Current full rates of the Basic
State Pension
|
The
current full rate of the Basic State Pension
before tax is £4,027.40
per year for a single person.
The current full rate of the Basic
State Pension is
before tax is £6,437.60 per year for a married
person.
The rate of tax you pay on the Basic State Pension will be
different for different individuals and will depend on what other
taxable income is being received.
If both husband and wife have a history of making
NI contributions then you may be entitled to more. If for example
both husband and wife have the full number of qualifying years then
they will be entitled to a full single persons BSP each, i.e. £4,027.40 or £8,054.80 as a combined income.
|
Increases to the Basic
State Pension
|
The Basic State
Pension is increased in April each year by the change in the level
of price inflation. The exact measure used is the change in the
Retail Price Index over the year to the previous September.
Details on the Retail Price Index (RPI) including how it is
calculated and what the latest and past figures have been can be
found on the governments
statistics website.
In some years the Basic State Pension has
been increased by more than the rise in the RPI as a result of
pressure from some pensioner organisations. The current low levels
of price inflation would have resulted in increases to the basic
state pension of very small amounts in £ note terms. Arguably these
small increases represent the fact that prices have remained
relatively stable and therefore pensions need a consequently smaller
increase to maintain their real value however in recent years a
minimum increase fixed in £ note terms has been implemented.
|
|
|
|
|
If you have a pensions
related question then please let us
know.
If it's something other people
would find useful then we will post an answer in our Frequently Asked Question
(FAQ) area.
|
|
|
Use our online calculator
to get an estimate of your basic state pension.
Its free and
simple to use you can even include it on your own website!
|
|
|
Get the FREE Pension calculators from Essential Pensions.
No money, no
registration, just include one line of HTML in your web page.
|
|
|
Read the guide to
investment in the pensions guide. It explains what you need to
think about before investing for your retirement.
|
|
