State pension

Is there any extra cash I can claim?
You may be able to get extra money from the state, if you - or your partner - are aged 60 or over. The government has set a minimum level of income - known as the Minimum Income Guarantee - and if the money you have coming in does not reach this amount, it will be topped up.

This Minimum Income Guarantee is becoming part of the new Pension Credit (introduced in October 2003), which is designed to give pensioners a minimum level of income and to provide extra cash to those with small incomes from savings. From October 2003, every pensioner will be guaranteed a minimum income of £102.10 a week, or £155.80 a week for couples. In addition they will get a credit for any savings or pensions they have built up. To make a claim for the Minimum Income Guarantee you can call 0800 028 11 11.

What pension am I entitled to?
To find out your entitlement, call the State Pension Forecasting Team on 0845 300 0168. You can also write to them at: State Pension Forecasting Team, Room TB001, Tyneview Park, Whitley Road, Newcastle upon Tyne NE98 1BA

Can I leave the State Pension scheme and have a Private Pension instead?
You can't leave the basic State Pension, but in some circumstances you can decide to leave the State Second Pension this is known as 'contracting out'. If you decide to contract out of the State Second Pension there are two main options for you.

You can join a pension scheme run by your employer - this is also known as a Company Pension or Occupational Pension. You will pay lower National Insurance Contributions as a result.

You can join a Personal Pension or Stakeholder Pension. A rebate of National Insurance contributions, equivalent to the amount paid towards State Second Pension will be invested in your pension plan.

Before deciding to contract out of the Second State Pension, you should take advice. Speak to an Independent Financial Adviser (IFA) or a Specialist Pensions Adviser.