Enable’s IFA’s in Bishops Stortford and Saffron Walden are keen to make sure their clients stay ahead of any changes in the financial landscape. Another of the elements of the new state pension changes introduced in April, requires that workers must have at least 35 years of NI contributions. This is five years more than under the previous system if you are to receive the full payment, which currently stands at £155.65 a week.
One pension provider Aegon recently conducted some research that revealed that eight out of ten Britons don’t know how many years of National Insurance (NI) contributions are needed to qualify for the full welfare payment. In addition a third of people had no idea that a career break could harm their state pension payments. Six in 10 women have a taken a career break of at least a year at some point in their life
Kate Smith, head of pensions at Aegon UK, said: “The fact that 80 per cent of people don’t understand the potential implications of career breaks on their state pension just highlights the sheer scale of the task ahead to properly educate people about the new state pension. Ms Smith added: “To ensure no-one loses out, every individual in the UK should be contacted and provided with an estimate of the state pension they are on target to receive. “This approach will not only force people to engage with their pension more often, it may also prompt them to review their private provision and in doing so, take stock on whether they are on course for the retirement they aspire to.”
Issued by: Enable Independent Financial Life Planners • 25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 – Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE