State pension changes from 6 April 2016

The new flat rate state pensions scheme is introduced from this date.

The key points to note are:-

Individuals will need a minimum of 10 qualifying years to receive any of the state pension (under the existing rules you only need 1 year)

The full flat rate pension will only be given to individuals with 35 qualifying years (currently only 30 qualifying years are required)

The state pension age at 6 April 2016 will be 63 for women and 65 for men but these ages are due to rise in later years

If you think your national insurance record is deficient you can request a pension forecast either on-line or by telephone.

You can then decide whether you need to pay sufficient director’s salary from your company to increase the number of qualifying years, pay class 2 contributions for years where you previously claimed exception or if you are going to reach state pension age before 6 April 2016, consider paying class 3A contribution.  This option will be available from 12 October 2015 to 5 April 2017 and a maximum of 25 units can be bought.  One unit buys £1 extra state pension per week and the cost per unit will depend on the age of the applicant.