Everyone in Britain will be paid the state pension when they retire, right? Wrong. Financial experts say this is one of the biggest money myths
around. The vast majority of pensioners do qualify for the payments - £84.25 a week until April 2007, £87.30 a week from then on. But a small but worrying number may be getting as little as £21.06 a week from the Government. Some may be paid nothing at all.
‘Confusion over the way the state pension is calculated and paid seems to get worse every year, not least because pension rules always seem to be changing,’ says Philippa Gee, pensions and investment expert at independent financial adviser Torquil Clark.
And there can be no worse shock than to find out too late that you are in the minority of people who won’t qualify for your full pension when the time comes. To try and clear up the confusion here is our simple, independently researched and written guide to the state pension. It’s got all the background you need to find out what you can expect, when you will be paid it and what you can do if it won’t be enough for your needs.
'Work keeping retirees young'
Continuing to work is keeping older Britons feeling youthful, a new report claims.
Life and pensions
company Friends Provident says that rather than taking up extreme sports such as skydiving to recapture their youth, retired people aged between 52 and 60 are continuing to work - but only the work they want to do.
A poll carried out for the firm by the Social Issues Research Centre discovered that 24 per cent of people in this age group feel they have the freedom to do what they want to do.
Around 22 per cent said they work for social contact and could now enjoy work without the stress and responsibility while 31 per cent said they plan to spend a large proportion of their time working.
Head of pensions marketing at Friends Provident Jeremy Ward commented: "Far from being a chore and a necessity, work is a major component of their identity and self worth.
"However, it looks like it is going to be a different story for the current generation. If they want to enjoy the same sort of freedom and choices they need to start planning for their future now."
Around six in ten women in the UK are not contributing to a pension fund, HSBC research shows.
Limited comments “Many employers are looking at revising pension plans
to take into account a later retirement age, thus encouraging older employees to work longer.”
Neil Simpson is a former Personal Finance Journalist of the Year and writes regularly on pensions, property and investment issues for the Mail on Sunday, City AM newspaper and many other publications.