A Guide to Your Pension Options

Other Things That Could Effect Your Pension

Change to the State Pension age for women

From 6 April 2020, State Pension age for both men and women will be 65. The Government will introduce the change gradually from age 60 to 65 for women over a 10-year period from 2010 to 2020.

When will I get my State Pension?

• If you are a woman born before 6 April 1950, you can claim your State Pension at 60.
• If you are a woman born on or after 6 April 1955,you can claim your State Pension at 65.
• If you are a woman born between 6 April 1950 and 5 April 1955, your State Pension age will be between 60 and 65, depending on your date of birth.

• This change does not affect men.

For more details about how this change might affect you visit the website at www.pensionguide.gov.uk

What if I get divorced?

If you get divorced or have your marriage annulled, the courts have to take into account the value of all your assets, including the value of your pension rights. This is so that the courts can decide how all your assets should be divided.

Since 1 December 2000, couples whose marriage ends in divorce or annulment have been allowed to share the value of their pension rights. The idea is to provide greater flexibility and choice and, where possible, a clean break. Pension sharing is not compulsory - it is simply an option available for divorcing couples who have rights to second pensions, such as:

• an occupational pension scheme
• stakeholder pension scheme
• a personal pension scheme; and
• the additional State Pension.
  
  Pension sharing does not apply to:
• the basic State Pension, as divorced people can already replace their own contribution record with their husband 's or wife's record for the period the marriage lasted;
• couples who started divorce or annulment proceedings before 1 December 2000; or
• couples who separate but do not divorce.

Pension sharing only applies to divorce proceedings which started on or after 1 December 2000.

If you want to know more about how divorce affects your pension, you may want to get advice from a lawyer or an independent financial adviser (or both). In Northern Ireland, a court can make a pension sharing order in connection with proceedings for a divorce or annulment. In Scotland, a financial order can be made as part of the divorce proceedings.

Bereavement benefits

For men and women under State Pension age, there is a new system of bereavement benefits if you are married. You should think about these bereavement benefits as part of your overall financial plans. This new system does not affect women already getting widow's benefits under the previous scheme.

Living abroad

If you plan to live abroad when you retire, the pension you get from an occupational scheme will increase each year in line with the scheme rules and current legislation.

If you go to live abroad permanently, you will not get a yearly increase in your State Pension (including your additional Sate Pension) unless you live in a European Economic Area country or a country that the UK has an agreement with that allows for these increases (known as upratings).