Retirement Made Easier, Says Ritchie

Retiring on the state pension is to get easier for people in Northern Ireland.

From April next year, the system will be both fairer and simpler, especially for women and carers.

Tomorrow marks the start of a 12-month countdown to the pension changes which, among other things, will help women over 55 years of age.

They are already being urged by the Executive's Social Development Minister: "People are living longer, are healthier and spending longer in retirement than earlier generations.

"It is more important than ever that individuals know their options and plan accordingly," she said today.

'Step one' is to request a pension forecast to show how many years of national insurance contributions have already been built up and the amount of state pension a person can expect.

Then, as the pension age for women will rise gradually from 2010, the second recommended step is to generate a personalised 'due-date' using the pension service online calculator.

If a forecast shows missing national insurance years, then the 'third check' is to find out if buying extra contributions would give a bigger final pension.

People can already look into filling the most recent six years, but from April 2009 anyone with 20 or more qualifying years, reaching state pension age between 6 April 2008 and 5 April 2015, may be able to buy up to six more.

From 2010, filling gaps in national insurance records could be worth even more as the pensions reforms reduce the years needed for a full basic pension from 44 years for a man and 39 years for a woman, to 30 years for both.

The fourth step is to check for forgotten private pensions. An estimated three billion pounds lies unclaimed in pension accounts.

Online the free 'Pension Tracing Service' can help uncover any forgotten personal or work pensions.

Finally, people approaching retirement should consider whether deferring their state pension would make financial sense.

If they put off their pension, they can get a higher weekly amount or a lump sum if they defer for at least a year, when they decide to take the cash.

These changes and further information about services are available online at www.dsdni.gov.uk
(BMcC/JM)