A state pension is a payment people receive from the state when they reach pensionable age, which is currently set at 65 for both men and women.
The amount of state pension you get depends on how many qualifying years of national insurance you have built up.
Currently a single person can get up to £102.15 basic pension per week, although some will get less than this.
For most people a state pension represents a substantial fall in living standards. This is why it is recommended that you supplement your state pension with a personal pension scheme either through your employer or independently.
If you are thinking of reviewing your retirement planning then first thing you should do is work out the value of your current retirement savings. Start by getting pension forecasts from your state pension and any company pension scheme you belong to.
- For more about state pension forecasts, visit www.direct.gov.uk.
Then think about your outgoings at retirement age; Will you have dependents? Will you still be paying off your mortgage? What sort of lifestyle would like to have? Do you have any savings?
And finally calculate if your projected pension will meet these financial needs. If the answer is no, then contact our advisors today to discuss your options.