State pensions

As part of tax return discussions, forthcoming state pension changes may need to be considered.

We will see the current system replaced with the new State Pension from April 2016 and entitlement and contributions will need to be considered. 

The new State Pension will be for:

• men born on or after 6 April 1951, and
• women born on or after 6 April 1953

To be eligible an individual will require a minimum of 10 qualifying years to receive any State Pension from 6 April 2016. National Insurance contributions paid before 6 April 2016 will be recognised in the new system. 

State Pension top-up is available for people who are already receiving their pension or who will reach State Pension age before 6 April 2016.  This allows those without the required contributions a chance to make voluntary contributions - Class 3 NIC. The Pensions Act 2014 introduced Class 3A contributions and set two entitlement conditions:

• contributors must have entitlement to a UK State Pension;
• contributors must reach State Pension age before 6 April 2016.

Those eligible will be able to pay Class 3A contributions from 12 October 2015 and 5 April 2017.