sum (equal to amount of pension that would have been received + interest)

Question 4

How many years NI records do you need to have to receive the full state pension after April 2016?

Answer 4

35 years

Question 5

From 6th April 2010, an individual will qualify for a full state pension after how many years NI contributions?

Answer 5

30 years

Question 6

How can an individual ensure they receive a full basic state pension if they haven’t quite reached the required years of NI contributions?

Answer 6

By paying the equivalent Class 3 NICs for the number of years missing.

They must be paid within 6 years of the end of the tax years missed.

Question 7

How is basic state pension taxed?

Answer 7

It is paid gross and any tax owed is collected via existing income by adjusting the tax code.