If you're planning for retirement or are wondering how much you'll get in the future, you can check your state pension online. Here's how to find out how much you'll get from the government when you retire.
When thinking of retirement, more often than not we're focusing on what we'll do with our free time rather than how we'll fund it. But whether you're a couple of years or decades away from retirement, it can be very helpful to know what you'll get from your state pension, in order to plan out your future.
For many people, their state pension will provide a large part of their income in retirement, so it's vital to understand how much - or how little - it will be, whilst there is still time to do something about it.
The state pension gives you an allocated amount of money every week to live off, so long as you have ten years of National Insurance Contributions (NIC). Here's how to find out what you'll get when you retire, as well as how many years of NIC you have on record.
State Pension and your NIC record
Your new State Pension (NSP) is based on the number of NIC contributions you have made when you reach your State Pension retirement age. To qualify for any NSP you will need at least 10 qualifying years. To qualify for the maximum NSP you will need 35 years if you have no NIC record before 6 April 2016.
What if you had gaps when you did not work?
You may qualify for NIC credits for years you did not work if during those years:
· You claimed Child Benefit for a child under 12 years of age,
· If you received Jobseeker’s Allowance or Employment and Support Allowance; or
· You received Carer’s Allowance.
· In certain circumstances, you can also make voluntary NIC contributions to fill gaps in your contribution record.
What are the two different types of State Pension?
There are two different types of State Pension, and which one you'll get depends on when you were born. The Basic State Pension applies to men and women born before 1951 and 1953, whilst The New State Pension applies to people born after that time.
If you're looking for more information on your State Pension, including how and when it's paid, and the different circumstances that might impact it, you can read more on the government website below.
You can find information on The Basic State Pension here. This applies to;
· A man born before 6 April 1951
· A woman born before 6 April 1953
You can find information on The New State Pension here. This applies to;
· A man born on or after 6 April 1951
· A woman born on or after 6 April 1953
How to apply for a State Pension forecast
There is a simple online process you can use to apply for your forecast. You can access this on the government website, through the government gateway here. You'll need your government ID and password to apply for your forecast.
Once you've logged in, the process will then confirm how much money you'll receive when you retire, as a summary. You can also see the NIC contributions you have made and whether you need to make any more contributions before receiving the State Pension.
Other ways to apply
Applying online is the quickest way to get a forecast. If you’ll reach your State Pension age in more than 30 days you can also:
fill in the BR19 application form and send it by post
call the Future Pension Centre who will post the forecast to you
The government may extend the State Retirement Age or change the rates of NSP you might receive, which is why it is worth applying for a forecast on a regular basis.
We can help
Here at Chesterton House, we believe in planning ahead in order to achieve your goals. If you're already one of our Financial Planning clients we will have helped you to check up on your state pension entitlement as part of our service, but if not and you're thinking about retirement and want to find out how we can help you to live the life you want, you can get in touch with us here to take the first step.
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