Apt Financial Management

State Pension Entitlement

The Basic State Pension is part of the Government-administered pension arrangement alongside the State Earnings Related Pension Scheme and the State Second Pension.

Following the recent emergency budget 22nd June 2010 the Government have indicated that the state pension age will rise to 66 for men as early as 2016

The state pension age for men is 65 and 60 for women born on or before 5 April 1950. For women born on or after 6 April 1950, the state pension age will increase from 60 to 65 between 2010 and 2020. It will increase for both men and women from age 65 to 68 between 2024 and 2046.

The Pension Service will normally send you the relevant forms and invite you to make a claim about four months before you reach the State Pension age.

The amount you receive is based on your record of National Insurance contributions paid or have been credited with throughout your working life.

PAUL TOON - Independent Financial Advisor

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Men and women both need 30 qualifying years years to get the full basic State Pension (since 6th April 2010).

If you haven't paid enough National Insurance Contributions because you've been looking after children or caring for someone long-term, you may be eligible for Home Responsibilities Protection, which can reduce the number of qualifying years you need to qualify for the Basic State Pension.

In 2009-2010, the full basic State Pension is £95.25 a week for a single person and £152.30 a week for a couple, but individual circumstances may affect the amount you get.

The State Earnings Related Pension was introduced to provide a pension in addition to the Basic Pension based on earnings with a maximum target of 25% of earnings.

In April 2002 SERPS ended and was replaced by the State Second Pension. The main reason for the change was to provide a larger pension to people on low earnings.

For a state pension forecast, visit  www.direct.gov.uk/en/Dl1/Directories/DG_180024

A Pension is a long term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.

Apt Financial Management, 4 The Willows, Hulland Ward, Ashbourne, Derbyshire DE6 3EW
Phone: 01335 370 515