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Published byAlexander Harrington Modified over 9 years ago
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1 Changes To State Retirement Pensions
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2 What’s Changing Rise in State Pension Age Knock on effects for Pension Credit, Winter Fuel Payment, HB/CTB Personal Allowances, Concessionary Travel Simpler, more equal pensions Increased entitlement
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3 Rise in State Pension Age April For women - age rises from 60 to 652010 - 2020 Age for pension credit etc* rises 2010 - 2020 with women’s state pension age For all - age rises from 65 to 68 2024 - 2046 * Winter Fuel Payment, HB/CTB Personal Allowances, Concessionary Travel NHS Benefits currently stay at age 60, may be change in future
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4 Simpler, more equal pensions April Simpler contribution rules2010 Less qualifying years needed2010 New weekly credits for parents & carers2010 More rights for civil partners, wives & husbands2010 Abolish adult dependant increase2010 Simplify State Second Pension2010 - ? Increase basic pension with earnings 2012 ?
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5 When do changes begin? Changes always start at beginning of National Insurance Contribution Year 6 th April
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6 State Pension Age WomenMen Until 201060 65 2010 – 2020 phased 65 From 20206565 2024 – 20266666 2034 – 20366767 2044 – 20466868
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7 Contribution Condition New Rules from April 2010 Paid, ‘treated as paid’ and credited contributions all count equally 30 qualifying years are needed for a full basic pension 1/30 th of full basic pension is paid for each qualifying year
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8 Contribution Conditions Previous Rules 1ST CONDITION Paid or treated as paid 1 year's contributions 2ND CONDITION Paid, treated as paid or credited Enough qualifying years across working life Both conditions had to be met
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9 Contribution Conditions Previous Rules Number of qualifying years needed for full basic pension Women 39 Men 44 Minimum number of qualifying years (25%) needed for any Basic Pension to be paid
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10 Home Responsibilities Protection From April 2010 Weekly Credits if one of the following applies: Child benefit for a child aged under 12 Foster parent Caring for a disabled person & not on carer’s allowance Previous years’ HRP converted to credits
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11 Home Responsibilities Protection Previous Rules Reduced number of qualifying years needed for full basic pension Awarded for each complete tax year where one* of the following applies: Child benefit for a child aged under 16 Foster parent Caring for a disabled person (see CPAG p752) * A combination is allowed in some circumstances
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12 Marital Status & Pensions New Rules from April 2010 Spouses & Civil Partners -reduced rate basic pension (Cat B) on NI of spouse / civil partner Separated Spouses & Civil Partners -reduced rate basic pension (Cat B) on NI of spouse / civil partner For men & civil partners, spouse / civil partner must be born after 5 th April 1950 Previously only wives qualified for these Cat B pensions
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13 Marital Status & Pensions New Rules from April 2010 Cat B pensions can be claimed where spouse / civil partner has deferred their pension Previously Husband had to claim pension for wife to claim Cat B
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14 Adult Dependant Increase Claimed for spouse / civil partner under pension age Abolished from 6 th April 2010
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15 Worst Deal Still living with spouse / civil partner or separated Can increase basic pension up to 60% of their basic pension when they reach SP Age (CAT B) Better deal Divorce Can increase basic pension up to a full basic by substituting chunk of ex’s NI record for yours (CAT A) Best Deal Bereavement Can increase basic, additional and GRB For all deals - amount depends on your spouse’s / civil partner’s NI - only NI of last spouse / civil partner can be used For better or worse?
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