Different rules apply depending on whether someone reaches State pension age (SPA) before or after 6 April 2016.
The new State pension is received by anyone reaching SPA age on or after 6 April 2016, and the full amount is £221.20 per week in 2024/25.
Individuals who had already reached SPA before 6 April 2016 are unaffected by the introduction of the new State pension.
For those reaching SPA after the new State pension was implemented, it completely replaces the previous system of State pensions including the basic State pension, State second pension (S2P) and the savings credit element of the State Pension Credit, as well as being set above the level of the guarantee credit.
As the UK has now left the EU there have been changes to rules regarding accrual of State pension whilst working abroad.
Where an individual works in the EU, they will pay NICs in the UK if they have a certificate from HMRC. A certificate can be applied for if the person is:
Working in the EU temporarily for up to 2 years
A multi-state worker working in the UK and one or more EU country
A civil servant working for the UK Government
Working onboard a vessel at sea, with a UK flag or
Working as flight or cabin crew where the airline’s home base is in the UK
There are different rules for those working in Iceland, Liechtenstein, Norway or Switzerland.
The Starting (or foundation amount)
Individuals who had not reached their SPA on 6 April 2016 had a starting amount calculated, also known as the ‘foundation amount’. This was ...
Shortened demo course. See details at foot of page.
...he Bank of England base rate.
For those who reach their SPA on or after 6 April 2016, it is still possible to defer taking the State pension. The increase rate has fallen to 5.8% for each full year (1% for each nine week period), though it will no longer be possible to take the deferred amount as a lump-sum payment. The minimum qualifying deferred period has also increased from five weeks to nine weeks, and it is no longer possible for a spouse or civil partner to inherit a deferred new State pension.
Anyone can defer their State pension; it is not conditional on living in the UK. Where someone normally lives outside the UK the amount they receive when they make a claim will depend on where they live.
Those that live in the EEA, Switzerland or a country that has a social security agreement with the UK (except New Zealand and Canada) are subject to the same rules as the UK.
Those that live in any other country will receive an extra State pension equal to the bigger of:
Their State pension when they reached State pension age or
Their State pension at the date they moved abroad
State Pension forecasts
State Pension forecasts are issued by the Government. These are useful to understand whether paying Class 3 NICs would be beneficial and useful for those who have been contracted-out in the past to understand the adjustment that’s been made for this.
Applications can be made online: www.gov.uk/check-state-pension.
State how the new State pension usually increases in payment.
Answer : Purchase course for answer
