New State Pension
We want to make sure that the Armed Forces and their families receive fair treatment from the nation which they serve, as set out in the Armed Forces Covenant. As well as the new State Pension, this year has also seen the launch of a new National Insurance credit designed to help Armed Forces spouses and civil partners protect their future State Pension.
With today’s launch of the new State Pension, we’re starting to bring clarity to a system that few people truly understand.
Last autumn, I published a number of blog entries to help explain how the old system worked. Through this entry, which focusses on the period up to 5 April 2016, I want to show how people may have paid different amounts of NI over their working life through to the end of the tax year 2015/16, and how this has contributed to the State Pension they are or will become entitled to.
In previous blogs I have outlined the changes to the State Pension from 6 April 2016. There are a couple of ways you can check how these changes will affect your own position.
As you’re reading this blog it’s likely that you are already aware that this is an important time for the State Pension. But do your employees, colleagues, members or networks know about the changes?
We’re just one month away from the launch of the new State Pension on Wednesday 6 April 2016. Ahead of next month’s launch, here is a summary of the key points you may need to know.
To determine your new State Pension, a ‘Starting Amount’ calculation is made. This will form the base on which, in most cases, you may be able to add to your State Pension under the new system.
2015 has been an exciting year for UK pensions with more workers in small and micro firms being enrolled in a workplace pension. And 2016 looks set to be even busier.
As we have seen, the outgoing State Pension system is a very complicated beast. In April 2016, we will be replacing this with a new clearer system.
People who start work after 6 April 2016 will have the benefit of a much simpler State Pension system. Many of the complexities that exist with the current system will, over time, be consigned to history.
