McLean’s Financial Services

Your pension questions answered

Q: I am due to reach State Pension Age before 6 April 2010. Will the changes affect how much State Pension I receive?
A: If you are already in receipt of State Pension, or are due to reach State Pension age before 6 April 2010, you will not be affected by the changes to the way State Pensions are calculated. You will be entitled to claim State Pension under the current system from age 65 for men, and age 60 for women. Earnings uprating of basic State Pension will be introduced for all pensioners from 2012 at the earliest.

Q: I reach State Pension age before 6 April 2010 but will my State Pension be worked out under the new rules if I put off claiming it until after 6 April 2010?
A: No. The new rules apply only to people who reach State Pension age on or after 6 April 2010. If you put off (defer) claiming your pension, you may be able to get a higher amount or a lump sum when you claim it later.

Q: I have already reached State Pension age. Will I be affected by Personal Accounts?
A: If you are over State Pension age but under age 75 and working and want to save, then you can ask your employer to enrol you into a scheme. If you chose to enrol, you will also get a pension contribution from your employer.

Q: I am a woman and will be 60 before 6 April 2010. Will I still be able to claim my State Pension when I am 60?
A: Yes. As you will be 60 before 6 April 2010, you will still be able to claim your State Pension from age 60.

Q: I heard that I can’t get any basic State Pension unless I have at least 25 per cent of the contributions needed for the full amount because I will be reaching State Pension age before 6 April 2010. Is this correct?
A: Yes. If you reach State Pension age before 6 April 2010 your State Pension will be worked out according to the current rules.

Q: I am currently getting an Adult Dependency Increase (ADI). Will this stop on 6 April 2010?
A: If you are already getting an ADI when the rules change on 6 April 2010, you will be able to keep it for a time under transitional rules. It will stop when the qualifying conditions are no longer satisfied (for example, because the person you are getting the ADI for starts to get their own State Pension) or, at the latest, in 2020.

Q: I am married and currently getting an Adult Dependency Increase (ADI). Will I be worse off when ADIs stop altogether in 2020?
A: Around three quarters of the ADIs in payment in April 2010 will have stopped before 2020, for example, because the person the ADI is for starts to get their own State Pension. If this is not the case for you, you will be told about any other benefits you may be able to get when your ADI stops in 2020.

Q: I am a married woman. I’m already over State Pension age but haven’t paid enough contributions to get a pension. My husband doesn’t intend to claim his pension until he’s 70. When can I claim a pension using his contributions?
A: At the moment you can’t claim your pension until he claims his, but the rules are changing from 6 April 2010. If he’s 65 (State Pension age) before then, you can claim your pension from 6 April 2010. If he’s 65 on or after 6 April 2010, you can claim when he reaches his State Pension age regardless of whether he chooses to claim his State Pension or not.

Q: Why won’t my pension be uprated in line with earnings until 2012 at the earliest?
A: The change is timed to coincide with other economic factors associated with the overall package of Pensions Reform. However, if you are on a low income you may be able to get Pension Credit. The standard minimum guarantee in Pension Credit is already uprated in line with earnings and this will continue.

For more information or to discuss anything in this article feel free to contact Doug McLean via email or phone.