Enjoy Your Retired Life with the Government Pension
Everyone needs to have a secure future coupled with a comfortable living standard after retirement from a job. This will require you to carefully plan your finances and so pensions are of importance.
There can be a private and government pension. Pension is actually a regular tax-free income that you are entitled to when you retire. It is a more tax-efficient method of saving. The department of the government dealing with the management and administration of state pensions is The Pension Service.
Men over the age of 65 and women over the age of 60 claim the state or government pension. Not everyone qualifies for the government pension, with the entitlement being calculated on the number of national insurance contributions that you have paid. For obtaining the full government pension, you need to have paid the contributions for about 90% of your adult working life.
The minimum requirement for you to receive the basic government pension is 25% of the qualifying years. If you have less than 25% of the qualifying years you will not get any state pension but you can avail other government pension benefits like:
Pension credit: You will receive this if your income is very low. The payments can be made directly to your bank account.
Over 80 pensions: If you are over 80 and have a low income you will benefit from this. This is a taxable income with payments being made directly to your bank account.
Winter fuel allowance: If you are over 60, you can benefit from the winter fuel allowance to heat up your home.
Free or concessionary television license: This government pension benefit is applicable for everyone above the age of 75.
Bus pass: Reaching the age of 60 you can apply for a bus pass at your local council, this will offer you free off-peak travel all over the country.
Increase your pension amount
State Earnings-Related Pension Scheme (SERPS): This is the government’s second pension scheme enabling you to earn more than £75 per week for making extra national insurance contributions or NICs. SERPS appeared to be an unjust government pension for the people who have considerable gaps in their employment record or have low incomes.
You can contract out of SERPS either for not paying the extra NICs or for engaging the extra NICs to a private pension fund.
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