State Pension to change for millions this year – are you affected? | Personal Finance | Finance
[ad_1]
The State Pension will change for millions of Brits this April. The Department for Work and Pensions (DWP) has released a full list of those who will be affected. Millions will see a welcome rise to their pensions – are you one of the lucky ones?
The DWP has confirmed the State Pension payments will rise for men and women by 3.1 percent later this year in line with the Consumer Price Index (CPI).
This rise will be welcomed, but many are disappointed the Government has scrapped the triple lock in a bid to cover the spiralling costs of the pandemic.
Some pensioners have warned they are struggling to cope as the cost of living soars.
The triple lock would have seen state pension payments increase in line with average earnings (a rise of 8.3 percent), instead of 3.1 percent rise in line with September’s inflation rate.
READ MORE: Woman misses out on over £400 a month by claiming different benefit
The state pension is a two-tier system. It’s made up of the old basic state pension and the new state pension.
The old basic state pension is for women born before April 6, 1953, and men born before April 6, 1951.
A specific group of women who receive the old basic state pension could see the biggest changes to their payments.
Women who receive the Married Woman’s Pension can expect an increase in their payments this April.
DON’T MISS:
The Married Woman’s Pension allows married women who may have been financially dependent on their husbands during their working life to receive a pension in their retirement.
Many will be entitled to this pension even if they haven’t paid 30 years worth of National Insurance contributions.
If their husbands qualify for the full basic state pension, then married women will be eligible to claim 60 percent of the full rate of the basic state pension.
At the moment married, divorced or widowed women who claim the Married Woman’s Pension. will be getting around £82.45 a week.
But as the state pension will rise in April, 60 percent of £141.85 equates to £85.11 a week.
This may sound like a small rise, but in a year this could be worth around £4,425.72, or £340.44 a month.
Who is eligible for the basic state pension?
You are eligible to claim the basic State Pension if you were born before 6 April 1951 if you’re a man or 6 April 1953 if you’re a woman.
If you were born on or after these dates, you can only claim the new state pension.
You will need a total of 30 qualifying years of National Insurance contributions or credits to claim the full basic State Pension.
This means you must have been working and paying your National Insurance for 30 years.
Or you must’ve been receiving National Insurance Credits, such as for unemployment, sickness or as a parent or carer
Alternatively, you can qualify if you have been paying voluntary National Insurance contributions.
[ad_2]
Source link
