The Government has changes it rules on state pensions – with a new maximum on how much they pay out per week.
A state pension is issued to a person who has retired from their employment – but the amount a person receives depends on a number of factors.
Granted by the Government, people on the new state pension must have retired on or after April 6, 2016.
These people could receive a maximum of £175.20 per week for a minimum 10 years in National Insurance contributions.
On the old State Pension, the maximum a pensioner can expect to receive is £134.25 per week, with 30 years or more in NI contributions.
The government has been implementing a number of state pension changes over the past few years and months – and the penultimate change took place on Monday, July 6, reports The Express.
From December 2018, the State Pension age for both men and women has been increasing to 66.
The government aims for this goal to be fully in place by October 2020, but has a few more changes to make.
Anyone who was born between August 6, 1954 and September 5, 1954 will see their entitlement age increase from 65 to 66 from this week.
One more change is due to take place in September – so it is important for those close to this age bracket to stay vigilant.
The government has outlined its reasons for the State Pension age change, and further changes are scheduled to occur in the future.
It says the increase is in line with higher life expectancy in the UK.
Britons are now spending a larger proportion of their adult lives in retirement than ever before, and so the government says it is making adjustments to take this into account.
A review undertaken in the last few years saw the government announce plans to bring its State Pension age timetable forward.
Consequently, the State Pension age is set to increase to 68 between 2037 and 2039.
This means larger proportions of the population will be required to work for longer until reaching entitlement to State Pension.
By logging onto a portal, accessible through the government website, Britons will be able to use a calculator which provides details concerning entitlement.
This aims to clear up any confusion for someone who is not sure if the changes are affecting them.
If a person enters their date of birth and gender, the State Pension tool will reveal the age at which they could be set to retire.
It can also provide people with additional help as to how to maximise their State Pension sum.
