In April 2020, the state pension payments will change. These payments can form a significant source of income for many during later life. Here we give some basic information about the state pension and how much you can expect to receive.
Pension types
There are two types of state pension. There is the basic state pension and the new state pension. Which one will you get? Well, this depends on when you were born and when you reach state pension age. For men born before April 1951 and women before April 1953, you will claim the basic state pension. Anybody born later than this will receive the new state pension instead.
How much you will receive
Those receiving the basic state pension will receive £129.20 per week.
The people who qualify for the new State Pension will receive £168.60 per week.
When you consider that the average rent per month is £600 per month, you can see that this is still only a nominal amount.
If you would like any advice on maximising your income when you retire, contact an independent financial advisor.
The content in this article was correct on 10th February 2020. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.
