It’s reassuring to know that the state pension can give you an income after you retire.  Even though it’s a relatively small sum of money, it can be useful in topping up your income from a private pension – or paying for a few luxuries!

We live in a country where everyone’s entitled to a certain quality of life.  Achieving the quality of life you’d like depends on having the right level of money coming in to meet your needs as you grow older.

How much could I get from a state pension?

The state pension may give you an income, but it’s unlikely to match your current income. The current full state pension for a single person is less than £450 per month – that’s not much.  The level of state pension income also depends on having paid enough National Insurance contributions over a number of years.

The good news is that, from April 2011, the basic state pension will rise each year by at least 2.5%.  That’s why, as soon as you possibly can, you should start putting money into a pension plan to top up the income you’ll get after you retire.  You can find out more about this by asking an independent financial adviser (IFA) to help you get a state pension forecast. 

Questions you might like to ask an IFA…

How much will I get from the state pension, how do I get a state pension forecast?

Will I get more, or less, from the state pension if I’m married or divorced?

If I take out a personal pension, what happens to my state pension?

If I’ve missed National Insurance payments, how can I qualify for a full state pension?