Be more money savvy by knowing the basics about money issues that effect you. What do you know about the State Pension? You might think, 'that's years away yet!!' but time flies and by understanding just a little could make you decide to make changes now that will benefit you in the long run. So here are the basics:
The government, or the state, pays you an income after you have retired. It is intended to make sure we all have a basic amount of money to support us in our old age. The state pension age is currently 65, however it is slowly rising as generally the population is living longer. Not everyone will qualify for the full amount either.Your entitlement is linked to your National Insurance contributions and you will only receive it in full if you have paid these for a certain number of years.
So, to sum up.......................
. The full state pension is currently £164.35 per week if you have worked a full 35 years.
. After December 2018 the state pension age will be 66,and its only going to go up!
. 50 today? Then you will be 67 when you get the state pension.
. To very roughly work out your weekly state pension, multiply the years you've worked by £4.70
. Currently, if you work and are a Basic Rate Tax Payer, for every £80.00 you save the government add a contribution of £20.00, saving a total of £100.00 in your pension pot.