Whether you are coming up to retirement age or are at the early stages of planning for your retirement, you may be wondering whether your State Pension will provide a big enough income for a comfortable retirement. In many cases and even with the new rates, the State Pension is unlikely to provide a great enough income for a financially secure retirement.
It can however be a great top up to your other pension schemes. The New State Pension came into force in April 2016 and is applicable to those who are a:
- Man born on or after 6 April 1951
- Woman born on or after 6 April 1953
- And have at least 10 qualifying years on your National Insurance record
How Much is the New State Pension?
The amount of New State Pension you will receive will depend on the number of qualifying years you have on your National Insurance record, these can be consecutive or non-consecutive and include National Insurance Credits and voluntary National Insurance contributions.
At its fullest amount the New State Pension is £155.65 per week, rising to £159.55 on April 6 2017. Which while better than the basic State Pension (currently £119.30 a week, rising to £122.30 on April 6 2017), it is unlikely to be enough to rely on in your retirement.
If you are at the earlier stages of planning for your retirement it is important that the state pension is not relied upon as in the future it may not exist in the capacity it does today and even if it is still in existence when you reach retirement age, it will likely not be enough for a comfortable life in your later years.
Seeking pension advice from an independent financial adviser will help you to gain a clearer understanding of the different options available, help you calculate how much you will need and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.
Should you Have Another Pension?
As the State Pension is likely to be significantly less than your income it is advisable to have another pension plan in place to ensure you will be financially secure in your retirement. There are many options available and an independent financial adviser will be able to advise you on the best options for your personal circumstances and financial objectives.
When thinking about your retirement and how much income you will require from your pensions it is important to consider the type of retirement you want, such as if you want to travel or take up hobbies and also the day to day expenses such as food and household bills. Thinking about these factors at the beginning of your pension planning will give you a clearer understanding of the right type of pension for you.
If you are looking for independent pension advice in Lincolnshire and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.
The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincolnshire and across the East Midlands. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.
At Pensions.org we can help you find a registered financial adviser for pension advice in Lincolnshire and across the East Midlands. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.