The Department for Work and Pensions (DWP) is giving state pensioners extra cash through increases in the Additional State Pension rate. This extra amount, also known as the State Earnings-Related Pension Scheme (SERPS) or State Second Pension, is available to men born before 6 April 1951 and women born before 6 April 1953.
Who Qualifies for the Basic State Pension?
The Basic State Pension is paid to eligible employees and self-employed individuals who reached state pension age before 6 April 2016. It is not automatic and must be claimed. It is not means-tested and can be deferred. Anyone with enough qualifying years, including the self-employed, can claim it. However, the Additional State Pension is only for employed individuals.
How Much Extra Cash Can You Get?
There is no fixed amount for the Additional State Pension. The amount depends on several factors:
- How many years you paid National Insurance
- Your earnings
- Whether you contracted out of the scheme
- Whether you topped up your Basic State Pension (possible only between 12 October 2015 and 5 April 2017)
If you paid or had credited enough National Insurance contributions in a tax year, it counts as a qualifying year. You can also pay voluntary contributions for missing years. If you have fewer qualifying years than required, your Basic State Pension is reduced proportionally, with no minimum number of qualifying years needed.
Remember, the Basic State Pension is only for those who reached state pension age before 6 April 2016. The DWP's extra cash through the Additional State Pension can provide a valuable boost to your retirement income.
