Frequently asked questions
Below are answers to questions answered in a Twitter Q&A event by @prospectpension
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.
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.
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)
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.
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.
National Insurance Credits still exist for carers. Worth less though under the new system with no State Second Pension.
Yes. We have a briefing note on voluntary (Class 3) contributions to improve NI record.
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.
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.