What is the State Pension?
Feb 21, 2024
So what is the state pension? Basically, it’s money the government (the posh man with the wacky hair) gives you when you hit retirement age (currently 66).
In theory it’s a way of rewarding you for a life of work, so you have money in the bank when you’re old and grey instead of working forever until you’re dead ⚰️.
Here’s the good news, everyone is entitled to it - YAY 🎉 . However, it’s not really free. It’s based on how much you pay in National Insurance Contributions across your working life. You know that horrible moment when you look at the tax on your pay slip and you see that other bit called, ‘N.I. contributions,’ and think, “WAIT A MINUTE, THERE’S MORE TAX?!” 😡. This is actually money that’s going towards your state pension. To qualify at all, you need to work for at least 10 years, and to get the full amount available, you need to work for 35!!
After 35 years of all your labour and toil guess how much you get…? 🥁
£203.85 per week. Not bad, but not great. I guess it depends on how many cruises you’re planning on going on when you retire.
That’s not all though. The companies that you work for throughout your life have probably been contributing to other pensions for you as well, not to mention any private pensions you have on top of that.
If all of this seems confusing, don’t despair - Penny can help!
Penny makes it simple to see all your previous pensions in one easy to navigate pension plan on a lovely app. This way you won’t have to rely on His Majesty in order to pay for your groceries when you’re 105 and still going strong 🏄