State schemes

Question 1

How many years NICs credits are required for the full basic state pension and the single tier pension?

Answer 1

BSP - 30 years
STP - 35 years

Question 2

How many years NICs credits are required to get partial basic state pension and single tier pension?

Answer 2

BSP - 1 year
STP - 10 years

Question 3

How much are additional state pensions increased by every year?

Answer 3

CPI

Question 4

What type of worker was generally entitled to additional state pensions?

Answer 4

Contracted-in employed worker

Question 5

In what situation might an individual’s foundation amount be higher under the old rules but less than possible entitlement under the new rules?

Answer 5

Those who haven’t accrued enough NICs credits yet.

Question 6

In what situation might an individual’s foundation amount be higher under the old rules than the maximum under the new rules?

Answer 6

Long-time employee who never contracted out, so a protected amount is added to the STP.

Question 7

In what situation might an individual’s foundation amount be lowered?

Answer 7

An individual who spent lots of time contracted out.

Question 8

For those who retired pre-2016, how much extra state pension can be received by deferring?

Answer 8

1% per full 5 weeks

Question 9

For those who retired post-2016, how much extra state pension can be received by deferring?

Answer 9

1% per full 9 weeks

Question 10

If an individual chose to defer their state pension for a lump sum, how would it be taxed?

Answer 10

At the individual’s lowest marginal rate

Question 11

How is excess capital treated when it comes to means testing guarantee credit?

Answer 11

Every £500 over £10,000 is considered to be £1 in income.

Question 12

How are bereavement support payment and pension credits taxed?

Answer 12

They are both tax-free