Are you entitled to a British State Pension?
How would you like to receive $14,522* each year?
- Have you ever worked in the UK and paid National Insurance Contributions?
- Did you stay at home to take care of the children?
If so you may be entitled to a British State Pension.
The amount you receive at retirement is determined by the number of qualifying years.
Did you know that you can top up the number of qualifying years to increase your annual pension?
The British State Pension is not means nor asset tested so you could be eligible for a full British Pension.
British State Pension Changes
HMRC introduced changes to the State Pension that will affect individuals reaching retirement age on or after 6 April 2016.
The main change is that both men and women will now need 35 years in which to qualify for a full basic state pension – rather than 30 years which was previously the case.
- You can currently receive £168.60* per week as a basic state pension effective from 6 April 2016.
- The amount you can receive is dependant on the number of qualifying years you have worked in the UK.
- You may be eligible for an increased amount if you have built up further entitlements through earnings related schemes such as graduated pension, S2P & SERPS (state earnings related pension scheme).
- Please note: if you have contracted out of the additional state pension scheme (commonly referred to as SERPS) then your entitlements may be reduced.
Did you know you can defer taking your State Pension?
If you reach pensionable age after 6th April 2016 your State Pension will increase every week you defer, as long as you defer for at least 9 weeks.
Your State Pension increases by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every 52 weeks.
*Example: You get £168.60 a week (new rules)
By deferring for 52 weeks, you’ll get an extra £9.74 a week (just under 5.8% of £168.60).
If you reached State Pension age before 6 April 2016 you can usually take your extra State Pension as either:
* higher weekly payments
* a one-off lump sum
When you claim your deferred State Pension, you will receive a letter asking how you wish to take your extra pension. You will have 3 months from receiving that letter in which to decide.
Higher weekly payments
Your State Pension will increase every week you defer, as long as you defer for at least 5 weeks. Your entitlement will increase by the equivalent of 1% for every 5 weeks you defer. This works out as 10.4% for every 52 weeks.
*Example: You get £129.20 a week (old rules)
By deferring for 52 weeks, you’ll get an extra £13.44 a week (10.4% of £129.20).
The extra amounts to which you are entitle by deferring is paid to you along with your regular State Pension payment, the new State Pension is usually paid every 4 weeks in arrears into an account of your choice.
*This example assumes there is no annual increase in the State Pension. If there is an annual increase, the amount you could get could be larger.
Lump sum payment
You can get a one-off lump sum payment if you defer claiming your State Pension for at least 12 months in a row. This will include interest of 2% above the Bank of England base rate.
To claim a deferred state pension click on the link: How to claim a deferred state pension
We at TWA can assist you with a review your UK Pension entitlements and consider whether to make top up contributions
To see what age you are entitled to a British State Pension please look at: State Pension Age Calculator on Directgov.
Please call one of our consultants today or complete the contact us form and one of our consultants will be in touch.
*subject to certain conditions and exchange rate fluctuations
Please contact TWA to ask about topping up your entitlement to a British State Pension.