State Pensions Flashcards

1
Q

From which year will state pension age increase to age 66?

A

October 2020

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2
Q

NI credits for basic state pension are provided in what circumstances?

A
  1. Where a person is in receipt of unemployment, maternity or sickness benefits.
  2. Unemployed men under 65 who have reached or over state pension of a women with same DOB
  3. Parents & foster parents looking after children up to the age of 12 & other carers providing 20 hours of care per week
  4. Age 18 & over in full time training for up to a year
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3
Q

How can you defer the receipt of the basic state pension?

A
  1. Defer for a higher income (pension increases by 0.2% for each week of deferral, equivalent to 10.4% pa)
  2. Increase in pension can be replaced by a lump sum (equal to amount of pension that would have been received + interest)
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4
Q

How many years NI records do you need to have to receive the full state pension after April 2016?

A

35 years

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5
Q

From 6th April 2010, an individual will qualify for a full state pension after how many years NI contributions?

A

30 years

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6
Q

How can an individual ensure they receive a full basic state pension if they haven’t quite reached the required years of NI contributions?

A

By paying the equivalent Class 3 NICs for the number of years missing.

They must be paid within 6 years of the end of the tax years missed.

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7
Q

How is basic state pension taxed?

A

It is paid gross and any tax owed is collected via existing income by adjusting the tax code.

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