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How Do State Pensions Work?

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When you get old, the Government gives you a little bit of money each week to help you live a decent life. Nothing luxury just the basics. This is why it’s important that you get your own retirement plan in place, so you’re living GOOD when you’re old.

You’ll get your state pension when you reach the “retirement age” set by the Government. The amount you get as a pension is calculated from a mix of two things:

  • How long you’ve been contributing to your pension
  • The private pension plans that you already have

You’ve got to put money into your pension for at least 10 years to get any pension from the Government.

To get a full state pension you need to be putting in money for at least 35 years.

It’s mad because most people don’t know this, and end up really struggling when they are old.

The basic state pension for 2019 to 2020 is £129.20 a week. Not the most money in the world at all, but you can top it up by just over 10% with Pension Credit.

Quick Summary

So being blunt, don’t rely on getting a state pension. Plan for your retirement and make sure that YOU are all good when you are old.

Don’t leave it to anyone else to give you their crumbs.

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