Financial Adviser Explains - The New State Pension (UK)

This video explains the New State Pension we have here in the UK. Here's what is covered:

00:00 Intro
01:11 What is it?
01:23 Who is entitled?
02:26 How much will you get?
03:27 How does it keep pace with inflation?
04:28 When will you get it?
05:15 How do you claim it?
05:47 How is it paid?
06:19 How to build a full entitlement?
07:03 Old state pension and contracting out
08:07 How do you topup?
08:53 Is it taxed?
09:58 Can you delay your state pension?
10:43 How do you get a forecast?
11:33 Can you rely on it?

Here's the links mentioned throughout the video for further reading:

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Hi there! My name is Tom Morgan, Founder & Financial Planner of Orca Wealth Ltd, welcome to my YouTube channel ‘That Finance Show’. I’m very glad to have you here because this channel gives me the opportunity to help people and share information with those who wouldn’t normally get it.

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#statepension #ukstatepension #financialadvisers

[kennztube]

Small point, it's not the government that funds the pension but we who pay all our working lives toward it. This isn't a hand out by benevolent leaders.

[kortyEdna]

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

[stuartscott]

At 06:35 you say that to obtain the full entitlement you need 35 qualifying years, however this is only true for people who joined the work force after April 2016. Most others who have worked before 2016 are on transitional rules which means they could need significantly more than 35. In my case I needed 39, so please check your individual forecast as the 35 year rule only applies to youngsters who were not working before 2016.

[umbertoyltp]

As a stumbleupon viewer from the Netherlands I was very well informed by this video about the UK system. Thank you very much!

[BryanMcCann-ksjh]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[BennettElizabth]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[keithclunk]

DEFERRING your state pension - If you defer for one year to gain the 5.8% increase in payments it will take 17 YEARS until you reach the break-even point where you begin to be better off. That will be during your early to mid eighties! If you do not need your state pension immediately it is better to claim it anyway and put the money into an ISA or SIPP until you need it.

[michaelcheng]

its very insightful and perfect brief for understanding StatePension! Thank you!:D

[blessingpaul]

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.

[anthonywatkins]

This is a superb video, very well presented, clear and concise explanation on the state pension, very well done and thank you. 👌👍

[philflip]

A very clear and simple explanation, thanks.

[kharmalade]

One of the great things about the state pension system is that there are 13 payouts in each 12 months so there is always one glorious month when you appear to get double bubble (usually November or December). OK, I know it's an illusion but it creates a lovely feeling of being on the winning side.

[brianreynolds]

Great video though I’d like to add, and I think it’s important to mention that, you can receive your state pension weekly by requesting in the notes sections of the form that you would like to be paid weekly…even after you’ve started to receive on a monthly basis you can phone up and request to change to weekly payments…I too am paid on a Wednesday…Brian

[simonjonesptchester]

Interesting and informative video, as always; thanks, Tom!

[edward.abraham]

People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Differing investment approaches yielded disparate results. Guided by a financial advisor.

[davidplanet]

Thanks Tom. Subscribed. It’s worth people noting that Class 1 NI contributions are paid per “Pay period”, either weekly if you’re paid weekly, or monthly if you’re paid monthly. Pay isn’t aggregated over 1 year like income tax is. A period qualifies if your pay (in the period) exceeds the “lower earnings limit”. If the pay (in the period) exceeds the “lower earnings limit” but is below the “primary threshold” you are “credited” with national insurance contributions but you don’t pay any national insurance for that period. The year qualifies if the total qualifying pay exceeds the 52 times the weekly “lower earnings limit”. Someone close to retirement could therefore work occasional, part time hours, and earn just enough to make a qualifying year without paying any NI.

[oxymogurl]

Really appreciate the succinct explanation, and helpful links...👌

[ShantiTrish]

It is interesting that many people on a small income, have no means of saving money for their retirement . Yes l found this useful Thankyou for taking the time to load this video .

[edsteelefox]

THANKS TOM!

This fantastically clear video couldn’t have come on a better day for me having spent a solid hour on the phone to HMRC and the Future Pension Centre trying to work out if I should repay my NIC 2 self-employment years (the answer to which was of course).

If anyone else is in this position, look into it ASAP as a whole whack of past years will move out of reach at the end of July (and the wait time on the phone will probably rocket up towards the deadline).

[michaelgoode]

Just need to point out that the government doesn't actually fund anything. This is state money which the government of the day administers. It's funded primarily by tax receipts and other state income.