Pensions reform

Frequently asked questions

Current Pensioners and people who will reach State Pension Age before 6 April 2010 (men born before 6 April 1945 and women born before 6 April 1950)

I am due to reach State Pension Age before 6 April 2010; will the changes affect how much State Pension I receive?
If you are already in receipt of State Pension, or are due to reach State Pension age before 6 April 2010 you will not be affected by the changes to the way State Pensions are calculated. You will be entitled to claim State Pension under the current system from age 65 for men, and age 60 for women. Earnings uprating of basic State Pension will be introduced for all pensioners from 2012 at the earliest.

I reach State Pension age before 6 April 2010 but will my State Pension be worked-out under the new rules if I put off claiming it until after 6 April 2010?
No. The new rules only apply to people who reach State Pension age on or after 6 April 2010. If you put off (defer) claiming your pension you may be able to get a higher amount or a lump sum when you claim it later.

I have already reached State Pension age. Will I be affected by Personal Accounts?
If you are over State Pension age but under age 75 and working and want to save then you can ask your employer to enrol you into a scheme. If you chose to enrol, you will also get a pension contribution from your employer.

I am a women and will be 60 before 6 April 2010. Will I still be able to claim my State Pension when I am 60?
Yes. As you will be 60 before 6 April 2010 you will still be able to claim your State Pension from age 60.

I heard that I can’t get any basic State Pension unless I have at least 25% of the contributions needed for the full amount because I will be reaching State Pension age before 6 April 2010. Is this correct?
Yes. If you reach State Pension age before 6 April 2010 your State Pension will be worked out according to the current rules.

I am currently in receipt of Income Support and will be 60 years old before 6 April 2010. Will the date I am entitled to receive my State Pension change?
The age at which you are entitled to State Pension will not change. Men and women reaching State Pension age on or before 6 April 2010 will be entitled to claim State Pension under the current rules; 65 years for men and 60 years for women. You can also claim Pension Credit when you are 60.

I am currently getting an Adult Dependency Increase (ADI). Will this stop on 6 April 2010?
If you are already getting an ADI when the rules change on 6 April 2010, you will be able to keep it for a time under transitional rules. It will stop when the qualifying conditions are no longer satisfied (for example, because the person you are getting the ADI for starts to get their own State Pension) or, at the latest, in 2020.

I am married and currently getting an Adult Dependency Increase (ADI). Will I be worse off when ADIs stop altogether in 2020?
Around three quarters of the ADIs in payment in April 2010 will have stopped before 2020, for example, because the person the ADI is for starts to get their own State Pension. If this is not the case for you, you will be told about any other benefits you may be able to get when your ADI stops in 2020.

I am a married woman. I’m already over State Pension age but haven’t paid enough contributions to get a pension. My husband doesn’t intend to claim his pension until he’s 70. When can I claim a pension using his contributions?
At the moment you can’t claim your pension until he claims his, but the rules are changing from 6 April 2010. If he’s 65 (State Pension age) before then, you can claim your pension from 6 April 2010. If he’s 65 on or after 6 April 2010, you can claim when he reaches his State Pension age regardless of whether he chooses to claim his State Pension or not.

Why won’t my pension be up rated in line with earnings until 2012 at the earliest?
The change is timed to coincide with other economic factors associated with the overall package of Pensions Reform. However if you are on a low income you may be able to get Pension Credit. The standard minimum guarantee in Pension Credit is already uprated in line with earnings and this will continue.

Can I pay additional National Insurance contributions to enhance my basic State Pension?
You may be able to purchase additional contributions under current rules.

For further information please visit the HM Revenue & Customs website

There is also new legislation in the Pensions Act 2008 which allows certain people to buy up to an additional six years of voluntary Class 3 National Insurance Contributions. This is over and above those permitted under the current time limits. The new rules come into effect from 6 April 2009. The new measure applies to individuals who reach State Pension age between 6 April 2008 and 5 April 2015 and already have 20 qualifying years (including any full tax years of Home Responsibilities Protection). Individuals who reach State Pension age between 6 April 2008 and 5 April 2010 must have at least one qualifying year from paid or treated as paid National Insurance contributions.

For more information on this important change please see:

State Pension - Paying Class 3 National Insurance contributions

Additional Voluntary National Insurance contribution factsheets

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Future Pensioners – people reaching State Pension age on or after 6 April 2010 (men born on or after 6 April 1945 and women born on or after 6 April 1950)

I am a woman who will be 60 after 6 April 2010. When can I get my State Pension?
State Pension age for women will increase in steps from 60 to 65 between 2010 and 2020. From 2020 it will be the same as men's State Pension age. State Pension age will then increase gradually from 65 to 68 between 2024 and 2046. You can find out your State Pension age by using the State Pension age calculator.

I am due to retire soon after 2012. Will I be enrolled into a Personal Account?
If your employer provides a pension scheme you may be enrolled into that scheme or into a personal account. You will be able to opt out if you want to. You will be able to contribute to the personal account scheme until you are 75 if you continue working.

I have heard that State Pension Age is going to increase for both men and women. Is that right?
Yes that is correct. State Pension age for both men and women will rise gradually from 65 to 68 between 2024 and 2046. But before that women’s State Pension age is to increase to make it the same as men’s (65). This was legislated for in the 1995 Pensions Act. It means that State Pension age for women will increase gradually from 60 to 65 between 2010 and 2020.

Will I be entitled to Winter Fuel Payments?
Until 2009, the minimum age for getting a Winter Fuel payment is 60. Between 2010 and 2020 this will rise in steps to 65 for both men and women.

Why won’t my pension be up rated in line with earnings until 2012 at the earliest?
The change is timed to coincide with other economic factors associated with the overall package of Pensions Reform. However if you are on a low income you may be able to get Pension Credit. The standard minimum guarantee in Pension Credit is already uprated in line with earnings and this will continue.

I understand that Pensions Reform will change the number of qualifying years needed for a full State Pension. How will this affect me?
As you reach State Pension age on or after 6 April 2010 you will only need 30 qualifying years to get a full State Pension.

I have built up over 30 years paid contributions. Will I be able to get a refund?
Only people who have paid voluntary contributions on or after 25 May 2006, are due to reach State Pension age on or after 6 April 2010, and did not know about the State Pension changes when they paid the voluntary contributions, may be entitled to claim a refund. If you think that you are entitled to claim a refund you should write to HM Revenue & Customs.

People who have paid more than 30 years Class 1 or other non voluntary contributions are not entitled to claim a refund.

I will reach State Pension age after 6 April 2010. Do I still need to have credits / contributions for at least 25% of my working life to qualify for any basic State Pension?
No. Both men and women reaching State Pension age from 6 April 2010 will need 30 years qualifying years (rather than 39 for women and 44 for men as now) for a full basic State Pension. If you do not have the full 30 years of paid or credited contributions to get a full State Pension, each year you do have will give you one thirtieth of the full rate Basic State Pension.

I am a woman getting Jobseeker’s Allowance and will be 60 years old after 6 April 2010. Will I still receive my State Pension (and be able to get Pension Credit) when I am 60?
No, you will not be entitled to your State Pension (nor be able to claim Pension Credit) when you are 60. State Pension age for women born on or after 6 April 1950 will rise in steps from 60 to 65 between 2010 and 2020. (This is also the age at which people can claim Pension Credit). It will rise again - for both men and women - from 65 to 68 between 2024 and 2046. You can find out when you will reach State Pension age by using the State Pension age calculator. Benefits such as Jobseeker’s Allowance will be available until the new State Pension age.

My wife and I are in receipt of Incapacity Benefit. I have heard that State Pension age is increasing and that we will be affected because we are both due to reach the current State Pension age after 6 April 2010. Is this correct?
Yes, State Pension age will rise from 60 to 65 years old for women between 2010 and 2020 and then rise gradually to 68 years old for both men and women between 2024 and 2046. Benefits such as Incapacity Benefit or Jobseeker's Allowance will continue to be available until the new State Pension age. You can find out when each of you will reach State Pension age by using the State Pension age calculator.

I am due to reach State Pension age in August 2011. My wife will be 50 years old (in 2011). She has always been financially dependent upon me. Will I be entitled to Adult Dependency Increase (ADI)?
No, you will not be eligible to ADI if you reach State Pension age after 6 April 2010, even if your wife is still financially dependent upon you and has no earnings. However, if you and your wife will be on low income you may be able to get Pension Credit.

I’m staying at home to look after the children. My husband is working. The Child Benefit is in his name. Will I get credits towards my pension?
No. The credits will go to the person who’s getting Child Benefit. As your husband is aready paying National Insurance contributions, the credits won’t improve his pension. You should think about changing your arrangements so that you’ll get the Child Benefit – and the new credits.

Although the new credits don’t start until 2010 you could get Home Responsibilities Protection before then if the Child Benefit is in your name. Home Responsibilities Protection is only given for full tax years so you’d need to have the Child Benefit in your name within three months of the start of a tax year to get it for that year.

Can I pay additional National Insurance contributions to enhance my basic State Pension?
You may be able to purchase additional contributions under current rules.

For further information please visit the HM Revenue & Customs website

There is also new legislation in the Pensions Act 2008 which allows certain people to buy up to an additional six years of voluntary Class 3 National Insurance Contributions. This is over and above those permitted under the current time limits. The new rules come into effect from 6 April 2009. The new measure applies to individuals who reach State Pension age between 6 April 2008 and 5 April 2015 and already have 20 qualifying years (including any full tax years of Home Responsibilities Protection). Individuals who reach State Pension age between 6 April 2008 and 5 April 2010 must have at least one qualifying year from paid or treated as paid National Insurance contributions.

For more information on this important change please see:

State Pension - Paying Class 3 National Insurance contributions

Additional Voluntary National Insurance contribution factsheets

Visit our glossary
for further explanation of the terms used on this page

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