Pension Changes. Good news!

We are living longer, which is the good news. However, to make the most of it you need to think about how you are going to fund your retirement.

The changes to the State Pension will help you get started – and they may mean more people will get the full basic State Pension.

To get the full basic State Pension you need to build up a certain number of years of contributions, called ‘qualifying years’. Prior to the changes on 6 April 2010, this was 39 years for women and 44 years for men. Following the changes this has now reduced to 30 years, to make it easier to build up a full basic State Pension.

Whilst this is a step in the right direction, it will not enable you to live in the lap of luxury when you retire – so if you don’t want the prospect of always having to count up the pennies, you’ll need to act now!

Pensionable age is also changing

If you’re a woman born on or after 6 April 1950 you will be affected by the changes to the new State Pension age.

Between 6 April 2010 and 5 April 2020, the State Pension age for women is gradually rising from age 60 to 65, to match the State Pension age for men. Then from 2024 to 2046, the State Pension age for both men and women will gradually rise from 65 to 68.

More change…

Also, following a major pensions review and the publication of the Pensions Bill in 2007, the government has decided to introduce a new, low-cost, pension scheme called ‘Personal Accounts’ from 2012.

This can all start to sound a little confusing, so what should you do?

Time to take stock of the situation

You don’t have to wait for the Government before you act. In fact, the earlier you start, the more choices you have. But first you need to consider where you currently are and what you already have.

How many companies have you worked for and left partly funded plans with? How many plans have you taken out yourself?

What other provision do you have – eg a savings account, investment plan, perhaps a second house or even your own business.

Then you need to take charge, because your pension fund may be one of the largest assets you have.

Our pension review service is designed specifically to help you take charge of your retirement plans. We take a comprehensive look at what provision you have, where that provision is going to take you, consider how this fits with where you want to be and then, if appropriate, suggest the best options to make up any shortfall for you.

Take charge of things now!

For more information, simply contact us and we can outline the possibilities for you, without obligation.

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