awesomescopeHave you been thinking about your future? Figuring out what money you’d be able to retire on? Maybe your wondering what exactly you’re paying your National Insurance contributions for every year? Well, the new state pension that many of us will get is £179.60 a week. What does that work out at for your family situation? Have you paid enough NI contributions to get the full amount? What does that equal during a full year? Let’s explore what 179.60 x 52 is and if you could survive on the new state pension.
What Is The New State Pension?
The new state pension is what you’ll be entitled to when you reach retirement age, if you’re a man born on or after 6 April 1951 or a woman born on or after 6 April 1953. The amount you get changes depending on your National Insurance record however you’ll need a minimum of 10 years of NI contributions to get any state pension. No later than two months before you reach state pension age, you should receive a letter telling you how to claim it.
How Much Will You Get Each Week?
The new state pension, if you are entitled to the full amount, is £179.60 a week. It is usually paid every four weeks and the day of the week it lands in your bank account varies depending on your National Insurance number. The amount you get every four weeks works out at £718.40. The amount you will get annually is 179.60 x 52. This works out at £9339.20. Could you live on that? If it doesn’t seem like a lot, you might consider getting your own personal pension.
Setting Up A Personal Pension
Of course, there are people in employment who take advantage of the pension scheme with their employer. When they pay in, the employer pays in too. For these of us who are self employed or freelance, a personal pension might not be at the top of our ‘to do’ list. However the sooner you start paying into it, the better. Start paying a little bit in every month when you are younger and you’ll build up a decent amount over time. Wait until you’re older and you’ll have less years until retirement age and need to put more away each month in order to meet your goals.
If you’re looking at setting up your own pension, take a look at Penfold. I love the fact they offer a sustainable pension where your money is invested in ethical companies. If you like the sound of them, use my link and once you make your first deposit we’ll both get £25.
In conclusion, 179.60 x 52 is a good chunk of change. However many of us have aspirational retirement years to plan with incredible bucket lists to put money towards. Consider your pension options now and you’ll be able to plan for your twilight years in style!
