State pension income is designed to provide people with stable income in retirement, with other benefits helping those who are in financial difficulties. Despite the support available, new research shows many families are not generating much income from the support as a proportion of how much money people have overall.
Today, the Government released their family resources survey (FRS) for the financial year 2019 to 2020, providing information on income and circumstances of UK households.
The findings are the result of 19,000 households being interviewed and the data covers the period in which the UK was impacted by the pandemic.
In analysing the results, Hargreaves Lansdowne highlighted State support, including state pensions, made up 13p in every pound families had to live on.
This dropped steadily from 14p a year earlier and 15p a year before that.
READ MORE: State pension age is changing – how to check your state pension age
To be eligible for the new state pension, claimants will need at least 10 years of National Insurance contributions under their belt.
To receive the full payment of £175.60 per week, claimants will need to have collected at least 35 years of National Insurance contributions.
Where a person may be on a low income in retirement, they may be able to receive support from pension credit.
Pension credit gives claimants extra money to help with their living costs if they’re over state pension age and on a low income.
To be eligible, claimants must live in England, Scotland or Wales and have reached State Pension age, which is currently sitting at 66.
Claims for pension credit can be made up to four months before a person reaches their state pension age.
Additionally, claims can be made at any time after reaching state pension age but applications can only be backdated by up to three months.
When applying, which can be done online over the phone or through the post, claimants will need to have the following information ready:
- They’re National Insurance number
- Information about any income, savings and investments they have
- Information about their income, savings and investments on the date they want to backdate their application to
Do you have a money dilemma which you’d like a financial expert’s opinion on? If you would like to ask one of our finance experts a question, please email your query to [email protected]