Second State Pension

The state second pension is an extra amount of money you could get with your basic state pension, based on your NI contributions. There’s no fixed amount. How much you get depends on your earnings and whether you’ve claimed certain benefits. It is paid with your basic state pension and you get it automatically, unless you’ve contracted out of it.

 

The maximum you could get in 2014/15 is £163 a week. With your basic state pension of £113, this could take your total state pension to £273.a week.

You can click here to use the Government website to check if you're eligible.

Contracting Out of the Second State Pension

If you already pay into an employer pension scheme, you don’t contribute to the second state pension. This means that you and your employer will pay lower National Insurance contributions. You have Contracted Out of the Second State Pension.

At retirement you either don’t get any second state pension, or it might be reduced - depending on how long you contracted out for.

If you are considering supplementing your state pension with a Private Pension, we strongly advise that you seek professional advice from a fully qualified and regulated Independent Financial Advisor. Pension decisions are usually a major financial decision that requires the appropriate level of advice to make the right choice. In contrast, mistakes can be costly.To arrange for a no obligations, initial free telephone consultation click here.