How To Increase Your State Pension – “Take Control” of Retirement Planning | Personal Finances | Finance

0

Fortunately, there are services available that can help people learn more about their retirement prospects and many ways to potentially increase their state pension. From family allowances to pension credit, there are many options and no reason why people are getting less than they deserve.

Buy NI Credits

“If you can save money, you can fill the gaps in your NI record by purchasing NI Class 3 Voluntary Contributions. Buying a full extra year for £ 800 will increase your pension by £ 4.80 per week, which works out to around £ 250 per year and you can usually buy for up to six years.

Claiming a pension credit

“If you are over the legal retirement age and have a low income, you need to check if you are eligible for pension credit. The pension credit supplements your weekly income to £ 177.10 if you are single and to £ 270.30 of joint income if you have a partner.

“It also gives the right to other advantages such as housing tax assistance and a free TV license for over 75s. Although it has the capacity to actually increase the incomes of the poorest retirees, uptake of this benefit remains stubbornly low, with only around 60 percent of claimants claiming it.

New research from Hargreaves Lansdown has found that nearly one in five Britons don’t know when they will receive their state pension, and more than a third don’t know how much state pension they will receive. Ms Morrissey had her say on the findings and encouraged people to check the amount of pension they are entitled to.

She said: “We don’t know when we’ll get our state pension, or how much we’ll get – which makes retirement planning almost impossible.

“The state’s retirement age has increased in recent years, which has either overtaken people or left them completely confused, so that a large number of people have no idea when to could receive their pension.

“Unsurprisingly, more young people are in the dark, partly because it’s such a distant prospect, and partly because some of them are likely to expect more increases in the retirement age. ‘here until they get there.

More worryingly, however, more than a quarter of people aged 45 to 54 were also confused and this is concerning, as their retirement plans should be much more detailed at this point.

“Meanwhile, a third of people don’t know how much they are likely to receive – that includes 35% of 55-64 year olds. The state pension is the backbone of many people’s retirement planning, and making plans based on incorrect assumptions can derail someone’s plans and undermine their financial resilience. “

Ms Morrissey warned Britons that if they did not accumulate enough years of national insurance contributions throughout their working life, they could receive less than the full pension.

She explained: “Over time, more and more people will receive more state pensions, as more and more people with longer work histories reach retirement age.

“However, not everyone will be able to accumulate the 35 years of NI necessary for the state full pension, and any period of subcontracting will also have an impact on the amount received, so people will always go through. the net. A recent analysis by HL of government figures showed that there are still over two million retirees receiving less than £ 100 a week.

“If you don’t know how much state pension you need to collect, it is essential that you check it online. This is your opportunity to find out if there are any gaps and take charge of your retirement planning.


Source link

Share.

Leave A Reply