Your State Pension Age has increased! - When will you be able to access your state pension?
The state pension age is increasing for those aged 49 and under; this essentially means that you will not receive your state pension at your 65th birthday, and may mean that you have to wait until 68 before you start to receive your state pension.
Some people see this as loosing 3 years of the state pension that they were expecting.
For Example, if your birthday is 15/10/1978 you will now not be able to access your state pension until you reach 68, (source www.direct.go.uk) this change affects every man and woman that is expecting to retire after 2024.
The state pension is 100 years old and was created by the "Peoples Budget" passed in 1909, under Lloyds George's government at the time.
The UK population today is now ageing with 19.8M people being aged over 50. It is estimated by 2031 3.8% of the population will be aged over 85 (source ONS, www.statistics.gov.uk). Every person that has paid in to the National Insurance scheme during their working life, aged over 65 will be being paid a state pension.
The state pension scheme is actually divided in to two parts, firstly the Basic State Pension, this (in this tax year) is £90.70 per week. Secondly, there is the State Second Pension, or S2P, previously, this was known as SERPS (State Earnings Related Pension Scheme).
The amount of S2P you will receive depends on your earnings from employment throughout your lifetime.
Did you know that it is possible to build a tax free cash lump sum by redirecting your S2P pension to personal pension of your choice?
It is possible to divert a payment, now, in lieu of receiving your S2P pension in to a pension scheme of your choice. This money is then invested and anytime from age 55 onwards you can access up to 25% as a tax free lump sum.
s2pexplained.co.uk is a new a service provided by Stirling House Independent Financial Advisers, a national IFA firm to help individuals consider their retirement income requirements and specifically to advise them on the benefits and potential advantages and disadvantages of contracting out of the state second pension scheme.
Craig Fookes, Stirling House Independent Financial Adviser, and responsible for the s2pexplained.co.uk and s2padvice.co.uk websites, says, "it is important for us all to be now aware that the state pension age is increasing. Our clients tell us that they like to have investment control of as much of their money as possible and re-directing part of their state pension is an extension of that."
"Our service; reviews client's requirements and results in the provision of advice. For many people happy to consider their state pension planning as part of their own financial planning - contracting-out is an attractive proposition. We have seen rebates in excess of £2000 per year for client with earnings of £35000 per annum and in excess of £800 per year for clients with earnings of around £10000. These funds can be held within a pension scheme of the individual's choice and accessed from 55 onwards. Many clients we have spoken to are very unhappy that they have not been made aware that the state pension age has a) increased b) that they could access part of the funds within their own arrangements."
"As Stirling House IFAs are independent financial advisers we are able to advise on the most appropriate pension to match individuals requirements, presently are customers are concerned about performance and financial security. We have access to products that offer very low risk funds including cash, and also providers that are mutual firms, similar to building societies, that do not have shares or shareholders and more secure in the current climate. We will provide all of our clients with individually tailored advice on their requirements."
S2padvice.co.uk is available to all, and offers a no-obligation and free initial independent review of your circumstances with an Independent Financial Adviser. Should you proceed with contracting-out a £25.00 upfront fee is payable. Stirling House IFAs are authorised and regulated by the FSA No. 413234.
Stirling House Independent Financial Advisers and Stirling House IFAs are the marketing terms used to describe the representatives of Stirling House Financial Services Limited. Stirling House Financial Services Limited is authorised and regulated by the Financial Services Authority No. 413234. Registered Office: Willow End Park, Blackmore Park Road, Malvern, WR13 6NN. Registered in England No. 5112844
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