Page 34 - BoAML Plan Handbook 17 V2.0

State benefits

In addition to the savings you will receive from the Plan and any other private pension
arrangements you have, the State also provides pension benefits.

The State Pension State Pension Age

A single-tier State Pension was introduced in April 2016 to Contracting out of the S2P The State Pension Age for both men and women begins
replace the Basic State Pension and State Second Pension to rise above 65 from December 2018.
(S2P). The full rate of single-tier State Pension for someone • If you were contracted out for a substantial time, the amount
with 35 years of National Insurance qualifying service, of single-tier pension you will have built up is likely to be • By 6 October 2020, it will reach age 66 for everyone
retiring after April 2016, is £155.65 a week (£8,093.80 a year). closer to the amount of the current Basic State Pension. and more increases are planned.
The amount of new State Pension you can receive will depend on • If you were not contracted out, the amount of single-tier • Visit the Government website at
www.gov.uk/state-pension-age to see what your
the number of qualifying years you have built up, and whether or pension you have built up to date is likely to be closer State Pension Age will be.
not you have been contracted out of the S2P before April 2016 to the single-tier pension amount.
(see below). This may mean your State Pension is lower than the Find out more on the Government website at
headline figure above. www.gov.uk/changes-state-pension.
• If you have less than 35 ‘qualifying years’, you receive a
proportion of the single-tier pension based on the number
of years you have paid them. For example, with 20 years
of contributions, you would receive 20/35 .
ths
• No single-tier pension is payable if you have less than
10 qualifying years.
• You can pay additional National Insurance contributions
to increase the number of qualifying years you have.

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