We are no longer accepting comments on this article. If you choose to defer your pension you will be entitled to a higher weekly amount later on, or a one-off lump sum payment. State pension is normally paid into a bank, building society, or Post Office card account. newspaper archive. The state pension is a paid weekly by the UK government to all citizens of state pension age, regardless of where they live. Moving to a country in the European Economic Area, or one with a social security agreement with the UK, will mean your pension goes up each year. So you won’t get this as part of your state pension, but should get it instead from your workplace or personal pension scheme for the periods you were contracted out. To get a statement, call 0345 3000 168, go to gov.uk/state-pension-statement, or write to The Pension Service 9, Mail Handling Site A, Wolverhampton, WV98 1LU. Nothing in his replies constitutes regulated financial advice. © 2020 Guardian News & Media Limited or its affiliated companies. The Department for Work and Pensions (DWP) applies a formula, taking into account the number of full National Insurance years you have, contracted-out periods and the additional state pension you’ve accrued, to work out have much state pension you’re due. : "http://www. Please include a daytime contact number with your message - this will be kept confidential and not used for marketing purposes. You’ll be able to claim the new State Pension if you’re: Most will need at least 10 qualifying years on their NI record to get any State Pension. So, in principle, each member of a married couple could earn a full state pension. These are subsidised by the government which means that although your wife would have to pay a one-off lump sum of a little over £700 for one year’s worth of contributions, she would get an additional £230 per year on her pension for her whole retirement. The full new State Pension is £175.20 per week. This is clearly quite a broad estimate and the exact amount your scheme will pay you as a result of contracting-out as it will depend on the actual rules of your private scheme, and possibly any investment choices you may make. This article also explains how the Age Pension works, and includes the latest Age Pension rates for residents, non-residents, and the transitional Age Pension. We have had four children and my wife was always a full-time mum (my wife and I have been married 33 years in July 2016). State pension age will rise to 66 from 2020 and to 67 from 2026, and further rises are in the pipeline. It also depends on whether you "contracted out" at any point – this was an option that allowed you to pay NI contributions into a private pension scheme rather than using them to build up state pension entitlement. Need help preparing for retirement? Available for everyone, funded by readers. Express. Not from Halifax! Your new state pension will be based on your National Insurance record when you reach state pension age. You have to actively claim the state pension – it will not be automatically paid to you. However, how much you receive depends on a … For example, say you have 25 qualifying years on your National Insurance record. Read our expert guide to find out how much state pension you'll get. function gtag(){dataLayer.push(arguments);} The gender gap is also narrowing. This is Money is part of the Daily Mail, Mail on Sunday & Metro media group, Get a discount code to save on your internet security, Listen to podcasts and books for less with these offers, Get the ultimate broadband and entertainment bundle, Get great deals on existing and new plans, Have a clean house and save money with these offers, Tax gurus hand Chancellor a blueprint to raid profits on Britain's investments and buy-to-lets in sweeping review of capital gains tax, Desperate borrowers face mounting credit card bills: Surge in people turning to sub-prime plastic charging interest of 35% and beyond. The value of the basic state pension rises every April. Certain groups are better off under the new system, whereas some will lose out from the changes. The forecast gives you an estimate of what you can expect in terms of your state pension based on your National Insurance contributions. women, carers and the low paid who haven’t built up additional state pension, self-employed people who didn’t qualify for state second pension, people who were contracted out and can access their private pensions at age 55, workers contracted out who have time to build up years of full NI contributions.New state pension losers, people with less than 10 years of NI qualifying years, people with more than 35 years’ worth of full NI contributions, high earners who won’t be able to build up more additional state pension (ASP), younger employees who will no longer be able to build up ASP, spouses, civil partners, widows and widowers who will no longer be able to claim or inherit a state pension based on a partner’s NI contributions, those already drawing the state pension won’t be affected.