New State Pension Reforms: Are You Eligible?

Piggy bank on Wedding table

Women’s entitlement to their State Pension has been under pension reforms over the past few years. The reformations to the pension include the age of entitlement and the quantity of National Insurance credits. In 2016 there will be more changes to women’s pensions.

The State Pension age has been reformed – it is no longer 60 years old for women. It has changed to 65 years old, and is slowly increasing until it is equal to the men’s pension age of 68. The age gap has been gradually closing since 2010, there are plans to raise the pension age further after 2018, which could rise above 68 years of age.

To find out what year you’ll be eligible for your State Pension click here.

On April 6th 2016 the government introduced a new State Pension system which affects those approaching State Pension Age (SPA). Instead of a double tier system it has changed to a single tier system which means to qualify you will need a minimum of 10 years on your National Insurance record, and 35 years for a full State Pension. The amount you get is proportionate to how many years on your National Insurance record between 10 and 34 qualifying years. The value of the new State Pension is around £155.65 per week.

If for example, you have gaps in your National Insurance record you may have the opportunity to pay Class 3 National Insurance contributions. This means you’ll be eligible for a higher State Pension. Those that are self-employed or live abroad will only be able to make Class 2 payments. As at present the new single tier scheme will not distinguish between basic and additional pension. The cost of the Class 2 and 3 contributions varies each year, currently the cost for 2015/16 is:

  • Class 3: £14.10 per week
  • Class 2: £2.80 per week

It is important however to know whether or not you would like to or should pay National Insurance Contributions. To view your National Insurance record statement click here.

Read more:

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By Ellie Bridger

About the author

Eleanor Bridger is a writer from Rayleigh, Essex who was born on 5th December 1995. She is in her second year of completing a BA honours degree in Creative Writing at the University of Winchester - where she also serves as CW Student Representative for her year.

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