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Financial Tips for the over 50s

Financial Tips for the over 50s

We can each choose when to retire rather than being retired by our employer, however, the age at which we get a state pension, for both men and women, will be 66 if we reach this age after April 2020.

Currently, the full basic pension is £110.15 per week for a qualifying individual and £176.15 for a couple where only one qualifies. It isn’t means tested, so if you have enough qualifying years of NI payments, then that is what you will get. If you have insufficient NI payment years then it is possible to make NI payments for missed years.

There is a planned radical change in pension payments and a planned flat rate of £155 per person anticipated from April 2016.

Pension credits are available to those pensioners on low income. Low income is defined as under £145.40 per week for an individual and £222.05 for couples.

For those that are still in employment at retirement age it may be worth considering deferring your pension. Every 5 weeks of deferring your pension will increase your pension by 1%. Worth considering but only if you can afford to.

Before accepting the annuity from your private pension provider, shop around to see if you can get a better deal elsewhere.

Make sure that you are receiving your winter fuel payment of £300 for the over 80’s and £200 if you are under 80 but over retirement age. You should also get an additional £25 for every 7 consecutive days of below freezing temperature if you are in receipt of pension credits.

Don’t forget to take advantage of free benefits. These include a bus pass at retirement age, free TV license at 75 (even if someone under 75 lives at the same address), and free prescriptions for the over 60s.