State Benefits

The main purpose of the State scheme is to provide benefits for people over the State Pension Age (SPA), but it also provides certain other benefits such as those for the sick or disabled, and for those who are unemployed. Current levels of benefit can be found on the website.  

The Basic State Pension is payable to people reaching SPA before 6 April 2016. Those reaching SPA on or after that date will get  the New State Pension.

1. References

This section relates to State Benefits and can be found in the relevant pages of the Retirement Provision Certificate Study Manual 2023

2.Think about it

The Government has been asked to rethink state pension age increases due to prospective lower age expectancy in future years.

What are the reasons for this?

Is a better argument to not increase state pension age in the future, as we have a declining birth rate, rather than reduce it now?

Write your comments down as part of your revision structure/practice.

3. Fact Finding

The Government introduced a single-tier State Pension in April 2016. This meant the end of contracting out as there is now no additional State Pension to contract out of. Since the introduction of automatic enrolment in 2012, individuals can decide whether to stay in or opt out of a workplace pension.

 A simpler system will mean individuals are better able to make informed decisions about how much they need to save privately. This will make it easier to plan for their retirement.

 Take a look at the link below to see what options were considered for simplifying the State Pension system:

Summarise the options as part of your revision.

4. Test

You can now check your knowledge by a short test.  Once completed then check your answers against those given.

State Benefits - Test

State Benefits Test Answers