Retirees are set to get some extra money added to the retirement pot, as the state pension is getting an increase in 2019.
The full state pension will rise from £164.35 to £168.60 a week.
The basic state pension, which is paid to people who reached state pension age before 2016, is increasing from £125.95 to £129.20 a week.
What is a state pension?
This is the regular income that people who have got to state pension age receive from the UK Government. The intention of it is to make sure that Britons have financial support in retirement. It is funded from National Insurance (NI) contributions.
How do state pension rises work?
The state pension level grows yearly by the highest of 2.5 percent growth in earnings or Consumer Price Index (CPI inflation).
This is because of the ‘triple lock’ guarantee. This has been boosting payments for pensioners since 2010.
How does the state pension work?
The UK government pays this weekly to those who have reached state pension age.
The state pension age will rise for men and women, until reaching the age of 66 in October 2020, and the age of 67 between 2026 and 2028.
Though yet to be confirmed, it could go up again to the age of 68 between 2037 and 2039.
You need to make NI contributions to qualify for the state pension, 35 years worth to get the maximum claim, and 10 years worth to qualify to receive the minimum.
If you pay above £892 of NI contributions weekly, you only have to pay two percent of the remainder of your salary.
If you want to contribute more to it, you can also put in extra NI payments voluntarily.