It is essential that you plan your retirement income extensively before you decide to stop working. By pursuing this course of action, you can determine how to cover your care costs in later life. If you do not have sufficient funds to cover these costs, the government can use assets such as your house to do so, meaning that you cannot pass said assets onto your loved ones when you die.
Planning retirement income
You will need to look several areas to determine how much money you will need during retirement. This includes any private pensions that you may have contributed to and workplace pensions which, unless you are self-employed, your employer is now legally obligated to enrol you into. Also once you reach state pension age, you will also be allowed to receive the basic state pension.
Basic state pension
Currently, you can claim £119.30 per week in basic state pension funds and also apply for an additional state pension. But if you reached stage pension age on or after 6th April 2016, you will instead receive the new state pension of £155.65 per week. Either way, you will have to actively claim your state pension. Four months before you reach state pension age, you will receive a letter from the British government informing you of how to submit your claim.
There are four ways to claim your state pension. You can do so via phone, at 0800 731 7898, on weekdays between 8am and 6pm, except public holidays. You can claim from abroad (including the Channel Islands) or do so via a state pension claim form, which you will need to submit to your local pension centre. Alternatively, you can claim online, which is far more convenient, especially for busy professionals. Below Prestige Tax and Trust Services explains how to claim your state pension online.
Claiming online is incredibly easy. It is important to note that you can still submit a digital claim even if you have not received a letter from the Pension Service inviting you to do so, or have chosen to defer your state pension. Head to the government’s online state pension claim page and answer several questions, to determine whether you can complete your application now.
If you can complete your application, you will need several pieces of information. This includes your current address, the addresses and dates for your last two years of employment, national insurance number, bank account details and Government Gateway user ID, password and activation code. You are first required to sign up to Government Gateway, in order to use e-government services.
If you have ever had a partner, you will need extra information including the dates of your marriage/civil partnership, divorce/civil partnership dissolution and/or your partner’s death. You will also need your partner’s details e.g. national insurance number, details of any benefits you or your partner received. If you have lived abroad, you will also need the dates and social security numbers.
Prestige Tax and Trust Services
However, the state pension does provide you with enough income to cover care costs. It is therefore essential that if you want to shield your assets from these expenses, you enlist expert aid. The Prestige Tax and Services team has the experienced needed to advise you on cost of care matters.