Pension Schemes
Your questions answered
Q: I am a woman who will be 60 after 6 April 2010. When can I get my State Pension?
A: State Pension age for women will increase in steps from 60 to 65 between 2010 and 2020. From 2020 it will be the same as men’s State Pension age. State Pension age will then increase gradually from 65 to 68 between 2024 and 2046.
Q: I am due to retire soon after 2012. Will I be enrolled into a Personal Account?
A: If your employer provides a pension scheme you may be enrolled into that scheme or into a personal account. You will be able to opt out if you want to. You will be able to contribute to the personal account scheme until you are 75 if you continue working.
Q: I have heard that State Pension Age is going to increase for both men and women. Is that right?
A: Yes that is correct. State Pension age for both men and women will rise gradually from 65 to 68 between 2024 and 2046. But before that women’s State Pension age is to increase to make it the same as men’s (65). This was legislated for in the 1995 Pensions Act. It means that State Pension age for women will increase gradually from 60 to 65 between 2010 and 2020.
Q: Will I be entitled to Winter Fuel Payments?
A: Until 2009, the minimum age for getting a Winter Fuel payment is 60. Between 2010 and 2020 this will rise in steps to 65 for both men and women.
Q: Why won’t my pension be up rated in line with earnings until 2012 at the earliest?
A: The change is timed to coincide with other economic factors associated with the overall package of Pensions Reform. However if you are on a low income you may be able to get Pension Credit. The standard minimum guarantee in Pension Credit is already up rated in line with earnings and this will continue.
Q: I understand that Pensions Reform will change the number of qualifying years needed for a full State Pension. How will this affect me?
A: As you reach State Pension age on or after 6 April 2010 you will only need 30 qualifying years to get a full State Pension.
Q: I have built up over 30 years paid contributions. Will I be able to get a refund?
A: Only people who have paid voluntary contributions on or after 25 May 2006, are due to reach State Pension age on or after 6 April 2010, and did not know about the State Pension changes when they paid the voluntary contributions, may be entitled to claim a refund.
People who have paid more than 30 years Class 1 or other non voluntary contributions are not entitled to claim a refund.
Q: I will reach State Pension age after 6 April 2010. Do I still need to have credits / contributions for at least 25 per cent of my working life to qualify for any basic State Pension?
A: No. Both men and women reaching State Pension age from 6 April 2010 will need 30 years qualifying years (rather than 39 for women and 44 for men as now) for a full basic State Pension. If you do not have the full 30 years of paid or credited contributions to get a full State Pension, each year you do have will give you one thirtieth of the full rate Basic State Pension.
Q: I am a woman getting Jobseeker’s Allowance and will be 60 years old after 6 April 2010. Will I still receive my State Pension (and be able to get Pension Credit) when I am 60?
A: No, you will not be entitled to your State Pension (nor be able to claim Pension Credit) when you are 60. State Pension age for women born on or after 6 April 1950 will rise in steps from 60 to 65 between 2010 and 2020. (This is also the age at which people can claim Pension Credit). It will rise again for both men and women from 65 to 68 between 2024 and 2046.
Q: My wife and I are in receipt of Incapacity Benefit. I have heard that State Pension age is increasing and that we will be affected because we are both due to reach the current State Pension age after 6 April 2010. Is this correct?
A: Yes, State Pension age will rise from 60 to 65 years old for women between 2010 and 2020 and then rise gradually to 68 years old for both men and women between 2024 and 2046. Benefits such as Incapacity Benefit or Jobseeker’s Allowance will continue to be available until the new State Pension age.
Q: I am due to reach State Pension age in August 2011. My wife will be 50 years old (in 2011). She has always been financially dependent upon me. Will I be entitled to Adult Dependency Increase (ADI)?
A: No, you will not be eligible to ADI if you reach State Pension age after 6 April 2010, even if your wife is still financially dependent upon you and has no earnings. However, if you and your wife will be on low income you may be able to get Pension Credit.
Q: I’m staying at home to look after the children. My husband is working. The Child Benefit is in his name. Will I get credits towards my pension?
A: No. The credits will go to the person who’s getting Child Benefit. As your husband is already paying National Insurance contributions, the credits won’t improve his pension. You should think about changing your arrangements so that you’ll get the Child Benefit and the new credits.
Although the new credits don’t start until 2010 you could get Home Responsibilities Protection before then if the Child Benefit is in your name. Home Responsibilities Protection is only given for full tax years.
