If you reach state pension age (SPA) after 6 April 2015, you will receive benefits under the new “flat rate” or “single tier” pension. This includes men born on or after 6 April 1951 and women born on or after 6 April 1953. We provide Financial Advice, Clifton, Bristol.

However, it is not as simple as saying you’ll receive this headline rate of £155.65 a week. To get the full amount, you will need to have 35 years of National Insurance Contributions (or credits). If you have between 10 and 35 years’ credits, your entitlement will be calculated on a pro-rate basis.

When determining you pension, the government will make two calculations. These are the amount you would be paid under the old scheme (including the basic and additional state pension) and the amount you would have received if the new scheme had been operating throughout your working life.

Your “starting amount” will be the higher of these two figures. This provides some protection for those who would be entitled to more under the old scheme through additional state pension payments, but as the additional state pension (and the ability to contract out) will cease when the new scheme is introduced, there will be no further opportunity to carry on growing your entitlement.

The difference between the full new state pension and your starting amount is called a protected payment and, like your pension, will increase in line with inflation.

If your starting amount is less that the full rate because you have not made enough NI contributions, you may be able to boost your entitlement by making voluntary NI contributions.

You can find out how much state pension you can expect by getting a state pension statement online at Gov.uk/state-pension-statement or call the Future Pension Centre on 0345 3000 168.

(Moneywise, January Edition)

Financial Advice, Clifton, Bristol

If you would like to speak with one of our Independent Financial Advisors and potentially receive financial advice, please contact us on 0117 923 7652. We are based in CliftonBristol but we are happy to service clients from across the UK and we provide free initial meetings at our client’s convenience.

Churchill Wealth Management Limited is located at 13 Alma Vale Rd, Bristol BS8 2HL, United Kingdom.

About Us: Churchill Wealth Management is a team of independent financial advisors/financial advisers (IFAs) based in Clifton, Bristol. We provide independent financial advice, including pension advice, investment advice, inheritance tax planning and protection/insurance advice.