Rates
Basic State Pension
The full basic state pension from 6 April 2008 is as follows:
- Single person £90.70 per week
- Married Couple £145.05 per week
It is important to remember though that the rates quoted are the maximum and if you have not got a full contribution record then you will be entitled to less than the above amounts.
Graduated Pension
The rate of pension is dependent on how many contributions you have made between April 1961 and April 1975. For every £7.50 (man) or £9 (woman) of graduated contributions paid you get 10.2 pence.
Pension Credit
The aim of Pension Credit is to give everyone aged 60 and over an income of at least:
- £124.05 a week (single person); or
- £189.35 a week (two people living together).
Please note that these are the standard rates. An individual who is a registered carer may get an extra £27.75 a week and a registered disabled person may qualify for an extra £50.35 a week.
Individuals over aged 65 may also be rewarded for their savings, put by to help them in retirement, by up to:
- £19.71 a week (single person); or
- £26.13 a week (two people living together).
State Second Pension
The amount of State Second Pension you will receive is based upon on your earnings above and below the Lower and Upper Earnings Limits. It will also depend on whether or not you were contracted-out through a pension plan. The calculation of the State Second Pension is complicated and has been changed since its introduction in 1978. Since 6 April 2002, its calculation basis was changed to be more generous for low and moderate earners.
Extra benefits for dependants
Children
If you received an increase in respect of dependent children before 5 April 2003, the extra pension is:
- £9.00 for the oldest child who qualifies for Child Benefit
- £11.35 for each other child who qualifies.
No claims for this benefit can be made after 6 April 2003.
Adults
You may get £54.35, for a husband, wife, civil partner or a person looking after a child for you, if you get paid some basic State Pension and you are entitled to Child Benefit for the child. Any earnings of the person looking after a child for you may affect the amount you get.
Age 80s Age Addition
When you reach 80 the state pension is automatically increased by 25 pence a week.
Payment of State Pensions
The government has changed the system of payment so that all pensions from the state and pension credits are paid direct into your bank, building society or Post Office account instead of by order book or giro-cheque. If you make a new claim for a state retirement pension or pensions credit after April 2003, you will have it paid into an account. If you claimed before April 2003 and are paid by order book or giro, you do not need to do anything until you are asked to provide details of the account you want to use. If it is more convenient you can ask to switch to direct payments before you get the official request. Most order books will run out between October 2004 and February 2005.
Increases
The state pension is increased each April in line with inflation. From April 2012, it will increase in line with earnings.
Q & As
- How Do I find out how much State Pension I will get?
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You can complete Form BR19 available from your local Social Security Office or apply online for a forecast on www.thepensionservice.gov.uk.
- How do I apply for Pension Credit?
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You can apply for Pensions Credit by ringing 0800 991234 (0808 1006165 in Northern Ireland). Application forms can also be obtained from your local Pension Centre. For further details see: www.thepensionservice.gov.uk/pensioncredit.
- I am in my employer's scheme will that affect my level of pension from the state?
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If you've been a member of a contracted out pension scheme, your entitlement to the State Second Pension will be reduced by an amount called the Contracted Out Deduction (COD). This takes into account the period you were contracted out. This does not affect your Basic State Pension entitlement.
- Do State Pensions Increase?
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State Pensions increase every year in line with inflation and the increase is paid automatically. From April 2012, it will increase in line with earnings.
- How are State Pensions Paid?
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Under the new direct payment system which has been put in place by the government all state pensions are paid straight to a bank account and is no longer paid in cash
Instead of the order books, girocheques or payable orders that you use at the moment, your money will be paid straight into an account of your choice at a bank, building society or the Post Office
- Will I get a pension for my wife?
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If your wife has only paid contributions based on the married woman's reduced rate also known as the married woman's stamp or has never worked then she will not receive a pension in her own right. However she can receive a basic state retirement pension of 60% of your entitlement based on your contribution record. She can claim this when you reach your State Pension Age.
- When is the State Pension paid?
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Your state Retirement Pension first becomes payable from the Monday following your birthday not from the birthday itself; thereafter it is paid every Monday.
