The state pension
The state pension is a regular payment you receive from the Government when you reach state pension age.
But, we’re all living longer - and that’s putting enormous pressure on the state pension. There just aren’t enough working people paying taxes to support the growing numbers of people in retirement.
The state pension rules have already changed because of this, pushing the retirement age up. For someone retiring today, state pension age is 66 – and by 2028, everyone will have to be 67 before they get it. Use the tool on gov.uk to find your state pension age.
How much is the state pension?
The flat rate state pension for the tax year 2021/2022 is £179.60 a week for a single person. However, the amount you will actually receive depends on your national insurance record. Some people could get more, many could get less, but you’d be surprised at how many people are not saving enough.
How far does it go?
Just over £179 a week is a really tight budget. After all your weekly expenses like your energy and phone bills, council tax and the cost of running a car, you may struggle to afford a very basic basket of shopping, let alone small luxuries, like going out for dinner.
If you want a higher standard of living than this when you retire, you should have your own retirement savings in place too.