How much will I get at 66?

Britons have been returning to their state pension since the age of 66 – but many are unsure how much they receive.

It all depends on how long you work and how much national insurance you have paid during your lifetime.

The state pension aims to provide older Britons with a minimum retirement income


The state pension aims to provide older Britons with a minimum retirement incomeCredit: Getty – Contributor

Have a plan for Minimum age to increase for a period of 5 years after the last change of government how the state pension system works back in April 2016.

We explain everything you need to know about state pensions.

How much is the state pension?

The state pension is a weekly payment from the government to men and women over the age of 66.

The age to start receiving will increase to 67 in 2028 and 68 between 2037 and 2039.

It is intended to provide anyone with a retirement income to support them as they age.

You can spend the money as you like, but it is considered income, so you may have to pay tax if all your income is above the annual personal tax allowance, which is currently £12,570.

How much is the state pension?

The full state weekly pension for this tax year is £179.60.

In April this will increase to £185.15.

That means you could get £9,339 from the government to boost your income for the year – or £9,627.80 from April.

However, the actual amount you receive will depend on your national insurance record.

New state pension v basic state pension

There are two types of state pension.

The new state pension is only paid to people who have reached state pension age as of April 2016.

This applies to men born on or after April 6, 1951, and women born on or after April 6, 1953.

Men born before 6 April 1951 and women born before 6 April 1953 are only eligible for the basic state pension, currently the lower £137.60 per week.

To receive the full state basic pension, you need a total of 30 years of qualifying contributions or national insurance credits.

How do you qualify for a state pension?

The full state pension is paid only to those with a minimum 35 years national insurance contribution.

This is one of the taxes you pay while working and accumulating state pension entitlements.

There could be a gap if you’re unemployed, living abroad, or spending time looking after children or loved ones, meaning you could get a lower payout.

But in some cases, you can apply for credits to fund your retirement.

You need at least 10 years of qualifying national insurance contributions to receive any state pension payments.

This does not have to be from 10 consecutive years.

You can increase your eligibility as long as you’ve made the equivalent of a decade’s worth of national insurance contributions during your working life.

You can make a voluntary national insurance contribution to add to your record, usually from the previous six years.

You can use a government tool to see how many years you have contributed and how much state pension you can get.

But savers are facing a four years of waiting for the much-anticipated new technology that will allow them to see all of their pension funds in one place online.

How is the state pension calculated?

Your national insurance record is only one factor in how much state pension you will receive.

It is also based on a government calculation called third key determine how much the state pension increases each year.

Under the triple lock system, pension payments increased at the start of the tax year in April due to a higher average wage, consumer price index or 2.5% in the previous September.

You can also fund your payments with retirement credit.

This gives extra money to low-income retirees or if you are a carer, severely disabled or responsible for children or teenagers.

Pension Credit brings your weekly income to £177.10 if you are single or £270.30 if you have a partner.

But state pension payments are set up £290 in April in the face of rising inflation.

How else can I save for retirement?

State pensions are not your only form of income in retirement and most probably won’t last to maintain your standard of living.

Research by which consumer watchdog? claim Britons will need a £123,000 pension just for the basics when they retire – and can go up to £305,000 to be able to take a holiday.

There are a number of ways you can save for your retirement beyond relying on your state pension.

Start your own pension

State pension is only one type of retirement income.

A private pension is invested in the stock market to build a retirement fund as you get older.

Everyone over the age of 22 should be enrolled in a workplace pension scheme, or you can set up your own pension scheme if you are self-employed.

What are the different types of pensions?

WE round up the main types of pensions and how they differ:

  • Personal pension or self-invested individual pension (Sipp) – This is probably the most flexible type of pension as you can choose your own provider and how much you invest.
  • Pensions at work – The government has made it so that employers are required to automatically apply for a pension at your workplace, unless you choose to opt out.
    This so-called deterministic contribution (DC) pension is usually chosen by your employer and you won’t be able to change it. The minimum contribution was increased to 8% in April 2019, with workers now paying 5% (1% tax relief) and employers contributing 3%.
  • Final salary pension – This is also a workplace pension but here what you get in retirement is decided based on your salary and you will be paid a certain amount each year in retirement. It is often referred to as a gilded pension or a defined allowance (DB). But they are often not offered by employers anymore.
  • New state pension – This is the amount the state pays to people who reach state pension age after 6 April 2016. The maximum payout is £179.60 a week and you will need 35 insurance contributions. country to receive this payment. You also need to have at least ten years of national insurance contributions to qualify.
  • Basic state pension – If you reach state pension age on or before April 2016, you will receive your state basic pension. The full amount is £137.65 per week and you’ll need 30 years of national insurance contributions to get it. If you have a basic state pension, you can also get an extra from what is known as an additional state pension or second state pension. Those who have contributed to the national insurance under both the basic pension and the new state pension will receive a combination of both schemes.

Employers must contribute a minimum of 3% to the pension scheme and employers must contribute 5% from their salary.

The more you can contribute to increase your pension, and the earlier you start, the more you can benefit from stock market growth and cover any losses.

Use your savings

You can increase your super with other forms of savings.

There is a £20,000 allowance that you can save tax free in Cash or Stocks and Shares each year.

Britons between the ages of 18 and 39 can also open Isa Lifetime and save up to £4,000 a year tax free.

This money can be used to buy your first home or you can use it after age 60 for retirement.

The government will add a 25% bonus to your savings up to a maximum of £1,000 per year.

The bonus is only paid until you turn 50 so the maximum you can get is £32,000.

Martin Lewis explains how unpaid carers can claim £1,000 for their pension

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