The Pensions Act 2014 has put in place changes to the State Retirement Pension for those who reach retirement age from 6/4/2016. Key differences compared to the current system-
- 35 years of contributions will be required to achieve a full State Retirement Pension, 10 years will be the minimum to qualify for any.
- The new State Pension will be set above the minimum guarantee level for Pension Credit taking many claimants off means tested benefit.
- It will replace both the State Retirement Pension and Second State Pension.
- From October 2015, existing pensioners and those who reach State Pension age before 6 April 2016 will be able to acquire up to £25 of additional State Pension through a new State Pension top up scheme. The new type of voluntary National Insurance contribution is called Class 3A.
The equalisation of men's and women's retirement age continues and is not affected.
By November 2018, both men and women will retire at age 65. Click here for our updated Introduction to Welfare Benefits 2014 course.