From April 2010 changes are being made to State Pension qualification.
If you already receive or will reach State Pension age before 6 April 2010, the basic State Pension will increase in line with earnings from 2012 at the earliest, meaning quicker rises than now.
Key changes to the basic State Pension for people reaching State Pension age on or after 6 April 2010 are:
- reducing the qualifying years needed for a full basic State Pension to 30
- any qualifying years will give entitlement to some basic State Pension
State Pension age for women born on or after 6 April 1950 will increase from 60 to 65 between 2010 and 2020. The State Pension age for all will further increase from 65 to 68 between 2024 and 2046, affecting anyone born on or after 6 April 1959.
The State Second Pension (S2P, formerly SERPS) is paid in addition to the basic State Pension. Entitlement depends on your individual circumstances.
Key changes to S2P will include:
- combining earnings contributions with NI credits for caring to gain qualifying years of S2P from 2010
- allowing child carers, approved foster carers and those spending 20 hours a week caring for severely disabled people to build entitlement from 2010
- changing the accrual to provide a simple, flat-rate weekly top-up to the basic State Pension
From 2012 at the earliest, contracting out of S2P into a private pension on a defined contribution basis will not be allowed.
For further information or advice please contact the Ensors Pension team
