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State Pension
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I am due to get my State Pension in November. Do Ineed to doanything or is it an automatic thing. I know it's a way off yet but I like to know what I need to do.
Answers
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You can get a State pension forecast online: https://secu
14:15 Sat 25th Jan 2014
You don't need to do anything - they should contact you asking details of where to pay it and giving you the option to defer it. They will also tell you your payment days - your first payment will be at some random date ie, not necessarily on your retirement day, for any period up to 4 weeks; further payments will be made every 4 weeks following that date.
They should contact you before, then you'll have a reference number to proceed online or by phone. My OH didn't have this so phoned after his birthday. He failed the security questions (name, address, dob, NI number - eh?) but they wouldn't say which information was wrong (it wasn't) due to data protection! Now you've set me off, Tilly!
Re Winter Fuel Allowance; I understand there is a cut off date which I believe to be September, which means that you won't get it this year. Do check this though.
My birthday is in June and I got £200 the first year I was eligible, on the other hand, the OH's birthday is in December and she didn't receive the WFA until the following year when my allowance was cut to £100.
My birthday is in June and I got £200 the first year I was eligible, on the other hand, the OH's birthday is in December and she didn't receive the WFA until the following year when my allowance was cut to £100.
Tilly, if I can offer some points from my own experience:
apply now for your NI exemption status - as soon as you reach retirement age, you give that to your employer so they no longer deduct NI from you, it can be quite a saving.
Get your pension forecast, but if by any chance you don't need to claim it yet, you can defer it, and they pay you an extra 10.4% p.a. in respect of the years you don't claim (e.g. if you defer 5 years, you get 50% extra per week, with the option to take part of that as a lump sum at the time you decide to claim). Although there is an argument that cash in your hand is better value, your pension can push up your annual income meaning that your employed pay is really wallopped for tax - mine was as they apply your allowances to your work pay, so you still get your pension free of tax.
It took quite a while to sort out the forecast, some weeks, so it's worth asking now and considering your options. I had a spreadsheet of "what ifs" before I decided what to do.
apply now for your NI exemption status - as soon as you reach retirement age, you give that to your employer so they no longer deduct NI from you, it can be quite a saving.
Get your pension forecast, but if by any chance you don't need to claim it yet, you can defer it, and they pay you an extra 10.4% p.a. in respect of the years you don't claim (e.g. if you defer 5 years, you get 50% extra per week, with the option to take part of that as a lump sum at the time you decide to claim). Although there is an argument that cash in your hand is better value, your pension can push up your annual income meaning that your employed pay is really wallopped for tax - mine was as they apply your allowances to your work pay, so you still get your pension free of tax.
It took quite a while to sort out the forecast, some weeks, so it's worth asking now and considering your options. I had a spreadsheet of "what ifs" before I decided what to do.
You can get a State pension forecast online:
https:/
Although you should get a letter telling you how to claim, you will have to make a claim as the pension is not paid automatically. You can apply by post, phone or online. All the details are here:
https:/
Winter Fuel Allowance is paid automatically once you are in receipt of State pension. As has been said you will not get it for 2014-15 as you have to be of pension able age some time in September.
If you continue to work after you receive your pension bear in mind that although NI is no longer payable, the State pension forms part of your taxable income. The pension is paid free of tax but if your pension and earnings combined exceed the income tax personal allowance (£10,000 for 2014-15) tax will be payable on amounts above this level. Your PAYE code will be adjusted to account for this.
https:/
Although you should get a letter telling you how to claim, you will have to make a claim as the pension is not paid automatically. You can apply by post, phone or online. All the details are here:
https:/
Winter Fuel Allowance is paid automatically once you are in receipt of State pension. As has been said you will not get it for 2014-15 as you have to be of pension able age some time in September.
If you continue to work after you receive your pension bear in mind that although NI is no longer payable, the State pension forms part of your taxable income. The pension is paid free of tax but if your pension and earnings combined exceed the income tax personal allowance (£10,000 for 2014-15) tax will be payable on amounts above this level. Your PAYE code will be adjusted to account for this.
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