Simon Prestcote, IFA Barnet - How much is your state pension worth

Thursday 26 January, 2023

If you are not in receipt of your state pension or haven’t checked your state pension forecast recently, we suggest now would be a good time to look at it and to establish whether you have any gaps as you can pay voluntary contributions for the previous six years.  Contributions from 2006-2016 can be paid up to the end of July 2023.

Check your State Pension forecast - GOV.UK (www.gov.uk)

Most people can claim the state pension, a regular payment from the government when they reach state pension age, which varies depending on your gender and date of birth.  

https://www.gov.uk/government/publications/state-pension-age-timetable

Please be aware that by clicking into the above links you are leaving the Lonsdale Services website.  Please note that Lonsdale Services is not responsible for the accuracy of the information contained within the linked site accessible from this page.

How much state pension will you receive?

Your national insurance contributions include contributions you have made when you work and any contributions that are credited to you when you were unable to work.   For example, you get national insurance credits when you claim support allowance, Jobseeker’s allowance, or employment and support allowance (ESA).  The new full state pension is £203.85 per week from the 2023/24 tax year.  The only time you could get more than this is if you defer taking your state pension or have an Additional State Pension.  (Please note the figures are correct as at 03.01.2023 and may be subject to change.  This state pension figure quoted is applicable to a man born on or after 6 April 1951 or a woman born on or after 6 April 1953).

How to pay voluntary contributions to receive a full state pension

If you check your state pension forecast and you don’t have enough qualifying years to get a full state pension you can sometimes make up the shortfall in National Insurance contributions if you pay voluntary contributions.  Normally you can pay voluntary contributions for the previous six years.  So, for example you can make up any gaps for the tax year 2016/17 until the end of July 2023.  There are sometimes circumstances where you can go back further than six years, but these are dependent on your age. 

How much income do you need to enjoy your retirement?

Simon Prestcote, independent financial adviser at Lonsdale Wealth Management, Barnet, North London said:

‘If you know how much state pension you will receive it will enable you to work out how much more you need to save yourself to enjoy your retirement.  Our financial advisers are qualified to offer you complete pension planning and retirement advice.  We use cashflow planning to help you visualise your wealth and retirement savings to achieve your financial priorities.  We review your current and future income and expenditure, life events and other decisions to work out how much retirement income you need.  We review your pension options, so you make the most tax efficient financial planning choices.  Lonsdale Services is an FT Adviser Top 100, and in 2018 Lonsdale Services won the Best Individual Pension Advice award for the Southeast and Anglia region at the Retirement Planner Awards.  If you need retirement planning advice, contact our independent financial advisers.’

In Summary…

Prepare for your retirement by finding out how much state pension you will receive and review your other pensions.  Complete our booking consultation for a no obligation financial planning consultation with your local Lonsdale Wealth financial adviser in North London, St Albans, Ware, Harpenden, Chippenham, Ringwood, Leeds / Bradford, Stafford, and Wimbledon.

Please note: 

‘You should remember that the value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.’

For more information read:

Simon Hawker – Lonsdale Services voted in top 100 financial advisers in UK
Neil Homer – When should you pay for independent financial advice?
Understanding Investments – Business Owners retirement planning
Howard Goodship, Ringwood - Saving tax through pension contributions

 

 

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