You don’t have to be a financial genius to know the more you save for retirement the more financially secure you will probably be when you do stop working 

Saving can take many forms so don’t forget that some of those deductions, taken by the Government from your salary each month, do actually go towards helping you in retirement – towards your State Pension!

Most people can claim the State Pension when they reach their State Pension Age but be aware that the Government has laid out plans to increase this over time to age 68 for both men and women. You can check your State Pension Age online, simply type “Check your state pension age” into the address bar of your browser and use the Government’s online tool.

But here’s a summary: 

The old basis for calculating your State Pension was complex. For most people it was made up of two parts:

• The Basic State Pension; and
• An earnings related element, referred to as the State Earning Related Pension Scheme (later helpfully renamed the State Second Pension).

As a member of the HP Retirement Benefits Plan, or if you were a member of a similar arrangement with your previous employer, you may have opted-out of receiving some, or all, of the second element, and subsequently paid less National Insurance Contributions. 

The new basis, which came into effect for anybody reaching their State Pension Age on or after the 6th April 2016, created a single-tier State Pension for everyone. However, for those who opted-out of the State Second Pension an adjustment will be made.

You might like to know that you can get a personalised estimate of how much State Pension you may receive, and information on how you may increase this amount, from the ‘Check your State pension service’. It allows you to view your all important National Insurance contribution history as to get the full basic State Pension you will need a total of 30 qualifying years of National Insurance contributions or credits. Just go to www.gov.uk/check-state-pension. 

You should check your National Insurance contribution very carefully, and if you think it maybe incorrect you should contact the Government’s Future Pension Centre. You will find their contact details at www.gov.uk/check-state-pension or just type ‘Future Pension Centre‘ into your preferred website search engine. 

You should also be aware that it has been reported in a small number of cases the online State Pension estimate is incorrect. This is more likely for those who during their career have worked for several different employers or have transferred their pension savings from one scheme to another.

You therefore may also wish to request a State Pension Statement. Again, you can request one by contacting the Government’s Future Pension Centre.

Thank you for watching.