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Frequently asked questions

Frequently asked questions

Below are answers to questions answered in a Twitter Q&A event by @prospectpension

How does the UK Government expenditure on state pensions compare internationally?

I know State Pension Age is going up - what will it be in the future?

One of our retired members would like to know what impact the reforms will have on her.

Will the new state pension system be more generous than the current system?

I'm 55 and been in work since 1979. At what age do I get state pension?

What impact will the state pension reforms have on women taking a career break to have a baby?

Can I increase my state pension if I don't have enough NI credits?

I am contracted out of state second pension. Will I have to pay higher NI contributions? How much and when?

Does having a v small private pension (a couple of years worth) from years ago affect the state pension?

How does the UK Government expenditure on state pensions compare internationally?

Not well. OECD figs show we are 20 out of 28 for long term spending. UK to spend 8.2% of GDP compared with average of 11.7%. Only Iceland, Australia, Mexico, NZ, USA, S Korea, Estonia & Canada lower. Also UK expenditure set to fall as a result of changes. And Treasury gets £6bn a year more through increased National Insurance.

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I know State Pension Age is going up - what will it be in the future?

Under current legislation SPA will increase to 66 in 2020, 67 in 2028 and 68 in 2046. But increases to SPA will be reviewed. Office for Budget Responsibility estimates that SPA will be 68 by 2036, 69 by 2049 and 70 by 2063 as a result of reviews.

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One of our retired members would like to know what impact the reforms will have on her.

Changes to state pensions will not affect people who reach State Pension Age before April 2016. However people who reach State Pension Age before April 2016 may be interested in Class 3A NICs (see https://t.co/NNIUMGpzD6)

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Will the new state pension system be more generous than the current system?

Overall no – no increase in planned expenditure and it's set to fall over the long term. Individually some may be better off, but these will be offset by those who would be worse off.

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I'm 55 and been in work since 1979. At what age do I get state pension?

You can take your state pension from your State Pension Age or you can choose to defer it and take more from a later date. This calculator will tell you what your State Pension Age is.

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What impact will the state pension reforms have on women taking a career break to have a baby?

National Insurance Credits still exist for carers. Worth less though under the new system with no State Second Pension.

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Can I increase my state pension if I don't have enough NI credits?

Yes. We have a briefing note on voluntary (Class 3) contributions to improve NI record.

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I am contracted out of state second pension. Will I have to pay higher NI contributions? How much and when?

Both you and your employer will have to pay higher, full rate NI; by April 2016 at the latest. You can see the difference in our calculator.

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Does having a v small private pension (a couple of years worth) from years ago affect the state pension?

Someone who has been in a private or occupational pension scheme that was "contracted out" of the State Second Pension. may find that they do not qualify for the full level of the single tier state pension But they will get no less than under current system and if making full NI contributions after April 2016 possibly more.

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Latest pensions documents


Prospect Response Civil Service DC Pensions Provider Consultation   info
Response to Cabinet Office's consultation on the appoint Legal & General as the sole provider for Civil Service's defined contribution pension schemes.

Prospect submission to Pension Freedoms inquiry   info
Submission to Work and Pensions Select Committee Inquiry into pension freedoms.

Prospect submission on defined contribution arrangements to NDA Pension Forum   info
Prospect submission on defined contribution arrangements to NDA Pension Forum

Pension Training Plan   info
Pension Training Plan 2018

Prospect submission to consultation on Retirement Outcomes Review   info
Prospect submission to consultation on FCA's interim report on Retirement Outcomes Review.