Latest news with #Pension
Daily Record
10 hours ago
- Business
- Daily Record
New State Pension age set to change next year for people with these birthdates
The State Pension age will increase from 66 to 67 between 2026 and 2028. Pension Credit – Could you or someone you know be eligible? The Department of Work and Pensions (DWP) is urging people born between certain dates to check when they will be eligible to claim their State Pension using the online tool at The State Pension age is set to start rising from 66 to 67 next year, with the increase due to be completed for all men and women across the UK by 2028. The planned change to the official age of retirement has been in legislation since 2014 with a further State Pension age rise from 67 to 68 set to be implemented between 2044 and 2046. In a post on X, formerly Twitter, the DWP wrote: 'Born between 6 April 1960 and 5 March 1961? Check today to find out what your State Pension age will be.' People born on April 6, 1960 will reach State Pension age of 66 on May 6, 2026 while those born on March 5, 1961 will reach State Pension age of 67 on February 5, 2028. You can check your own State Pension age online here. It's important to be aware of these upcoming changes now, especially if you have a retirement plan in place. Everyone affected by changes to their State Pension age will receive a letter from the DWP well in advance. The Pensions Act 2014 provides for a regular review of the State Pension age, at least once every five years. The review will be based around the idea people should be able to spend a certain proportion of their adult life drawing a State Pension. A review of the planned rise to 68 is due before the end of this decade and had originally been scheduled by the then Conservative government to take place two years after the general election - which would have been 2026. Any review of the State Pension age will take into account life expectancy along with a range of other factors relevant to setting the State Pension age. After the review has reported, the UK Government may then choose to bring forward changes to the State Pension age. However, any proposals would have to go through Parliament before becoming law. Check your State Pension age online Your State Pension age is the earliest age you can start receiving your State Pension. It may be different to the age you can get a workplace or personal pension. Anyone of any age can use the online tool at to check their State Pension age, which can be an essential part of planning your retirement. You can use the State Pension age tool to check: When you will reach State Pension age Your Pension Credit qualifying age When you will be eligible for free bus travel - this is at age 60 in Scotland Check your State Pension age online here. State Pension payments 2025/26 Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Four-weekly payment: £705.80 Annual amount: £9,175 Future State Pension increases The Labour Government has pledged to honour the Triple Lock or the duration of its term and the latest predictions show the following projected annual increases: 2025/26 - 4.1%, he forecast was 4% 2026/27 - 2.5% 2027/28 - 2.5% 2028/29 - 2.5% 2029/30 - 2.5% Recent analysis released by Royal London revealed only around half of people receiving the New State Pension last year were getting the full weekly amount - and around 150,000 were on less than £100 per week. The DWP will issue letters to all 12.9m State Pensioners in March telling them their new payment rates. This letter also encourages older people to check if they are eligible for Pension Credit. State Pension and tax The Personal Allowance will remain frozen at £12,570 over the 2025/26 financial year. The most important thing to be aware of is that people whose sole income is the State Pension will not pay income tax. However, anyone with additional income on top of their State Pension may need to pay tax. This is paid a year in arrears, so if the 2025/26 financial year's uplift takes you over the threshold, you will not receive a tax bill from HM Revenue and Customs (HMRC) until July 2026. How to get full New State Pension Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, said: 'People typically need at least 10 qualifying years of NI (national insurance) contributions to receive any State Pension at all and at least 35 years to receive the full New State Pension - though they don't need to be consecutive years. 'Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years. This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations. 'Plugging gaps in your record is relatively straightforward since the Government rolled out its new NI payments services in April last year - a State Pension forecast tool that has been checked by 3.7m since its launch.' She continued: 'People simply need to log into their personal tax account or the HMRC app to not only view any payment gaps but also check if they can plug those gaps directly through the UK Government's digital channels. 'A short survey assesses the person's suitability to pay online with those eligible to pay directly given a series of options to plug any gaps depending on when someone wants to stop working. 'Calculating whether to top up can be confusing though and ultimately there is no point paying for more years than you need because you won't get that money back.' Ms Haine added: 'People who might need to top up include those that took a career break as well as low earners or expatriates living and working abroad."
Daily Record
27-05-2025
- Business
- Daily Record
Triple Lock creating two-tier State Pension for older people warns former DWP employee
The latest figures from the Department for Work and Pensions (DWP) show there are now 13 million people of State Pension age across Great Britain, including 1.1m in Scotland. Of that total, 34 per cent are in receipt of the New State Pension while 66 per cent receive the Basic/Old State Pension. Under the Triple Lock guarantee, the New and Basic State Pensions increase each year in-line with whichever is the highest between the average annual earnings growth from May to July, Consumer Price Index (CPI) inflation rate in the year to September, or 2.5 per cent. However, additional elements of the State Pension, including deferred amounts, rise by the September CPI rate, something a former DWP employee warns is creating a 'two-tier uprating system for pensioners'. Sandra Wrench has 42 years experience in dealing with State Pensions and benefits delivered by the DWP and previously wrote to DWP Ministers in 2023 expressing her concerns. Mrs Wrench told the Daily Record how some pensioners may not be aware that this year's Triple Lock uprating of 4.1 per cent only applies to the New and Basic State Pension payment rates; additional components have risen by 1.7 per cent - the September CPI inflation rate. This is also the uprating applied to Universal Credit and other benefits delivered by the DWP. It's important to highlight that devolved benefits in Scotland, including Adult and Child Disability Payment, Pension Age Disability Payment, Carer Support Payment and Pension Age Winter Heating Payment, also increased by 1.7 per cent this month. The ex-DWP employee said: 'The Triple Lock guarantee only covers the BASIC State Pension and not all components, the other components being Additional Pension (the scheme which existed between 1978-April 5, 2016 and which you could contract out of), Graduated Pension (1961-1975), increments for deferring your State Pension, and the protected pension which is any amount in excess of the 100% rate of the new 100% State Pension which you might be entitled to at April 6, 2016. 'With the calculation of the New State Pension at April 6, 2016, in most cases, all the components of the old State Pension have been added together to give a basic State Pension, and where applicable a protected pension, which is the excess above the 100% rate of the New State Pension. 'So by adding all the components together this has brought components such as additional pension, within the scope of the Triple Lock, which was 4.1% this April 2025. Under the old scheme, additional pension would have just been increased by the CPI rate of 1.7% for this April 2025.' Mrs Wrench warned: 'With The Triple Lock relating to the basic rates of the State Pension only, this has created a two-tier uprating system for those who reached State Pension Age before April 2016 where the 100% rate of the Old/Basic State Pension is currently £176.45 a week and those who reached retirement age after April 2016 where the 100% rate of the New State Pension is higher at £230.25.' She shared an example to help illustrate the difference: A person who was State Pension Age before April 2016, has a weekly amount of State Pension as £240.00, consisting of 100% Old/Basic State Pension of £176.45, additional pension of £59.75 and graduated pension of £3.80. Compare this with a person who reached State Pension Age after April 2016, who also has a weekly pension of £240.00, but this consists of 100% New State Pension of £230.25 and a protected payment of £9.75. In April 2026, the person who reached State Pension Age before April 2016, will only have £176.45 increased by the Triple Lock, compared with a person who reached State Pension Age after April 2016, who will have a higher amount of £230.25 increased by the Triple Lock. Mrs Wrench continued: 'You can see how a person who reached State Pension Age before April 2016 has a lower percentage of their State Pension uprated by the Triple Lock compared with those who reached State Pension Age after April 2016. 'Because of this difference in basic pension and the Triple lock only relating to the basic rate of the State Pension, this will inevitably lead to those who reached State Pension Age before April 2016 falling further behind with every annual uprating.' The insider explained that when the Triple Lock was introduced in 2011, there was only one State Pension (Old/Basic), but the introduction of the New State Pension in April 2016, calls into question whether it should also be uprated under the Triple Lock. However, she warns that any future adjustment to the Triple Lock 'will particularly affect poorer pensioners, such as those who do not have other sources of income, those who are disabled and not able to work full time, and women with caring responsibilities who have had to work part time and who may not have had the opportunity to build up any private or work pension'. Mrs Wrench added: 'The DWP have confirmed they cannot means-test the State Pension, so possibly the only way that the increased costs for State Pension can be addressed is through some adjustment to the Triple Lock, and to reassess the annual uprating of the State Pension. Mrs Wrench shared two examples to help highlight the uprating impact: From April 6, 2016, a woman, who is State Pension Age after April 2016. has a Basic State Pension of £63.63, and Additional Pension of £24.82. These two components were added together on April 6, 2016 to give her a starting amount of £88.45 for the New State Pension, and this £88.45 is now all Basic State Pension under the new scheme. If you were State Pension Age before April 2016, under the old scheme the basic State Pension of £63.63 would have increased by the Triple Lock, and the additional pension of £24.82 increased by the lower CPI rate , but by adding the two together for the New State Pension from April 6, 2016, this means that all this amount is basic state Pension and increases by the Triple Lock. So those who are State Pension Age after April 2016 are at an advantage compared to those who reached retirement age before April 2016, as regards the Triple Lock increase. A person who reached State Pension Age after April 6, 2016 has the full 100% rate of the basic State Pension which was then £119.30 (under the old scheme) and Additional Pension of £75.00. Basic £119.30 plus AP £75.00 = £194.30 at April 6, 2016, which was converted into the 100% rate of the New State Pension of £155.65 (the 100% rate at April 6, 2016) plus a protected payment of £38.65. Basic State Pension increases by the Triple Lock, but protected payment increases by CPI rate, so some of the additional pension has been converted into Basic State Pension and brought within the scope of The Triple Lock. State Pension payments 2025/26 The DWP has published the full list of State Pension and benefit uprated payments on here, which also includes additional elements such as the deferred rates, which have risen by 1.7 per cent (September Consumer Price Index inflation rate). Full New State Pension Weekly payment: £230.25 Fortnightly payment: £460.50 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Fortnightly payment: £352.90 Four-weekly payment: £705.80 Annual amount: £9,175 Future State Pension increases The Labour Government has pledged to honour the Triple Lock or the duration of its term and the latest predictions show the following projected annual increases: 2025/26 - 4.1%, the forecast was 4% 2026/27 - 2.5% 2027/28 - 2.5% 2028/29 - 2.5% 2029/30 - 2.5%
Daily Record
09-05-2025
- Business
- Daily Record
Older people receive over £1,040 in monthly State Pension payments in these European countries
The UK State Pension is worth up to £230.25 each week during the 2025/26 financial year. Pension Credit – Could you or someone you know be eligible? New research has found people on the UK State Pension are being left behind in the ongoing cost of living crisis as pensioners barely break even, despite an increase in entitlement. The research, conducted by pension advisors Almond Financial, looked at the current State Pension in comparison to the average cost of living in the UK. Almond Financial then looked at similar data in European countries to establish which country offers the most to retirees in comparison to the country's current cost of living data. It then analysed the average cost of general living expenses such as food shopping, the price of a meal at a restaurant and energy bills to discover an estimated cost of living per month, excluding rent. The UK moved up four places from last year's report in the top 30, now coming in at number 11, continuing to linger just above the breakeven point for pension income. Following changes to the new UK state pension system, British pensioners are better off than they were in 2024, seeing the State Pension vs average cost of living increase slightly, by 3 per cent. However, this is still just 21.5 per cent above the breakeven point, the UK state pension pays £177 more than the average cost of living. The maximum UK State Pension will pay a total of £997.75 per month to retirees during the 2025/26 financial year and the new data indicates the monthly cost of living for a single person (excluding rent) is £820.90. It's important to be aware the State Pension can be paid weekly, fortnightly or every four weeks in the UK. The full New State Pension is now worth £230.25 each week, or £921 every pay period, while someone on the full Basic State Pension receives £176.45 per week, some £705.80 each pay period. Topping the European Pension Breakeven Index is Luxembourg. The Luxembourg pension system pays out an average of £5,426, the equivalent to a whopping £4,429 more than the UK State Pension. With a similar cost of living, at least for the meantime, pensioners in Luxembourg can enjoy a comfortable retirement. Rounding out the rest of the top five are Spain, Norway, Belgium. Sweden and Denmark. Top 10 European countries paying highest State Pension per month Luxembourg £5,426 Norway £1,839 Switzerland £1,657 Denmark £1,486 Sweden £1,373 Belgium £1,338 Netherlands £1,332 France £1,254 Spain £1,238 Ireland £1,047 A full breakdown of the monthly cost of living outgoings can be found on the Almond Financial website here. Commenting on the latest figures, principal financial adviser at Almond Financial, Sam Robinson, said: "The data is an interesting insight into just how well people can live when they retire right across Europe. 'For those approaching state pension age in Spain, retirement is a particularly enticing prospect with a healthy pension, low cost of living and not to mention the fantastic weather. 'This year's increase to the UK state pension has had a meaningful impact on pension income versus the cost of living, meaning pensions could feel slightly better off. Despite this, the UK state pension still rests just above the breakeven point, and remains weak compared to other pension systems across Europe. 'Planning for life after work is crucial, and it's important to seek advice from a pension advisor if you aren't sure where to start.' Five ways to maximise your retirement income Use pay rises to increase pension contributions and pay more into pension when loans and other commitments end Maximise employer contributions Ensure your investment approach is efficient and suitable to your financial situation Maximise tax relief available Avoid taking large lump sums of money from the pension when there isn't a need - taking the first 25% of your pension will be tax-free cash although any future withdrawals will be taxable. You can view the full report online here.
Mint
29-04-2025
- Business
- Mint
Building Financial Security Across Generations with NPS
In Episode 9 of NPS Made Simple: Your Pension Partner for Life, we explore how NPS can serve as a multi-generational wealth solution. From retirees to mid-career professionals and young earners, each family member can benefit from a stable, disciplined, and tax-efficient savings strategy. Subhasis Ghosh, CEO of Kotak Mahindra Pension Fund, breaks down how NPS supports intergenerational financial well-being and long-term independence. In this episode, we're looking at a full family: a retiree, a mid-career contributor, and a young earner. How does NPS help each of them build financial stability? It's fantastic to see a family approach retirement planning together. For the retired member, NPS offers the comfort of a guaranteed annuity — a steady income stream for life or even for the spouse's lifetime, depending on the option chosen. That removes reinvestment risk and provides great mental security. The mid-career contributor benefits from the flexibility of tier 2 accounts for contingency planning, while continuing to grow tier 1 retirement savings. And for the young investor, compounding is the superpower. Even small, regular contributions from an early age can grow into a significant corpus by retirement. That sounds like a great long-term strategy. So, how can families begin building this shared mindset around retirement? Start by talking about it early. Parents who model smart saving behavior and talk openly about money build stronger financial literacy in their children. I always say — save one-third of your income if you want a comfortable retirement. That mindset needs to be taught, just like history or math. What's your take on financial literacy in India today — is it improving? We're getting there, but the gap is still wide. More people have Demat accounts than NPS accounts, and gaming apps have far more users than either. It reflects our tendency toward instant gratification. Retirement feels far away — until it isn't. That's why financial literacy, especially around long-term planning like NPS, is critical. Is NPS alone enough, or should people have other investments too? One product is never enough. NPS should be part of a broader portfolio — PF, mutual funds, gold, etc. But what makes NPS special is the long-term discipline, the low fund management costs, the tax advantages, and the fact that you don't see the money, so you don't spend it. It's engineered to create consistency. And for those nearing retirement who may not have saved enough, is there still time? It's never too late to start, but yes, it gets tougher. The key is to adjust your lifestyle now so that you're not forced to do it later. Financial independence — especially in old age — isn't just about money. It's about self-respect. Any final thoughts for families trying to build this together? Talk to each other. Watch content like this together. If each member of the family takes ownership of their future, financial stability becomes a shared value, not just an individual goal. Watch Episode 9 to discover how families across generations can use NPS to build security, independence, and smarter savings habits — together.
Daily Record
29-04-2025
- Business
- Daily Record
New calls to increase Basic State Pension payments to £230 each week
More than 5,800 people have signed an online petition urging the UK Government to 'abolish' the Basic State Pension and move everyone currently on it to the New State Pension. Petition creator Michael Thompson also proposes increasing the New State Pension to a 'good percentage of average earnings'. The latest figures from the Department for Work and Pensions (DWP) show there are now 13 million people claiming the State Pension with 4.1m on the New State Pension (post-April 2016) and 8.8m receiving the Basic (or Old) State Pension (pre-April 2016). People on the full New State Pension are now receiving £230.25 per week and as the payment is typically made every four weeks this amounts to £921. The uplift will see annual payments rise by £473.60 from £11,502 to £11,973 over the 2025/26 financial year. However, it's important to be aware that not all of the 4.1m people on the New State Pension receive the full amount as it is linked to National Insurance Contributions. Someone on the full Basic State Pension will now receive £176.45 per week, or £705.80 every four-week payment period. Annual payments will rise by £361.40 from £8,814 to £9,175.40 over the 2025/26 financial year. The 'Abolish the basic State Pension, increase the new State Pension and pay to all' petition argues: 'We believe those on the basic Pension should be paid the difference accrued between the Basic and New State Pension since the new State Pension's introduction.' At 10,000 signatures, it would be entitled to a written response from the UK Government, most-likely the DWP. At 100,000 signatures, it would be considered by the Petitions Committee for debate in Parliament - you can view it online here. Last month, Reform UK MP Richard Tice asked the DWP if it had made an assessment of the impact of the difference between the Basic and New State Pensions, and whether it has 'considered the potential merits of equalising these rates'. In a written response , Pensions Minister Torsten Bell said: 'The Government has made a commitment to the Triple Lock for the entirety of this Parliament which will mean spending on people's State Pensions is forecast to rise by over £31 billion. 'It is not possible to make direct, like for like comparisons between State Pension amounts under the new State Pension and the pre 2016 State Pension systems. While the headline full basic State Pension is £169.50 per week (2024/25 rates), people under the pre 2016 system may also receive Additional State Pension. If instead they had been contracted-out of the Additional State Pension, they will also have a workplace or private pension.' He added: 'It is also the case that not everyone under the new State Pension system will receive the full headline amount of £221.20 per week. Although the systems are different, they both reflect the National Insurance contributions an individual has made. This is reflected in the average amounts that people receive.' The full list of State Pension and benefit uprated payments for the year ahead can be found on here , which also includes additional elements such as the deferred rates, which are rising by 1.7 per cent (September Consumer Price Index inflation rate). Full New State Pension Full Basic State Pension The Labour Government has pledged to honour the Triple Lock or the duration of its term and the latest predictions show the following projected annual increases: Recent analysis released by Royal London revealed only around half of people receiving the New State Pension last year were getting the full weekly amount - and around 150,000 were on less than £100 per week. The DWP will issue letters to everyone of State Pension age this month telling them their new payment rates. This letter also encourages older people to check if they are eligible for Pension Credit. Check if you are eligible on here.
