When you stop working you will no longer receive a salary and you normally won't receive state benefits until you are at least 65. Have you thought about how you will replace your salary? You may have savings or property but will that provide you with the income you want in retirement?
Will you be able to comfortably survive on the maximum basic state pension of £97.65 a week? This payment is if you're single and for the tax year 2010/2011. You should note that not everyone may be entitled to the full amount. You may also be entitled to an earnings related state pension. In addition, you may be entitled to Pension Credit. This depends on the level of your income in retirement and the amount of any savings you have.
Please visit the State Pension section on the Directgov website if you need further information about your state pension entitlement.
What are the changes to State Pension age?
Currently, the State Pension age is 65 for men born before 6 April 1959. For women born on or before 5 April 1950, State Pension age is 60. The State Pension age for women born on or after 6 April 1950 will increase gradually to 65 between 2010 and 2020. From 6 April 2020 the State Pension age will be 65 for both men and women.
State Pension age changes from 2024
Between 2024 and 2046 the State Pension age will increase for both men and women. This increase will be gradual, happening over two years every decade. The changes will mean that:
- State Pension age for men and women will increase from 65 to 66 between April 2024 and April 2026
- State Pension age for men and women will increase from 66 to 67 between April 2034 and April 2036
- State Pension age for men and women will increase from 67 to 68 between April 2044 and April 2046
The age you can claim your State Pension will be determined by when you were born. You can find out exactly when you will be able to claim your State Pension by using the State Pension calculator on the Directgov website.
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Tax rules and legislation are likely to change. The information given is based on Standard Life's understanding of current law and HM Revenue & Customs practice. Tax relief may alter and its value depends on your financial circumstances.
