This woman increased her weekly State Pension to £300. Here’s how to accomplish it.
The STATE PENSION is too little for most people, but Sandra Wrench took advantage of her extensive understanding of the plan to more than double her annual income to more than £16,000.
Many people believe they must begin taking their State Pension at the age of 66, but if you wait until later, you may be able to get a lot more money when you finally do. So, should you postpone your retirement?
The SIPP has a monthly fee of £10* plus a £9.99 service plan fee. Unlike other types of pensions, your fees do not increase in tandem with the value of your pension. You’re covered for several accounts, so why not take advantage of the free Stocks & Shares ISA? It’s completely free to join and quit.
Invest £100 or more in a SIPP. Choose from a variety of ready-made funds, each with a varying level of risk to meet your needs; get up to 20% tax relief on your contributions as a basic-rate UK taxpayer; and take advantage of an easy-to-use online account.
Pension deferral entails deferring the age at which you begin receiving the State Pension in exchange for a higher income later in life.
You can even defer State Pension payments after you’ve started receiving them, but you can only do so once.
Sandra Wrench, 69, of Bedford, says that deferring her pension has improved her quality of life in retirement.
She now receives roughly £310 each week, which includes increased State Pension benefits, instead of around £150 per week.
Sandra opted almost ten years ago, when she turned 60, to continue working part-time while deferring her State Pension.
She has extensive knowledge of the plan, having worked for the Department of Work and Pensions for many years, including 18 years as a State Pension specialist.
Her experience convinced her of the advantages of postponing and building up her entitlement.
Sandra also made voluntary National Insurance contributions to supplement her pension.
She eventually put off receiving her State Pension for seven and a half years. She now earns £16,000 each year.
Those who retire on the former basic State Pension will get a maximum of £137.60 per week, or £7,155 per year, plus any additional State Pension they have accrued. The new State Pension pays a maximum of £179.60 per week, or £9,339 per year, to those who retire.
“Brinkwire Summary News,” Sandra’s.